Session 2Session 2

Overview and History

of Process Industry

Today’s Agenda Today’s Agenda

– Growth and development of the

industry– Impact of the industry on the

community and the economy– Responses of the industry to global

issues– Regulation of the Industry– New terminology

The Process IndustryThe Process Industry

Process Industry

Pharmaceuticals

Pipeline

Chemical Refining Food/Bev Pulp/Paper

OilfieldEnergy Mining

Non-renewable

Alternative Nuclear

TermsTerms

• Process• Process Industry• Process Unit• Refining• Feedstock• Petrochemicals

Early Uses of PetroleumEarly Uses of Petroleum

• What are some of the earliest uses of petroleum you can think of?

Early Uses of PetroleumEarly Uses of Petroleum

• Egypt - help preserve mummies, seal pyramids, and

• China• Persia• Sumatra (Indonesia)• Native Americans• Medicine shows

Petroleum Engineering 101 Petroleum Engineering 101 ActivityActivity

• Using the picture on the previous slide determine the following:– How could you determine where to find the oil and gas?– How would you get the oil and gas to the surface?– Is the oil and gas pure? If not, what needs to be done

to improve the quality?– How would you store the oil and gas on site?– How would you transport the oil and gas to processing

plant? Answers should take into consideration SHE, technology, and

economics

In Search of a MarketIn Search of a Market

• 1850: First refinery• 1853: Kerosene• 1859: First oil well in Titusville, PA• 1865 First pipeline in Titusville, PA• 1869: New products: Vaseline, candle

wax, gum• 1885: First gasoline-powered automobile

Refining ProcessesRefining Processes

• 1850: First refinery

• 1860: Fifteen refineries producing naphtha,

kerosene, heavy oils and tars

• 1913: Thermal cracking to produce gasoline

• 1936: Catalytic cracking to produce gasoline

• 1940: Catalytic reforming to increase octane

Chemical ProcessingChemical Processing

• Late 1700s - 1800s: Industrial revolution, beginning of chemical industry

• 1800s: Demand for manufactured consumer products increases

• Early 1900s: Britain and U.S. dominate industry

• Environmental concerns• Key processes• Examples of end products

War, Petroleum, and War, Petroleum, and ChemicalsChemicals

• WWI and WWII dramatically increase importance of processing industries

• Industry advances help Allied victories– Synthetic rubber– Plastic– Rayon & Nylon– Higher octane fuels– Nuclear bombs

The 1950s - 1970sThe 1950s - 1970s

• Post WWII Booms– automobile travel– babies - consumer products

• 1950s: U.S. and European domination of petroleum business

• 1960s: Foreign nationalization• 1970s: Oil glut and Arab Oil

Embargo

Pollution - Crisis and Pollution - Crisis and ResponseResponse

• Warning signs• “Critical Mass” of chemicals in

the environment• Growing awareness of ecological

damage• Responses

Regulation of the IndustryRegulation of the IndustryMajor Regulatory Agencies• EPA

– Clean Air Act (1970)– Clean Water Act (1977)– Resource Conservation Recovery Act (1980)

• OSHA - NIOSH• DOT• NRC• Homeland Security/Coast Guard• FDA

Today’s Process IndustryToday’s Process Industry

Impact on Gulf Coast Region• Process industries responsible for

about 50% of Houston’s economy • Employs 60,000 workers• Needs 4,800 – 6,000 new

hires/year• Jobs have become more complex

Current TrendsCurrent Trends

• Consolidations in industry– Mergers and acquisitions– Reduction of duplicate processes– Emphasis on keeping costs low

• Impact on Process Technicians– Higher expectations, more

responsibility– More education and training needed– More proactive work strategies

Trends for the FutureTrends for the Future

1. Serious foreign competition

2. More use of computers, advanced control simulation, process automation

3. Rapid technological change

4. Partnerships between education and industry

5. More regulation6. More legal issues

7. More responsibility, higher expectations of workers

8. More education/training9. Less supervision10. More smart jobs, 11. Job sharing12. Gender equity and

diversity issues