HYDROCARBON MANAGEMENT

HM 31 GUIDE TO HYDROCARBON MANAGEMENT

IN PETROLEUM REFINERY OPERATIONS
 HYDROCARBON MANAGEMENT

HM 31 GUIDE TO HYDROCARBON MANAGEMENT

IN PETROLEUM REFINERY OPERATIONS

2nd edition
April 2004

Published by
ENERGY INSTITUTE, LONDON
The Energy Institute is a professional membership body incorporated by Royal Charter 2003
Registered charity number 1097899
The Energy Institute gratefully acknowledges the financial contributions towards the scientific and
technical programme from the following companies:

Amerada Hess Ltd ExxonMobil International Ltd

BG Group Kerr-McGee North Sea (UK) Ltd
BHP Billiton Limited Kuwait Petroleum International Ltd
BP Exploration Operating Co Ltd Murco Petroleum Ltd
BP Oil UK Ltd Shell UK Oil Products Limited
ChevronTexaco Ltd Shell U.K. Exploration and Production Ltd
ConocoPhillips Ltd Statoil (U.K.) Limited
Conoco UK Ltd Talisman Energy (UK) Ltd
ENI Total E&P UK plc
Enterprise Oil plc Total UK Limited

Copyright © 2004 by the Energy Institute, London:

The Energy Institute is a professional membership body incorporated by Royal Charter 2003.
Registered charity number 1097899, England
All rights reserved

No part of this book may be reproduced by any means, or transmitted or translated into a machine language without the
written permission of the publisher.

The information contained in this publication is provided as guidance only and while every reasonable care has been taken
to ensure the accuracy of its contents, the Energy Institute cannot accept any responsibility for any action taken, or not
taken, on the basis of this information. The Energy Institute shall not be liable to any person for any loss or damage which
may arise from the use of any of the information contained in any of its publications.

The above disclaimer is not intended to restrict or exclude liability for death or personal injury caused by own negligence.

ISBN 0 85293 415 7

Published by the Energy Institute

Further copies can be obtained from Portland Customer Services, Commerce Way,
Whitehall Industrial Estate, Colchester CO2 8HP, UK. Tel: +44 (0) 1206 796 351
email: sales@portland-services.com
 CONTENTS

Page

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Refinery material balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Basis of the balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.3 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.4 Material balance example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.5 Process operating losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.6 Accounted loss table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.7 Loss monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.8 Loss reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3 Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.2 Stock measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.3 Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.4 Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.5 Mass and weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

4 Measurement and evaluation of fuel consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.2 The refinery fuel system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.3 Fuel measuring systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.4 Mass and energy balance checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.5 Maintenance of fuel systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

v
Contents Cont.... Page

5 Flare systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.2 Flare systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.3 Pilot gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.4 Purge gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.5 Flare gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.6 Flare surveillance/flare steam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.7 Flow measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.8 Flare gas recovery systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.9 Flare reduction and monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

6 Tankage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
6.2 Physical loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
6.3 Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

7 Loss from process units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

7.1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
7.2 Losses to flare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
7.3 Losses from aqueous streams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
7.4 Hydrocarbon leaks to atmosphere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
7.5 Losses during shutdown and startup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
7.6 Losses during process upsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
7.7 Processing losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

8 Slops system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
8.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
8.2 Sources of slop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
8.3 Slop handling facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
8.4 Segregation of slops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
8.5 Measurement and management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

9 Statistics in hydrocarbon management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

9.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
9.2 Component uncertainties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
9.3 Overall loss uncertainty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
9.4 Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
9.5 An alternative historical method of estimating the uncertainty of refinery loss data . . . . . . . . . . . . . . 48

Annexes
Annex A - Direct mass metering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Annex B - Procedures for making allowance for pipeline contents during a product transfer . . . . . . . . 53
Annex C - References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Annex D - Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

vi
 FOREWORD

The Hydrocarbon Management Advisory Group (HMAG) of the Energy Institute (EI) is responsible for the
production and maintenance of documents covering the various aspects of hydrocarbon management.

Membership of the HMAG is made up of representatives from oil companies, equipment manufacturers, cargo
inspectors, technical development organizations, HMC&E, National Weights and Measures Laboratory, regulatory
authorities and independent consultants. Liaison is maintained with parallel working groups and committees of the
American Petroleum Institute and is extended where appropriate to embrace other organizations in other countries
concerned with hydrocarbon management.

The IP Guide to Hydrocarbon Management in Petroleum Refinery Operations is recommended for general adoption
but should be read and interpreted in conjunction with weights and measures, safety and other regulations in force
in the particular country in which it is to be applied. Such regulatory requirements shall have precedence over
corresponding clauses in the Guide except where the requirements of the Guide are more rigorous, when its use is
recommended. The Energy Institute disclaims responsibility for any personal injury or loss or damage to property,
howsoever caused, arising from the use or abuse of any Part or Section of the Guide to Hydrocarbon Management
in Petroleum Refinery Operations.

A number of other guidelines and standards published by the Energy Institute, The American Petroleum Institute,
International Standards Organization and other guidance and standards development organizations are called up
in this Guide and a list is given in Annex C. Users should ensure that the latest editions of these documents are used.

From 2004 all IP Petroleum Measurement Manual Parts and IP Petroleum Measurement Papers have been
renumbered as Hydrocarbon Management guides.

In line with EI policy the comma is used as the decimal marker.

Users are invited to send comments or details of experience with the use of this document to:

Technical Department
Hydrocarbon Management Section
Energy Institute
61 New Cavendish Street
London
W1G 7AR

vii
 ACKNOWLEDGEMENTS

The following have been associated with the production of this document

Dave Brown Petroplus Teesside Refinery

Steve Cannon Chevron Texaco Pembroke Refinery
Bob Carson Esso Fawley Refinery
Arnie Codd Conoco Phillips Humber Refinery
Dave Edge Shell Stanlow Refinery
Tim Goatcher Shell Stanlow Refinery
Peter Goodsell BP Oil International
David Hair BP Oil Grangemouth Refinery
Ronnie King BP Oil Grangemouth Refinery
Gerard Knight Total Lindsey Oil Refinery
Jean Martin Total Milford Haven Refinery
Mick Martin BP Oil Coryton Refinery
John Phipps Consultant (editorial)
Silvia Ragucci Saras Refinery Sardinia
Phil Raven Total Lindsey Oil Refinery
Tudor Rees Independent Consultant and Chairman
Mike Torrens Esso Fawley Refinery
Alan Thorogood Independent Consultant and Secretary
Rob van der Velden Kuwait Petroleum Refinery Europoort
Neil Watson Conoco Phillips Humber Refinery
Alison Walker Conoco Phillips Humber Refinery

Company affiliations are those at the time the document was being prepared.

viii
 PREFACE

This Guide to Refinery Hydrocarbon Management summarises what is currently considered by company
representatives from the UK Refineries and other members of the Energy Institute’s Hydrocarbon Management
Refineries Panel to be 'best practice' in the areas of operation, accounting, hydrocarbon measurement and loss
control. It is not intended that the methods and statements contained herein should be regarded as representing the
only approach to monitoring and managing hydrocarbons, but rather the techniques described are proven, practical
and effective.

The Guide does not attempt to cover in detail the individual methods of measurement, sampling etc. that are
recommended for optimal hydrocarbon management. Wherever possible, recognised best industry practice standards
or procedures have been cross-referenced.

Good management of hydrocarbons can offer significant cost savings for the operator and assist in reducing
environmental impact. The precept behind the approach adopted in this document towards hydrocarbon
management is:

'To manage we have to control.

To control we have to measure'

With this in mind much of the Guide is dedicated to the principles and effects of measurement on the accounts
(yield) figures and an understanding of the errors and inaccuracies that may be involved. This should in turn lead
to better management of the hydrocarbon inventory. It should be noted that quantitative 'loss' data do not equate
to Volatile Organic Compound (VOC) emission figures.

There are, however, in hydrocarbon management, other influences that are perhaps less obvious, but equally
important, such as personal motivation and management commitment. These may be influenced by internal
company factors and by external legislation constraints.

Obviously the design status of plant and equipment, and the monitoring of their condition are important elements
in hydrocarbon management. High standards, if applied, make a significant contribution to minimising loss.
Experience suggests though, that motivation is a driver that has the largest impact. To be effective this motivation
needs the full support of management and, with that, the full co-operation of the work force.

High levels of publicity of both the financial and environmental impacts of sub-optimal hydrocarbon management
together with the recognition of the benefits of improved hydrocarbon management and control may be associated
with some form of incentive scheme, publicising targets and achievements, and could involve a performance-related
salary element.

ix
 HM 31 GUIDE TO HYDROCARBON MANAGEMENT IN PETROLEUM REFINERY OPERATIONS

Training in best practice procedures also has an important part to play by increasing awareness and raising operating
standards.

Editorial Note: This document is an updated and revised version of the internationally recognised Guide to
hydrocarbon loss accounting and control in petroleum refinery operations that was originally published by the
Institute of Petroleum as Part XVII of the IP Petroleum Measurement Manual in 1995. The IP Petroleum
Measurement Manual was first issued in 1952, and has always provided guidance on what constitutes best
measurement practice in the petroleum industry and in some cases, specifications for the accuracy and repeatability
of the measurement instrumentation are recommended. Measurement accuracy is fundamental to good hydrocarbon
management, and its importance was emphasized by the inclusion of the following text in the Foreword to the
previous edition:

Measurement accuracy is essential for the sale, purchase and handling of petroleum products. It reduces
the likelihood of disputes between buyer and seller, and facilitates the control of losses. Accurate
measurement involves the use of standard equipment and procedures.

This statement remains as true today as when it was first made in 1952, and its sentiments are to be commended to
all users of this document.

x
 1
SCOPE
Hydrocarbon management in the oil industry involves
the identification and quantification of losses and the
institution of measures for their control based on
environmental, financial and regulatory considerations.
Hydrocarbon accounting at refineries is a complex
subject owing to a combination of factors, for example:-
the large quantities of crude oils and other feedstocks
that are processed; the multiple processing stages in
modern refineries; the difficulty in measuring
accurately certain process streams; the numerous
storage tanks required for feedstocks, intermediates and
finished products; the multi-modal nature of product
deliveries and the uncertainties of each measurement.
As a result, refinery hydrocarbon management is
faced with several problems:
— Establishing a meaningful hydrocarbon accounting
system.
— Reconciliation of estimated loss data with actual
accounting data for the refinery.
— Statistical assessment of accounting data.
— Identification of all the ways in which real and
apparent losses can arise at a refinery.
— Quantification of each individual source of loss,
often required on a plant-by-plant basis.
— Setting meaningful management objectives.
— Investigation of any apparently excessive losses.
Resulting from a cooperative programme by the UK
refineries with input from European colleagues and
associates, these comprehensive guidelines have been
prepared that offer refineries procedures for identifying,
accounting for and reducing losses appropriate to their
refinery's configuration. The basis of establishing a
material balance for a refinery is described and the
document assesses the uncertainties of each component
of loss and/or measurement.
The document provides a systematic loss
accounting system that, if observed, will generate data
that enable refinery management objectives to be set
and monitored and meaningful inter-refinery
comparisons of losses to be made. Numerical examples
are provided, based on average accounting balances
taken from the UK refineries. An assessment is made of
the uncertainty of the overall loss figure. Contributions
of individual sources of loss to the overall figure are
evaluated.
The Guide examines and analyses the material
balance of a refinery, using actual static and dynamic
measurement as far as possible, plus estimating
procedures where direct measurement does not exist or
is impractical. In addition, the Guide draws attention to
potential sources of refinery loss and describes ways in
which they may be controlled. Particular attention is
paid to specific areas of hydrocarbon management
including the estimation and measurement of refinery
fuel consumption, losses from flare systems, process
losses and the operation of refinery slop oil systems. It
includes discussion on aspects of the design, operation
and maintenance of plant and equipment that influence
hydrocarbon management.