presentation on oil & gas

7/27/2019 Presentation on Oil & Gas

1/45

Petroleum (from Latin petrarock and oleumoil), crude oil,

sometimes colloquially called black gold, is a thick, dark brown or

greenish flammable liquid, which exists in the upper strata of some

areas of the Earth's crust. It consists of a complex mixture of various

hydrocarbons, largely of the alkane series, but may vary much in

appearance, composition, and purity. Petroleum is also the raw

material for many chemical products, including solvents, fertilizers,

pesticides, and plastics.

PETROLEUUM


2/45

HISTORYThe first oil wells were drilled in China in the 4th century or

earlier. The oil was burned to evaporate brine and produce

salt. By the 10th century, extensive bamboo pipelines

connected oil wells with salt springs.The modern history of oil began in 1853, with the discovery

of the process of oil distillation. Crude oil was distilled into

kerosene by Ignacy Lukasiewicz, a Polish Scientist. The first

"rock oil" mine was created inRobrka, near Krosno in

southern Poland in the following year and the first refinery(actually a distillery) was built in Ulaszowice, also by

Lukasiewicz.

PETROLEUUM


3/45

4TH CENTURY --OIL DRILLED IN CHINA AND BURNED TO EVAPORATE

BRINE TO PRODUCE SALT

10TH

CENTURY--TRANSPORTATION OF OIL THROUGH BAMBOOPIELINES

1853----------OIL DISTILLED BY POLISH SCIENTISTIGNANCYLUKASIEWICZ AND IN 1854 FIRST REFINERY WAS SET UP

BY MR LUKASIEWICZ

1859--- ------------OIL DISCOVERED BY COL DRAKE IN PENSYLVANIA, USA

1866-----------------OIL FOUND BY MR GOODENOUGH IN UPPER ASSAM

1889-----------------OIL PRODUCTION STARTED UNDER ASSAM RAILWAY &

TRADINGCORPORATION

1901-----------------500 BARRELS PER DAY REFINERY SET UP IN DIGBOI,

ASSAM

2005------- ABOUT 2135 BILLION BBLS/DAY REFINING CAPACITY

(17 REFINERIES) IN INDIA

ABOUT 81995 BILLION BBLS/DAY REFINING CAPACITY(739 REFINERIES) IN WORLD

A FEW HISTORICAL MILESTONES IN PETROLEUM


4/45

What Is Crude Oil?

Crude Oil is a liquid mixture ofthousandsof organic chemicals found underground. Itis the result of organic matter decaying overthousands of years; hence the namefossilfuel

Crude oil is found all over the world and variestremendously in its density, aromatics, sulfur, andmetals content Crude oil is found all over theworld and varies tremendously in its density,aromatics, sulfur, and metals content


5/45

So, HowDo You Make Good Stuff Out

Of Crude? Separate crude into fractions

Convert low octane components to higher

octane components Convert the very heavy stuff to heavy oils

Convert heavy oils togasoline,diesel,jet fuel

Remove sulfur/nitrogen through reaction Blend intermediate streams together to meet

product specifications


6/45

Crude oil is a finite resource. It is estimated that there is a total of

2,390 billion barrels (380 km) of crude oil on Earth. Estimates ofundiscovered reserves range widely from 275 to 1,469 billion

barrels (44 to 234 km).

Between 1859 and 1968, 200 billion barrels (31 km) of oil were

used, and since then oil production has stabilized at 22 billion

barrels (3.5 km) per year. In 2004, as prices reach record highs,

world consumption is on track to 30 billion barrels per year.

It is believed that about 77% of crude oil has already been

discovered, and 30% of it has been used so far. Current estimates

are that oil reserves will become scarce by the 2050s, although thisdate has been pushed forward many times as new oil wells are

discovered.

Some observations w.r.t. Crude Reserve and consumption


7/45

Refineries

Refineries are very complicatedchemical

processing plants that use reactions and

separations to convert crude oil into gasoline andother valuable products

The purpose of an oil refinery is to transform

relatively low value crude oil into high value

products as efficiently, profitably and

environmentally sound a way as possible


8/45

Distillation The initial separation takes place

in the distillation Column

The Crude is first heated in a furnaceto a temperature of 360 oC

It enters the column and vapours and

liquids separate

The light vapours rise to the top whilst

the heavier liquids fall to the bottom


9/45

Distillation (Atmospheric and Vacuum)

This is the first stage in the refining for separating crude oil

components at atmospheric pressure by heating, and subsequent

condensing, of the fractions (unfinished petroleum products) by

cooling.

Distillation under reduced pressure (less than atmospheric) i.e.

Vacuum Distillation lowers the boiling temperature of the liquid

being distilled permitting the production of distillates at lowertemperature than would be necessary in atmospheric distillation,

thus avoiding coke formation.

The Jamnagar Refinery has a combined Crude Distillation Unit /

Vacuum Distillation Unit (CDU / VDU) to separate the crude oil into

primarily fractions of LPG, Naphtha, Kerosene, Gasoil, Vacuum Gas

Oil and Vacuum Residue. The combined CDU/VDU maximizes

energy integration to minimize the energy required for primary

separation.


10/45
http://en.wikipedia.org/wiki/Image:ShellMartinez.jpghttp://en.wikipedia.org/wiki/Image:ShellMartinez.jpg


11/45

Furnace

Distillation Column

Crude

Kerosene

Gases +Tops + Naphtha

Light Gasoil

Heavy Gasoil

Long Residue


12/45

Diesel

Gas Oil

CrudeOil

Bitumen

Roads

Long Chain Molecules

Gas treatmentSulphur

RecoverySulphur

H2S H2S

Waxy Distillate

Butane

De-asphalting

AsphaltFuel oil

De-asphalted oil DAO

Desulphurisation

Kerosine

Shorter Chain Molecules

Hydrogen

ManufacturingUnit

Hyrdr

ocracker

Hydrogen

High Vacuum

Separation

Vacuum Gas Oil

Long Residue

Distillation

Diagram of Refinery Units

Platformer Petrol


13/45

GASOILS32%

JET/ KERO14%

MOGAS30%

FUEL AND LOSS7%

FUEL OILS17%

Approx 7 Barrels to the Tonne

A Typical Crude Barrel


14/45

NATURAL

GAS

C3/C4 (LPG)

NAPHTHA

ETHANE

KEROSENE

CATALYTIC

REFORMING

GAS CRACKER

GAS OIL

FCC

PROPYLENE

BUTANE

METHANESTEAM

REFORMING

HYDROGEN

ETHYLENE GLYCOL

ETHYLENE DICHLORIDE

POLY PROPYLENE

ACRYLONITRILE

TOLUENE

O-XYLENE

P-XYLENE

BUTADIENE

MALEIC ANHYDRIDE

POLYISOBUTYLENE

POLYBUTADIENE

ETHYL BENZENE STYRENE

CUMENE PHENOL

POLY ETHYLENE TEREPHTHALATE

ETHYLENE OXIDE

POLY VINYL CHLORIDEPOLYETHYLENE

METHYLMETHACRYLATE

METHANOLFORMALDEHYDE ACETIC ACID

LINEAR ALPHA OLEFIN

POLYACRYLONITRILE

CARBON FIBRE

RESIDUE

CRU

DE

OIL

NAPHTHA

CRACKER

BENZOIC ACID

PHTHALIC ANHYDRIDE

DETERGENT

CYCLO HEXANE CAPROLACTUM

POLYCARBONATE

SYNTHESIS GAS

BUTYLENE BIS-PHENOL A

BENZENE

OVERVIEW OF REFINERY & PETROCHEMICAL PRODUCTS

ABS

RUBBER

STYRENE

BUTADIE

NE

RUBBER

ACRYLO

NITRILE

BUTADIE

NE

RUBBER

POLY

STYRENE

ETHYLENE

NYLON 6

GASOLINE

HYDROCRACKING

DIESEL


15/45

Major Refinery Products

LPG (Propane/Butane)

GASOLINE (hundreds of blends)

JET FUELS

DIESEL FUELS

HEATING OILS

GREASES

ASPHALTS

COKE (not the kind you drink )


16/45

Top petroleum-producing countriesSource: Energy Statistics from the U.S. Government

(Ordered by amount (barrels per dayproduced in 2004):

Saudi Arabia (OPEC)

RussiaUnited States

Iran (OPEC)

Mexico

China

Norway

Canada

Venezuela (OPEC)

United Arab Emirates (OPEC)

Kuwait (OPEC)

Nigeria (OPEC)

United Kingdom

Iraq


17/45

Ordered by amount exportedin 2003:

Saudi Arabia (OPEC)

Russia

Norway

Iran (OPEC)

United Arab Emirates (OPEC)

Venezuela (OPEC)

Kuwait (OPEC)

Nigeria (OPEC)

Mexico

Algeria (OPEC)

Libya (OPEC)

Note that the USA consumes almost all of its own production.Total world production/consumption (as of 2005) is approximately 84 million

barrels per day.


18/45

Crude processed in India are:

1. Indigenous crude oil sources

a. Bombay high and satellite fields

b. North Gujarat and Ankaleshwar crude

c. Assam crudes

d. KG Basin-Rava crude

e. Cauvery Basin crude

All the above crudes are low sulphur =


19/45

2. Imported crudes are sourced mostly from:

a. Gulf Region

b. Nigeria

c. Malaysia

d. Australia

The above crudes are specially selected for production of Bitumen/LOBS/ATF, beside fuel

products.

These crudes are having varying range of sulphur from low of high.


20/45

OIL PRICE DURING 1860 TO 2000
http://en.wikipedia.org/wiki/Image:Oil_Prices_Short_Term.pnghttp://en.wikipedia.org/wiki/Image:Oil_Prices_Medium_Term.png


21/45

Country/Region OIL Natural Gas

As on Jan.1 2005 As on Jan.1 2005

Billion barrels % Trillion Cuft. %Middle east 729.341 57.08 2522.125 41.76

East Europe & 88.3 6.91 1964.16 32.52

USSR

Western Europe 16.255 1.27 182.487 3.02

Central & 100.595 7.87 250.52 4.15South America

North America 215.291 16.85 260.494 4.31

(USA) 21.891 1.71 189.046 3.13

(Canada) 178.8 13.99 56.6 0.94

Asea & 36.246 2.84 383.913 6.36Oceania

(India) 5.371 0.42 30.14 0.50

Africa 100.784 7.89 476.509 7.89

WORLD 1277.702 100.00 6040.208 100.00

OIL & NATURAL GAS RESERVE


22/45

Country/Region Number of Crude Catalytic Thermal Reforming

(All capacity Refineries Capacity Cracking Cracking

Billion bbls/day)Middle east 46 6319 372 483 599

East Europe & 88 10128 824 516 1396

USSR

Western Europe 112 15072 2236 1597 2220

Central & 70 6634 1321 452 407

South America

North America 176 20425 6683 2392 4215

(USA) 149 16757 5813 2254 3581

Asea & 202 20205 2720 432 2019Oceania

(India) 17 2135 167 93 42

Africa 45 3213 195 78 387

WORLD 739 81995 14352 5949 11243

REFINING CAPACITY


23/45

REFINING CAPACITY IN INDIA (MMTPA) : AS ON 1.04.2000

FIGS IN MT

1 INSTALLED CAPICITY AS OF DATE PUBLIC JOINT PRIVATE TOTAL

SECTOR SECTOR SECTOR

1. IOC-DIGBOI 0.65 0.65

2. BPCL-BOMBAY 6.90 6.90

3. HPCL-BOMBAY 5.50 5.50

4. HPCL-VIZAG 7.50 7.505. IOC-GAUHATI 1.00 1.00

6. IOC-BARAUNI 4.20 4.20

7. IOC-KOYALI 12.50 12.50

8. IOC-HALDIA 3.75 3.75

9. IOC-MATHURA 7.50 7.50

11 IOC-PANIPAT 6.00 6.00

12 CRL-COCHIN 7.50 7.50

13 CPCL-CHENNAI 6.50 6.50

14 BRPL-ASSAM 2.35 2.3515 MRL-NARIMANAM 0.50 0.50

16 NRL - NUMALIGARH 2.35 2.35

17 RPL - JAMNAGAR 27.00 27.00

18 MRPL-MANGALORE 9.69 9.69

SUB TOTAL 72.35 12.04 27.00 111.39


24/45

2. ADDITIONS IN REFINING CAPACITY

A) PROJECTS APPROVED BY THE GOVT:

Expected

REFINERY EXPANSIONS Commissioning

IOC-MATHURA 0.50 0.50 2000-01

MRPL-MANGALORE 6.90 6.00 12.90 2000-01

IOC-KOYALI 3.00 3.00 2000-01

SUB TOTAL 10.40 6.00 16.40

NEW REFINERIES

CENTRAL INDIA (JVC-BPC) 6.00 6.00 2001-02

SUB TOTAL 0.00 6.00 6.00

B) PROJECTS UNDER CONSIDERATION (EXPANSION)IOC-PANIPAT (PSU) 3.00 3.00 2002-03

IOC-BARAUNI 2.70 2.70 1999-02

CRL-COCHIN 3.00 3.00 2002-03

MRL-MADRAS 3.00 3.00 2002-03

SUB TOTAL 11.70 11.70

C) NET CAPACITY ADDITION (A+B) 22.10 12.00 34.10

3. PROPOSED REFINERIES

EAST COAST (JVC-IOC/PVT.PARTY) 12.00 12.00 X PLAN

WEST COAST (JVC-HPC) 6.00 6.00 2002-03UP REFINERY (JVC-BPC/SHELL) 7.00 7.00 X PLAN

PUNJAB REFINERY 6.00 6.00 X PLAN

SUB TOTAL 31.00 31.00


25/45

4. PROPOSED PRIVATE SECTOR REFINERIES:

ESSAR ( UNDER CONSTRUCTION ) 9.00 9.00 X PLAN

ASHOK LEYLAND (GOTCO) 2.00 2.00 X PLAN

SOROS 6.00 6.00 X PLAN

NIPPON DENRO 9.00 9.00 X PLAN

SUB TOTAL 26.00 26.00

5. PROPOSED PRIVATE SECTOR REFINERIES (EOUs) LOI issued onINTERNATIONAL PETROLEUM 5.00 5.00 14.6.92

BLACK GOLD 2.50 2.50 10.6.93

PETRO ENERGY PRODUCTS 4.80 4.80 22.6.94 (FIPB)

JINDAL FERRO 6.00 6.00 22.9.94 (CCFI)

TIDCO 2.00 2.00 17.9.94 (CCFI)

ABAN LLOYD 3.00 3.00 12.1.95 (FFCI)

MOPLACE UDYOG 3.00 3.00 14.3.96

SUB TOTAL 26.30 26.30

6. TOTAL (1+2+3+4+5) 94.45 55.04 79.30 228.79


26/45

Oil Refining Companies in India (As on 31stMarch 2001)

Name of the Oil

company

Principal Shareholders Location of refineries Capacity

(million

tons/year)

Age of refineries

(years)

Indian Oil Government of India (82%) Gujarat 12.5 36

Mathura 7.5 19

Panipat 6.0 3

Barauni 4.2 37

Haldia 3.8 27

Guwahati 1.0 39

Digboi 0.7 100

Reliance Petroleum Reliance Industries, its subsidiaries

and associates (65.8%)

Jamnagar 27.0 2

Hindustan Petroleum Government of India (51%) Vizag 7.5 44

Mahul 5.5 47

Mangalore Refineriesand Petrochemicals

Limited

Hindustan Petroleum (37%)/AdityaBirla Group (37%)

Mangalore 9.6 5

Kochi Refineries Bharat Petroleum (55%) Kochi 7.5 35

Chennai Petroleum Indian Oil Corporation (52%) Chennai 6.5 32

Narimanam 0.5 7

Bharat Petroleum Government of India (66%) Mahul 6.9 46

Bongaigaon Refineries Indian Oil Corporation (75%) Bongaigaon 2.4 22

Numaligarh Refineries Bharat Petroleum (51%) Numaligarh 3.0 2

Total 112.1

Source: Annual Reports &Industry Data


27/45

Oil production & consumption in India (Million tons)

1997 1998 1999 2000 2001

Crude oil production 32.9 33.9 32.7 32 32.5

Crude oil consumption 62.9 65.2 68.5 86 103.5

Deficit (Met by Imports) (33.9) (34.5) (39.8) (54.0) (71.0)


28/45

Growth & Development of Refinerieries in

India

1866 Oil discovery at Nahorpung, Assam.

1889 Oil Production started at Digboi, Assam.

1893 First Refinery started at Margharita, Assam.

1899 Assam Oil Company was formed.

1901

Digboi Refinery was commissioned

supplanting the earlier refinery at Margarita.


29/45

Year Incident

1947-1957

Setting up of three coastal refineries by

Multi National Oil Companies (MNCs)

2 at Mumbai (Esso & Burmah Shell)

1 at Vizag (Caltex)

The MNCs were already marketing

petroleum products in India by then.

1954

Indian Oil exploration with the help of

Russian Geologists.

1956

Formation of Oil and Natural GasCommission for exploration and

production of crude oil and gas.


30/45

Year Incident

1958

Indian Refineries Ltd (IRL) was formed in

the public sector to install refineries and

pipelines in India.Oil India Ltd (OIL) was formed as a joint

venture company between Government

of India and Burmah Oil Co.

1959

Indian Oil Company formed for

marketing petroleum products.

1962

The first refinery in the public sector

commissioned at Guwahati (0.75

MMTPA) under IRL.

1963

Indian Oil Blending Ltd. -A JV between

Indian Oil Co. and Mobil Petroleum Co.

Inc. was formed for manufacture of lube

oils and greases.

1964

IRL was dissolved and merged withIndian Oil Co. Ltd, to form Indian Oil

Corporation Ltd. (IOCL)


31/45

Year Incident

1974 IOBL became part of IOCL.

1981

Assets of erstwhile Assam Oil Co. were

taken over and vested in IOC as Assam

Oil Division (AOD).

1998 Panipat Refinery of IOC commissioned.

1999

Reliance Petroleum Refinery at

Jamnagar, commissioned.

2000 Numaligarh refinery commisssioned.


32/45

Year Incident Total Refining Capacity

MMTPA

2002-03 135

Barauni Expansion

Haldia Expansion

HPCL, Mumbai ExpansionCPCL, Nagapatinam

RPL Expansion

Future Outlook (as per 2025 vision document)


33/45


MMTPA

2003-04 170

Koyali Expansion

Panipat Expansion

BPCL Expansion

CPCL ExpansionBRPL Expansion

Paradip

Essar Oil Expansion

Nagarjuna Oil



34/45


MMTPA

2004-05 176

Kochi Refinery Expansion

2005-06 214

Essar Oil Expansion

RPL Expansion

Bhatinda

2006-07 BRPL Expansion 221

Bina



35/45

Strategies for Indian Refineries

Residue upgradation technologies for heavy crudes

Technologies for producing lighter fuels.

Process technologies to improve quality with

respect to :

- performance parameters- eco-friendly products

Value addition to refinery streams

Increased emphasis on Process Control/

Automation

Evolutionary/innovative technological changes

expected rather than evolutionary ones.

Refineries to be integrated, compact and flexible

with respect to crude/ product mix.


36/45

Future Technological Challenges

Meeting higher demand of petroleum

products (viz. distillates)

Meeting higher standards of product

qualities.

More emphasis on environment

Value addition to refineries

Technologies to improve margins

Zero emission refinery


37/45

DISTILLATION RANGE IMPROVEMENT

New residue conversion technologies like FCC,

Hydrocracker, RDS-RFCC

Advanced controls and optimisation

Advanced catalysts

Continuous simulation of plants/product mix through

computer models

Prudent selection of technologies and proper

integration of secondary units/ plants.


38/45

REFINING CAPACITY IN INDIA AS IN THE YEAR 2002

No Refineries MMTPA

Year of

Commissioning

1 Indian Oil Corporation Limited, Digboi 0.65 1901

2 Indian Oil Corporation Limited, Guwahati 1.00 1962

3 Indian Oil Corporation Limited, Barauni 3.30 (6.0) 1964

4 Indian Oil Corporation Limited, Koyali 13.5 (18) 1965

5 Indian Oil Corporation Limited, Haldia 3.75 (7.5) 1974

6 Indian Oil Corporation Limited, Mathura 7.50 1982

7 Hindustan Petroleum Corporation Limited, Vizag 7.50 1975

8 Hindustan Petroleum Corporation Limited, Mumbai 5.50 1954

9 Bharat Petroleum Corporation Limited, Mumbai 8.90 1955


39/45

No Refineries MMTPA

Year of

Commissioning

10

Cochin Refineries Limited, Cochin

7.50 (10.5)

1966

11Chennai Petroleum Corporation Limited, Chennia

6.50 (9.5)1969

12 Bongaigaon Refineries Limited, Bongaigaon 2.35 1972

13

Madras Refineries Limited (CBR), Nagapatinam

0.50

1994

14 Mangalore Refineries & Petrochemicals Ltd.,

Mangalore6.00 (9.0)

1995

15 Indian Oil Corporation Limited, Panipat 6.00 1998

16 Reliance Petroleum Limited, Jamnagar 27.00 1999

17 Numaligarh Refineries Ltd., Numaligarh 3.00 2000

Total Capacity

112.45


40/45

ADVANCES IN PETROLEUM REFINING

Various issues faced by the refining industry have

led to many major developments in this area. The

challenges are:

1. Crude oil is becoming heavier and higher in

sulphur and metal content.

2. Reduced growth in fuel oil demand.

3. Rapid growth in light/middle distillates.

4. Stringent environmental regulation for cleaner

products/processes and demand for quality

products.

5. Declining refining margins

6. Improved engine design/automobiles need better

quality fuel and lubricating oils.


41/45

Advances in refining technology can bebroadly divided into the following

categories.

Improved and integrated refining

Production of better quality products

Processing of residues/heavier ends

Management of power and utilitues.

Value addition through optimisation of refineryconfiguration

Petrochemicals production

Better quality and increased lube oil production

Power generation from heavier petroleumproducts.

Specialty chemicals production.


42/45

Improvements are taking place in many

areas. Some of them are listed below

Distillation

Fluid Catalytic Cracking (FCC), Resid Fluid

Catalytic cracking (RFCC).

Delayed coking Needle coke manufacturing,

Visbreaker-Soaker Technology.

Hydro processing

Hydro treatment of various streams including

residues.

Hydro cracking

Super Oil Cracking (SOC) of heavy distillates

to get 90% conversion to distillates.


43/45

Improvements are taking place in many areas. Some of

them are listed below

Mobile Distillate De-Waxing (MDDW) to upgrade heavy

fuel oil to high quality distillate and gas yield of 93-95%.

Isomerisation

Catalytic Reforming

Alkylation

Etherification

Power generation by petroleum residue and coke by using

Gasification Combined Cycle (GCC) technology.

In this process along with power, steam and H2 can be

produced which are required in the refinery.

More and more use of information technology.

Modeling simulation


44/45

Refinery integration and value addition strategies

Small an Medium Refineries Integration with Specialty Chemical

Production Units for Value addition

Anode Grade Coke Needle Coke

Production Microcrystalline Wax Production

Alpha-Olefins Production

Larger Refineries

Petrochemicals and Specialty Products

Integration of Refining and Power Generation Integration of Fuels and Lube Production


45/45

Thank you

E N D

presentation on oil & gas

Documents