Overview Petroleum Refinery

Contents
Overview
Introduction
Major refining processes in modern refineries
Crude distillation products

Refining Processes
Physical Separation Processes
Chemical Catalytic Conversion Processes
Thermal Chemical Conversion Processes

Cont.

Refinery Configuration
Refinery-petrochemical Integration
Development of New Technology
What do The Chemical Engineers Do?

History of Use
1000 A.D. Arab scientists discovered
distillation and were able to make kerosene.
This was lost after the 12th century!
Rediscovered by a Canadian geologist called
Abraham Gesner in 1852

Oil seep in California

History of Use
1858: first oil drilled in Canada
1859: Edwin Drake!
Who is he?
He was the first person in the U.S. to drill for oil

Where?
Titusville, Pennsylvania

Initial cost: $20 per barrel, within three years

dropped to 10 cents
Now why do we measure oil in barrels?
1901: Texas! Spindletop gushed 60m high and gave
100,000 bbl a day

The first oil wells

The modern oil industry dates

back about 150 years.
The worlds first oil well was
drilled in Titusville, Pennsylvania
in 1859. It struck oil at 21 metres
below ground and produced 3,000
litres of oil a day.
Known as the Drake Well, after
"Colonel" Edwin Drake, the man
responsible for the well, it began
an international search for
petroleum, and in many ways
eventually changed the way we
live.

Why do we measure oil in barrels?

Historically, oil producers did store oil in barrels, although the size
and nature of those barrels were far from standard.
When the first oil fields were tapped in Pennsylvania during the
1860s, there were no steel 55 gallon drums in which to store the oil.
Instead, the oil was pumped into whatever containers could be
found, including pickle barrels, cracker barrels and whiskey barrels.
There was no standard size oil barrel, but eventually the wooden
whiskey barrel became the most popular storage container to hold
crude oil until it could be shipped to be refined.
The standard whiskey barrel at the time held approximately 40
gallons of liquid. Early oil producers wanted to ensure their
customers received every last drop they ordered, so they actually
overfilled the barrels to 42 gallons. This 42 US gallon mark (which is
about 35 Imperial gallons and about 160 liters) became the
standard measurement of oil in barrels produced in American oil
wells.

Overview
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

What is Crude Oil?

Crude oil is a mixture of
hydrocarbons formed from
organic matter.
Crude varies significantly in
color and composition
Composition varies
Sulfur content
Density varies
Contains sediment and
water

Introduction
Petroleum refining plays an important role in our lives. Most
transportation vehicles are powered by refined products such as
gasoline, diesel, aviation turbine kerosene (ATK) and fuel oil.
The price fluctuations of crude oil has affected the refining
industry in three ways:
First is an increased search for fuel products from non-fossil sources such
as biodiesel and alcohols from vegetable sources,
second is the development of better methods to process tar sand, coal
gasification and synthesis of fuels by FischerTropsch (FT) technology and
third is the initiation of long-term plans to look for renewable energy
sources.

Crude oil prices are still a cheap source for transportation fuels
and petrochemicals.

Introduction
Stricter environment regulations have raised the cost of
producing clean fuels.
This motivated the search for producing clean fuels by nonconventional methods, such as by ambient desulphurization by liquid
oxidants.
Olefin alkylation and FischerTropsch are other possible methods for
producing clean fuels.
New technology and better design of refinery equipment are also
being developed in order to produce clean and less expense fuels.

In the modern refinery, the refining processes are classified as

either physical separation or chemical conversion ones.
Examples for each class are given in Table

Major refining processes in

modern refineries

Refining Processes..
Physical Separation Processes
Chemical Catalytic Conversion Processes
Thermal Chemical Conversion Processes

Refining Processes
Physical Separation Processes
Crude Distillation
Solvent De-Asphalting
Solvent Extraction
Solvent Dewaxing

Chemical Catalytic Conversion Processes

Catalytic Reforming
Hydrotreating
Catalytic Hydrocracking
Catalytic Cracking

Crude Distillation
Crude oils are first desalted and then
introduced with steam to an atmospheric
distillation column. The atmospheric residue is
then introduced to a vacuum distillation tower
operating at about 50 mmHg, where heavier
products are obtained. Typical products from
both columns and their boiling point ranges
are listed in Table .

Solvent De-Asphalting
This is the only physical process where carbon is
rejected from heavy petroleum fraction such as vacuum
residue. Propane in liquid form (at moderate pressure)
is usually used to dissolve the whole oil, leaving
asphaltene to precipitate. The deasphalted oil (DAO)
has low sulphur and metal contents since these are
removed with asphaltene. This oil is also called Bright
Stock and is used as feedstock for lube oil plant. The
DAO can also be sent to cracking units to increase light
oil production.

Solvent Extraction
In this process, lube oil stock is treated by a
solvent, such as N-methyl pyrrolidone (NMP),
which can dissolve the aromatic components in
one phase (extract) and the rest of the oil in
another phase (raffinate). The solvent is
removed from both phases and the raffinate is
dewaxed.

Solvent Dewaxing
The raffinate is dissolved in a solvent (methyl
ethyl ketone, MEK) and the solution is gradually
chilled, during which high molecular weight
paraffin (wax) is crystallized, and the remaining
solution is filtered. The extracted and dewaxed
resulting oil is called lube oil. In some modern
refineries removal of aromatics and waxes is
carried out by catalytic processes in all
hydrogenation process.

Catalytic Reforming
In this process a special catalyst (platinum
metal supported on silica or silica base
alumina) is used to restructure naphtha
fraction (C6C10) into aromatics and
isoparaffins.
The produced naphtha reformate has a much
higher octane number than the feed. This
reformate is used in gasoline formulation and
as a feedstock for aromatic production
(benzenetoluenexylene, BTX).

Hydrotreating
This is one of the major processes for the
cleaning of petroleum fractions from
impurities such as sulphur, nitrogen, oxycompounds, chlorocompounds, aromatics,
waxes and metals using hydrogen.
The catalyst is selected to suit the degree of
hydrotreating and type of impurity. Catalysts,
such as cobalt and molybdenum oxides on
alumina matrix, are commonly used.

Catalytic Hydrocracking
For higher molecular weight fractions such as
atmospheric residues (AR) and vacuum gas
oils (VGOs), cracking in the presence of
hydrogen is required to get light products. In
this case a dual function catalyst is used. It is
composed of a zeolite catalyst for the cracking
function and rare earth metals supported on
alumina for the hydrogenation function.
The main products are kerosene, jet fuel,
diesel and fuel oil.

Catalytic Cracking
Fluid catalytic cracking (FCC) is the main player
for the production of gasoline. The catalyst in
this case is a zeolite base for the cracking
function.
The main feed to FCC is VGO and the product
is gasoline, but some gas oil and refinery gases
are also produced.

Alkylation
Alkylation is the process in which isobutane
reacts with olefins such as butylene to
produce a gasoline range alkylate.
The catalyst in this case is either sulphuric acid
or hydrofluoric acid. The hydrocarbons and
acid react in liquid phase.
Isobutane and olefins are collected mainly
from FCC and delayed coker.

Isomerization
Isomerization of light naphtha is the process in
which low octane number hydrocarbons (C4, C5,
C6) are transformed to a branched product with
the same carbon number. This process produces
high octane number products. One main
advantage of this process is to separate hexane
(C6) before it enters the reformer, thus
preventing the formation of benzene which
produces carcinogenic products on combustion
with gasoline. The main catalyst in this case is a
Pt-zeolite base.

Delayed Coking
This process is based on the thermal cracking
of vacuum residue by carbon rejection forming
coke and lighter products such as gases,
gasoline and gas oils. Three types of coke can
be produced: sponge, shot and needle. The
vacuum residue is heated in a furnace and
flashed into large drums where coke is
deposited on the walls of these drums, and the
rest of the products are separated by
distillation.

Flexicoking
In this thermal process, most of the coke is
gasified into fuel gas using steam and air. The
burning of coke by air will provide the heat
required for thermal cracking. The products are
gases, gasoline and gas oils with very little coke.

Visbreaking
This is a mild thermal cracking process used to
break the high viscosity and pour points of
vacuum residue to the level which can be used
in further downstream processes. In this case,
the residue is either broken in the furnace coil
(coil visbreaking) or soaked in a reactor for a few
minutes (soaker visbreaker). The products are
gases, gasoline, gas oil and the unconverted
residue.

Crude Assay and Quality

Crude quality is getting heavier worldwide.
Existing refineries, which are designed to handle
normal crudes are being modified to handle
heavy crude. New technology for upgrading is
used to obtain clean and light products from
lower cost feeds. The crude assay will determine
the yields of different cuts and consequently, the
refinery configuration. A high conversion
cracking-coking refinery is required shown in

Refinery-petrochemical Integration
The growth of the petrochemical industry has put
pressure on refineries to either change their
configuration or operating conditions to produce
more aromatics and gases. FCC has been developed
to petro-FCC which produces high yield of gases.
The phasing out of the idea of increasing the octane
number by increasing aromatic content has changed
the role of the catalytic reformer to produce a high
yield of aromatics as BTX feedstock. The addition
of gasification units to process vacuum residue has
opened the way for the addition of a variety of
petrochemicals.

Crude distillation products

Yield(wt%)* Trueboilingtemperature(C)

Atmospheric distillation
Refinery gases (C1 C2)
Liquid petroleum gases
(LPG)
Light straight run (LSR)

Heavy gas oil (HGO)

0.10
0.69
3.47
10.17
15.32
12.21
21.10

3282 (90180 F)
82193 (180380 F)
193271 (380520 F)
271321 (520610 F)
321427 (610800 F)

Vacuum distillation
Vacuum gas oil (VGO)
Vacuum residue (VR)

16.80
20.30

427566 (8001050 F)
+566 (+1050 F)

Heavy straight run (HSR)

Kerosene (Kero)
Light gas oil (LGO)

Type of Products
In this case, refining is carried out by increasing
the hydrogen/carbon (H/C) ratio. This can be
achieved either by hydrogenation processes
such as hydrotreating, hydrocracking or by
carbon rejection processes such as thermal
cracking(coking) and FCC.
Some products can also be produced by special
refining operations, like in catalytic reforming,
isomerization and alkylation. The products are
classified in terms of average carbon number
and H/C ratios.

Environmental Regulation

Modern regulations in many countries require a

low level of contaminants like sulphur. This
requires the change of severity or design of
hydro-conversion units which can produce ultra
low sulphur products. Clean fuels are gaining
great interest, and completely new refinery
configurations are now being introduced to
produce clean fuels from new refinery feeds and
configurations. Additional units have been added
to existing refineries to handle untreated gas
emissions and refinery wastewater due to
changes in environmental regulations.

Crude Oil Characteristics

Crude density is commonly measured by API
gravity
API gravity provides a relative measure of crude oil
density. The higher the API number, the lighter the
crude

Sulfur content measures if a crude is sweet

(low sulfur) or sour (high sulfur)
Typically less than 0.5% sulfur content = sweet
Typically greater than 1.5% sulfur content = sour
High sulfur crudes require additional processing to
meet regulatory specs

Crude Types Versus Demand

Gasoline

Gasoline
5 - 15 %

20 - 30 %
Distillate
20 - 25%
Distillate
25 - 35%

Heavy Fuel
Oil
60 - 75%

Heavy Fuel
Oil
35 - 55%
Light Crude
Product
Composition

Heavy Crude
Product
Composition

Naturally occuring
hydrocarbon molecules do
not meet customer needs.
The refining processes must
adjust the molecules, reshape
them and remove contaminants
to ensure they meet
requirements for:
- end use performance
- environmental performance

Gasoline
40 - 45%

Distillate
30 - 35%
Heavy Fuel
Oil
~10%
Asphalt ~5%
Other ~5 -10%
Example
Product
Demand

Supply and Demand(California)

CA now consumes 44 to 45 million gallons of
gasoline and 10 million gallons of diesel fuel per
day.
Demand for transportation fuels increased
nearly 50% in last 20 years
Number of refineries producing gasoline in
California dropped from 32 in mid-1980s to 14
today
California now imports 3.5 million gallons of
gasoline per day.
Source: California Energy Commission

How Do I Keep In Business ?

I need to design and revamp the plant utilizing
the latest technology to be more efficient
I need to make the plant more flexible and
responsive
I need to operate (control) the plant in the most
efficient manner possible
I need to keep the equipment running all the time

I NEED CHEMICAL ENGINEERS!

Hydrocarbon Chains

So, How Do You Make Good Stuff

Out Of That Crude?

SEPARATIONS CRUDE FRACTIONATION

HUGE DISTILLATION COLUMNS
ATMOSPHERIC DISTILLATION
VACUUM DISTILLATION

TYPICAL SIZE: 150,000 BARRELS/DAY

750 OF

MAJOR REFINERY EQUIPMENT

Vessels-Reactors, Separators, Storage Tanks

Pumps & Compressors
Furnaces
Heat Exchangers
Instruments (measure flow, temperature,
pressure, composition)
Control Systems

MINIMIZING POLLUTION

Operate Furnaces Efficiently

Waste Material Goes To The Flare Stack
Avoid Spills & Accidental Releases
Special Treatment of Sewer Water
Lots of Paper Work!

Refinery Waste Characteristics

Boilers, process heaters, and other process equipment are responsible for the
emission of particulates, carbon monoxide, nitrogen oxides (NOx), sulfur oxides
(SOx), and carbon dioxide.
Catalyst changeovers and cokers release particulates. Volatile organic
compounds (VOCs) such as benzene, toluene, and xylene are released from
storage, product loading and handling facilities, and oil-water separation systems
and as fugitive emissions from flanges, valves, seals, and drains.
Petroleum refineries use relatively large volumes of water, especially for cooling
systems. Surface water runoff and sanitary wastewaters are also generated.
Refineries generate polluted wastewaters, containing biochemical oxygen
demand (BOD) and chemical oxygen demand (COD), phenol, oil in desalter
water, heavy metals (chrome lead and other pollutants.)
Refineries also generate solid wastes and sludges which may be considered
hazardous because of the presence of toxic organics and heavy metals.
Accidental discharges of large quantities of pollutants can occur as a result of
abnormal operation in a refinery and potentially pose a major local
environmental hazard.

Pollution Prevention and Control

Reduction of Air Emissions
Minimize losses from storage tanks and product transfer areas by
methods such as vapor recovery systems and double seals.
Minimize SOx emissions either through desulfurization of fuels, to
the extent feasible, or by directing the use of high-sulfur fuels to
units equipped with SOx emissions controls.

Recover sulfur from tail gases in high-efficiency sulfur recovery

units.
Recover non-silica-based (i.e., metallic) catalysts and reduce
particulate emissions.
Use low-NOx burners to reduce nitrogen oxide emissions.

Avoid and limit fugitive emissions by proper process design and

maintenance.

Elimination or Reduction of Pollutants

Consider reformate and other octane boosters instead of tetraethyl lead and
other organic lead compounds for octane boosting.
Use non-chrome-based inhibitors in cooling water, where inhibitors are
needed.

Use long-life catalysts and regenerate to extend the catalysts life cycle.
Recycling and Reuse
Recycle cooling water and, where cost-effective, treated wastewater.
Maximize recovery of oil from oily wastewaters and sludges. Minimize
losses of oil to the effluent system.
Recover and reuse phenols, caustics, and solvents from their spent
solutions.
Return oily sludges to coking units or crude distillation units.

Operating Procedures
Segregate oily wastewaters from stormwater systems.

Reduce oil losses during tank drainage carried out to remove water
before product dispatch.
Optimize frequency of tank and equipment cleaning to avoid
accumulating residue at the bottom of the tanks.
Prevent solids and oily wastes from entering the drainage system.
Institute dry sweeping instead of washdown to reduce wastewater
volumes.
Establish and maintain an emergency preparedness and response plan
and carry out frequent training.
Practice corrosion monitoring, prevention, and control in underground
piping and tank bottoms.
Establish leak detection and repair programs.

THE BAD STUFF IN THE CRUDE?

Sulfur
converted to elemental sulfur
in high sulfur fuel oil
in coke

Heavy Metals (nickel, vanadium)

in high sulfur fuel oil and coke

Nitrogen (organic nitrogen)

most is converted to ammonia and
neutralized
in high sulfur fuel oil and coke

WHAT ROLE DO ENGINEERS

PLAY IN THE REFINERY?

What Role Do Chemical Engineers Play?

Operations Engineer
Maintenance Engineer
Control Systems Engineer
Design Engineer
Health/Safety/Environmental Engineer
Planning / Scheduling Engineer
Reliability Engineer
Plant Manager

Other Ways Chemical Engineers Support

The Refining Industry

Research & Development Engineers

Technical Sales Engineers
Engineering & Construction Engineers
Governmental Regulators (EPA)
University Professors

Other Engineering Disciplines In The Refinery

Mechanical Engineers - design &

maintenance of compressors,
vessels
Electrical Engineers - electrical,
instrumentation, controls
Computer Scientists - main plant
control & information systems
Civil Engineers for .

Summary
Refineries are very complicated chemical
processing plants that use reactions and
separations to convert crude oil into gasoline
and other valuable products
Chemical engineers play an important role in
keeping these plants running safely and
efficiently

Petroleum Products

Glossary

API gravity
The API gravity illustrates the density of crude oil classified by the
American Petroleum Institute. The API gravity is defined as: 141.5 - 131.5/
Gravity of specific crude oil at 15.6 C. Thus, the higher the API gravity is,
the lighter is the crude oil.
Aromatics
Hydrocarbons characterized by having at least one benzene ring and
known as aromatics because of their distinctive, sweet odor. Common
aromatics include toluene and xylene.
Atmospheric crude distillation
The first step in the refining process. Before atmospheric crude distillation,
crude oil is heated up to temperatures of about 600 Fahrenheit degrees
(316 C) to 750 Fahrenheit degrees (399 C), depending on the nature of the
crude oil and desired refined petroleum products. During atmospheric
crude distillation, crude oil components are separated at atmospheric
pressure in the distillation tower. The components of crude oil vaporize in
succession at their various boiling points, then rise to prescribed levels
within the distillation tower according to their densities, condense in
distillation trays and are finally drawn off for further refining.

Glossary
Atmospheric crude distillation capacity
A maximum amount of feedstock that the atmospheric crude distillation
units of a refinery are able to process.
Aviation fuels
Jet fuels and aviation gasolines.
Barrel or bbl
Barrel of crude oil, 159 liters by volume.
Base oil
The main component of lubricant blends.
Biofuel
Gasoline or diesel fuel, which contains components derived from renewable
raw materials, such as vegetable oils and grain.
Bitumen
The residual product of crude oil vacuum distillation. A black or dark brown
solid or semi-solid organic compound that gradually softens and turns to
liquid when heated.
Bpd
Barrels per day.

Glossary

CIF
Cost, insurance and freight. A delivery term that includes the costs as well as
freight and insurance charges of the delivery of goods to a named destination
as defined in the ICC Incoterms 2000.
CO2
Carbon dioxide, a significant greenhouse gas.
Condensates
Natural gas liquids used as feedstocks in oil refining.
Cracking
The conversion of large hydrocarbon molecules into smaller ones. Cracking is
carried out either at high temperatures (thermal cracking), or with the aid of
a catalyst and high pressure (catalytic cracking and hydrocracking). The
cracking process enables greater quantities of saturated hydrocarbons
suitable for gasoline and other light fractions to be recovered from crude oil.
Distillate
Any of wide range petroleum products produced by distillation, the primary
refining step in which crude oil is separated into fractions or components.
Dwt
Dead-weight ton. A vessels cargo-carrying capacity measured in tons.

Glossary

EHVI base oil

Enhanced high viscosity index base oil, a key component of high-quality
motor oils that reduce engine fuel consumption.
ETBE
Ethyl tertiary butyl ether, ethanol based gasoline component reducing the
overall environmental impact of gasoline.
Fame
Fatty Acid Methyl Ester, conventional biodiesel produced by esterification.
Feedstocks
Crude oil and other hydrocarbons used as basic materials in a refining or
manufacturing process.
Fluid catalytic cracking
The refining process of breaking down the larger, heavier, and more complex
hydrocarbon molecules into simpler and lighter molecules. Fluid Catalytic
Cracking is accomplished by the use of a catalytic agent, which is
continuously regenerated and is an effective process for increasing the yield
of gasoline from crude oil. Catalytic cracking processes fresh feedstocks as
well as recycled feedstocks.

Glossary

FOB
Free on board. A delivery term denoting that the seller is responsible for
delivering goods on board a ship or other conveyance for carriage to the
consignee at a specified loading port as defined in the ICC Incoterms 2000.
Futura
A brand name for Neste Oils gasolines and special gasolines as well as for
diesel oils.
Gasoil
A general term for diesel fuel and heating oil.
Gasoline
A light liquid petroleum product with a boiling range of 30200_C which is
typically used as a fuel for internal combustion engines.
GHG
Greenhouse gases.
Heating oil
A fuel oil with an ignition temperature over 55 C. Heating oil is used in oilfired heating plants and boilers, and as a dieselequivalent to power some
types of machinery.

Glossary

Heavy fuel oil

Fuel oil with a distillation range of over 350 C. Heavy fuel oil is used in heat
plants, power stations and industrial furnaces.
Heavy residue hydrocracking unit
A hydrocracking unit of an oil refinery that converts vacuum residue (i.e.,
short residue) into traffic fuels.
HSEQ
Health, safety, environment, quality.
HVO
HVO Hydrotreated Vegetable Oil a highquality biofuel produced by
hydrotreating vegetable oil or animal fat.
ICC Incoterms 2000
Standardized delivery terms for goods issued by the International Chamber of
Commerce, which allocate the costs and liabilities of deliveries between
sellers and purchasers of goods.
IGO
Intergovernmental organizations.
ISCC
International Sustainability and Carbon Certification

Glossary

ISO
The International Organization for Standardization.
ISO 9001
An international standard established by the ISO to certify quality
management systems.
ISO 14001
An international standard established by the ISO to certify environmental
management systems.
Iso-octane
A high-octane and low RVP gasoline blending component derived and
produced from field butane.
LOPC
(Loss of Primary Containment) any non-planned discharge of material that
gets outside its primary containment or from area of intended use; may also
mean two products mixing by accident and not necessarily in the
environment.
LPG
Liquefied petroleum gas. A gas mixture used for fuel purposes, containing
propane, propene, butane, or butene as its main components, that has been
liquefied to enable it to be transported and stored under pressure.

Glossary

Lubricants
Fluids used to reduce friction and wear between solid surfaces (typically
metals) in relative motion. Lubricants are generally derived from petroleum.
MK-1 diesel
A Swedish diesel fuel quality. MK-1 diesel has a low density (minimum of 800
kg/m3 and maximum of 820 kg/m3 at 15 C), low aromatics content
(maximum of five volume percent), non-measurable polyaromatics content
and maximum sulphur content of 10 ppm. The 95 percent point of distillation
is more than 285 C.
MTBE
Methyl tertiary butyl ether, a high-octane component, and oxygenate, used in
the production of low-emission gasoline.
Naphtha
A low-octane gasoline product used as a feedstock by the chemicals industry,
as a feedstock for catalytic reforming, and in the production of hydrogen.
Natural gas
Any hydrocarbons or mixture of hydrocarbons and other gases consisting
primarily of methane which at normal operating conditions is in a gaseous
state.

Glossary

NExBTL diesel
Neste Oil has developed a premium-quality renewable diesel production
technology, that can use a flexible mix of vegetable oil and waste fat from the
food industry to produce premium-quality NExBTL Renewable Diesel. NExBTL
diesel is compatible with the existing vehicle fleet as well as diesel fuel
logistic system and is technically easy to blend in conventional diesels in all
rations.
NExBTL technology
NExBTL is a technology developed by Neste Oil to produce high quality
biodiesel from any vegetable oil or waste fat from the food industry. Neste
Oil's NExBTL technology allows Neste Oil to use flexible feedstocks and to
produce diesel with premium qualities.
NExETHERS and NExTAME
NExETHERS and NExTAME are Neste Oils proprietary technologies for
combined production of ethers in one unit. The technologies result in high
yields of gasoline ethers and almost total conversion of feed alcohol and offer
refiners an opportunity to maximize oxygenate production. Ethanol ethers
give an easy access for refineries to blend biofuels into the gasoline pool.

Glossary

NExOCTANE
NExOCTANE is Neste Oils proprietary technology and it converts selectively
isobutylene to premium quality gasoline.
The product comprises primarily of iso-octane that can be saturated from isooctene. Both iso-octene and iso-octane have excellent blending properties.
The technology gives a cost effective route to convert MTBE units into
production of a high-value product.
NGO
Non-governmental organizations.
NOx
Nitrogen oxides. Permanent nitrogen compounds, some of which destroy
stratospheric ozone and some of which are
greenhouse gases that may contribute to global warming.
OHSAS 18001
International standards used to certify occupational health and safety
management systems.
PAO
Polyalphaolefin. The main component of synthetic lubricants.

Glossary

Petrochemicals
An intermediate product of oil refining which is used as a feedstock for
polymers and various other chemical products.
Ppm
Parts per million.

Glossary

Probable reserves
In general, probable reserves may include (1) reserves anticipated to be
proved by normal step-out drilling where ubsurface control is inadequate to
classify these reserves as proved, (2) reserves in formations that appear to be
productive based on well log characteristics but lack core data or definitive
tests and which are not analogous to producing or proved reserves in the
area, (3) incremental reserves attributable to infill drilling that could have
been classified as proved if closer statutory spacing had been approved at the
time of the estimate, (4) reserves attributable to improved recovery methods
that have been established by repeated commercially successful applications
when (a) a project or pilot is planned but not in operation and (b) rock, fluid,
and reservoir characteristics appear favorable for commercial application, (5)
reserves in an area of the formation that appears to be separated from the
proved area by faulting and the geologic interpretation indicates the subject
area is structurally higher than the proved area, (6) reserves attributable to a
future workover, treatment, re-treatment, change of equipment, or other
mechanical procedures, where such procedure has not been proved
successful in wells which exhibit similar behavior in analogous reservoirs, and
(7) incremental reserves in proved reservoirs where an alternative
interpretation of performance or volumetric data indicates more reserves
than can be classified as proved.

Glossary

Proved reserves
In general, reserves are considered proved if the commercial producibility of the reservoir is
supported by actual production or formation tests. In this context, the term proved refers to the
actual quantities of petroleum reserves and not just the productivity of the well or reservoir. In
certain cases, proved reserves may be assigned on the basis of well logs and/or core analysis that
indicate the subject reservoir is hydrocarbon bearing and is analogous to reservoirs in the same
area that are producing or have demonstrated the ability to produce on formation tests. The
area of the reservoir considered as proved includes (1) the area delineated by drilling and
defined by fluid contacts, if any, and (2) the undrilled portions of the reservoir that can
reasonably be judged as commercially productive on the basis of available geological and
engineering data. In the absence of data on fluid contacts, the lowest known occurrence of
hydrocarbons controls the proved limit unless otherwise indicated by definitive geological,
engineering or performance data. Reserves may be classified as proved if facilities to process and
transport those reserves to market are operational at the time of the estimate or there is a
reasonable expectation that such facilities will be installed. Reserves which are to be produced
through the application of established improved recovery methods are included in the proved
classification when (1) successful testing by a pilot mproject or favorable response of an installed
program in the same or an analogous reservoir with similar rock and fluid properties provides
support for the analysis on which the project was based, and (2) it is reasonably certain that the
project will proceed. Reserves to be recovered by improved recovery methods that have yet to
be established through commercially successful applications are included in the proved
classification only (1) after a favorable production response from the subject reservoir from
either (a) a representative pilot or (b) an installed program where the response provides support
for the analysis on which the project is based and (2) it is reasonably certain the project will
proceed.

Glossary

PSE
(Process Safety Event) an unplanned or uncontrolled discharge of material
(LOPC) from a process, or an undesired event or condition that, under slightly
different circumstances, could have resulted in a LOPC of a material.
Refinery
A facility used to process crude oil. The basic process unit in a refinery is a
crude oil distillation unit, which splits crude oil into various fractions through
a process of heating and condensing. Simple, or hydroskimming, refineries
normally have crude oil distillation, catalytic reforming, and hydrotreating
units. The demand for lighter petroleum products, such as motor gasoline
and diesel fuel, has increased the need for more sophisticated mprocessing.
Complex refineries have vacuum distillation, catalytic cracking, or
hydrocracking units. Cracking units process vacuum oil into gasoline, gasoil,
and heavy fuel oil.
Reformulated gasoline
An advanced type of motor gasoline formulated to produce lower
environmental emissions than conventional gasolines.
Renewable energy
Renewable energy sources include wood and biomass, as well as solar, wind
and tidal energy, and hydroelectric power.

Glossary

ROACE
Return on Average Capital Employed, After Tax.
RSPO
Roundtable on Sustainable Palm Oil -organization.
RSB
Roundtable on Sustainable Biofuels -organization.
RTRS
Round Table on Responsible Soy -organization.
SO2
Sulphur dioxide, the combustion product of sulphur, which is formed through
the use of fuels containing sulphur.
Solvent
A liquid that is used for diluting or thinning a solution. A liquid that absorbs
another liquid, gas, or solid in order to form a homogeneous mixture.
SPE
Society of Petroleum Engineers.
Spot market
With respect to commodities such as oil, a term used to describe the
international trade in one-off cargoes or shipments of commodities, such as
crude oil, in which prices closely follow demand and availability.

Glossary

Sulphur-free fuel
Fuel with a sulphur content less than 10 mg/kg (ppm).
TAME
Tertiary amyl methyl ether, a high-octane component, or oxygenate, used in
the production of low-emission gasoline.
Ton
1 metric ton (1,000 kilograms) or approximately 2,205 pounds.
Worldscale
A standard system for assessing freight rates. A set of base charter rates is
published annually for a theoretical standard vessel plying its trade between
each of the worlds most common shipping origins and destinations. Spot
freight rates are commonly expressed as percentages of those theoretical
rates.