Crude Oil Quality A Composition Based Assessment

Presented by David Grudoski President weMeasureIt Inc.

2000, 2001 weMeasureIt inc

The Issues in Crude Oil Assessement

"At present, no mechanism exists to capture and manage quality data from each cargo lifted.

(Such information would go a long way toward achieving true quality transparency and
reducing the quality risk inherent in acquiring foreign crude oil.) The usual contractual reference to "normal export quality" is not very comforting to refiners who must run what they actually receive, regardless of the expected quality and value. This ultimately results in the value of the foreign barrel being discounted by varying amounts, depending on the refiner's tolerance for quality risk and uncertainty. In our experience, this discounting is typically greater than the actual quality valuation difference justifies (the unknown is viewed as more costly than the known, all else being equal), and in the long run reduces returns to sellers."
Manage crude oil quality for refining profitability" K.G. Waguespack, Hydrocarbon Processing,Sept.98 Vol. 77 No. 9
2000, 2001 weMeasureIt inc

What Determines Crude Oil Value?

The value of a crude oil is ultimately determined by the market value of saleable products derived from the crude. The saleable products produced are determined by the conversion capabilities of the refinery and operational conditions impacting the refining process The crude oil best able to meet or exceed the product liftings and target profit margins for the facility is the most valuable.

2000, 2001 weMeasureIt inc

Crude Oil Price vs API Gravity

30
Bonny Light East Texas

28

Alaskan NS

Minas Louisiana Lt Tiajuana Lt Isthmus

West Texas Intermediate Brent Wyoming Sweet

26

Price/BBL

24

Urals Saudi Light West Texas Sour Lost Hills

22

20

18 10

Kern River

15

20

25

30 35 Gravity (API)

40

45

50

55

How do we value crude oils?

2000, 2001 weMeasureIt inc

Pour Point vs API Gravity (Whole Crude)

From an assay database of 700 crude oils

2000, 2001 weMeasureIt inc

Sulfur Content vs API Gravity (Whole Crude)

From an assay database of 700 crude oils 30<=181 Crudes <=35API 1.9%<=29 Crudes <=2.2% Sulfur 16 Crudes meet both criteria

2000, 2001 weMeasureIt inc

Crude Oil Price vs Sulfur wt%

30
Bonny Light East Texas Minas Louisiana West Texas Lt Intermediate Brent Wyoming Sweet Alaskan NS Tiajuana Lt Isthmus Urals Saudi Light West Texas Sour Lost Hills

25 Price/bbl 20
Kern River

15

0.2

0.4

0.6

0.8

1 Sulfur (Wt%I)

1.2

1.4

1.6

1.8

How do we value crude oils?

2000, 2001 weMeasureIt inc

Crude Price vs Sulfur vs Gravity

30 28 26
Price ($$/BBL)

Bo nny L ig ht Mi nas Ea st T exa Lo s ui si ana L t West Te xas In te rme dia te Brent Wyo min g Swee t Al aska n NS Ti aj uan a Lt Isthmus Lo st Hil l s Ural s West Te xas Sour Sa udi L ig ht Ke rn Ri ve r

24 22 20 18 0 0.5

10 20 1 30 1.5 2 50 40
Gravity (API)

Sulfur (Wt%)

2000, 2001 weMeasureIt inc

Examples of Crude Oil Yield/Price Variation

West Texas Int.
API Wt% S Price 39 0.3 $27.25

Alaskan North Slope

27 1.1 $27.74

Kern River
13 1 $18.25

<650F

67.2%

50.3%

23.6%

>650F

32.8%

49.7%

76.4%

2000, 2001 weMeasureIt inc

What is Crude Quality

Crude Oil Quality can be simply defined as the agreement of properties and volumetric yields between the contractually tendered crude and the delivered crude. This quality is generally determined by the Crude Assay. An extensive analysis of the physical and chemical properties of the crude as determined by physical distillation of standard cuts and their characterization by physical and chemical analyses. In the petroleum industry, price transparency is greatly facilitated by futures exchanges (e.g.,NYMEX, IPE) and price reporting services (e.g., Platts, OPIS, Reuters, etc.), yet no similar mechanism exists for quality. Because price is tightly linked to quality, the degree of price discovery is ultimately bound by the degree of quality transparency, a fact that is often overlooked by an industry focused on the "paper" side of price risk.

2000, 2001 weMeasureIt inc

Typical Crude Assay Data

Crude Reference ID COUNTRY STATE CRUDE Misc. Info ANALYSIS QUALITY WC-Gravity, A PI WC-Sulfur, Wt % WC-Pour Point, F WC-Acid, mg KOH/g WC-Viscosity @ 40 C (104 F), cSt WC-Viscosity @ 50 C (122 F), cSt WC-Characterization Factor, K V%Yld-Butanes and Lighter V%Yld-Light Gasoline (55-175 F) V%Yld-Light Naphtha (175-300 F) V%Yld-Heavy Naphtha (300-400 F) V%Yld-Kerosene (400-500 F) V%Yld-Atm. Gas Oil(500-650 F) V%Yld-Lt Vacuum Gas Oil (650-800 F) V%Yld-Hvy Vacuum Gas Oil (800-1050 F) V%Yld-Vacuum Residuum (1050 F+) LtGasoline-Gravity, API LtGasoline-Mercaptan Sulfur, ppm LtGasoline-Octane Number, Research, Clear LtNap-Gravity, API LtNap-Mercaptan Sulf ur, ppm LtNap-Paraff ins vol % LtNap-Naphthenes, vol % LtNap-Aromatics, vol % LtNap-Octane Number, Research, Clear HvyNap-Gravity, API HvyNap-Sulf ur, w t % HvyNap-Mercaptan Sulf ur, ppm HvyNap-Paraff ins vol % HvyNap-Naphthenes, vol % HvyNap-Aromatics, vol % HvyNap-Smoke Point, mm (ASTM) Jet-Gravity, API Jet-Sulf ur, w t % Jet-Mercaptan Sulf ur, ppm Jet-Paraf f ins vol % Jet-Naphthenes, vol % Jet-Aromatics, vol % Jet-Freezing Point, F Jet-Smoke Point, mm (ASTM) Jet-Acid, mg KOH/g Jet-Viscosity @ 50 C (122 F), cSt Jet-Gravity, API AGO-Sulf ur, w t % AGO-Nitrogen, ppm AGO-Paraf fins, vol% AGO-Naphthenes, vol % AGO-Aromatics, vol% AGO-Acid, mg KOH/g AGO-Pour Point, F AGO-Viscosity @ 50 C (122 F), cSt AGO-Cetane Index AGO-Characterization Factor, K LVGO-Gravity, API LVGO-Sulf ur, w t % LVGO-Nitrogen, ppm LVGO-Naphthenes, vol % LVGO-Paraff ins, vol% LVGO-Pour Point, F LVGO-Acid, mg KOH/g LVGO-Aniline Point, F LVGO-Hydrogen, w t % LVGO-Viscosity @ 50 C (122 F), cSt LVGO-Viscosity @ 100 C (212 F), cSt LVGO-Characterization Factor, K HVGO-Gravity, API HVGO-Sulf ur, w t % HVGO-Nitrogen, ppm HVGO-Pour Point, F HVGO-Acid, mg KOH/g HVGO-Aniline Point, F HVGO-Hydrogen, w t % HVGO-Viscosity @ 50 C (122 F), cSt HVGO-Viscosity @ 100 C (212 F), cSt HVGO-Characterization Factor, K AtmResid-Yield, vol % AtmResid-Gravity, API AtmResid-Sulfur, w t % AtmResid-Nitrogen, ppm AtmResid-MCRT, w t % AtmResid-Asphaltenes, w t % (C7 Insolubles) AtmResid-Nickel, ppm AtmResid-Vanadium, ppm AtmResid-Pour Point, F AtmResid-Viscosity @ 50 C (122 F), cSt AtmResid-Viscosity @ 100 C (212 F), cSt AtmResid-Characterization Factor, K VacResid-Yield, vol % VacResid-Gravity, API VacResid-Sulf ur, w t % VacResid-Nitrogen, ppm VacResid-Hydrogen, w t % VacResid-MCRT, w t % VacResid-Ramsbottom Carbon, w t % VacResid-Asphaltenes, wt % (C7 Insolubles) VacResid-Nickel, ppm VacResid-Vanadium, ppm VacResid-Iron, ppm VacResid-Pour Point,F VacResid-Viscosity @ 50 C (122 F), cSt VacResid-Viscosity @ 100 C (212 F), cSt VacResid-Viscosity @ 135 C (275 F), cSt VacResid-Cutter, vol % in Fuel Oil VacResid-Fuel Oil Yield, vol % VacResid-Characterization Factor, K

This is the initial information used by Planners to develop operating plans for plants and facilities

2000, 2001 weMeasureIt inc

TBP Distillation Curve

100 90 80
Yield (Wt %) Resid Vacuum Gas Oil Atmos Gas Oil

Product Yields

70 60 50 40 30 20 10 0
Naphtha/Gasoline Kero/Jet Diesel

Distillate Cut Point

200

400

600

800

1000

1200

Boiling Point (F)

2000, 2001 weMeasureIt inc

SIMDIS Signature of a Crude Oil

0.4 0.35 0.3
Yield (Wt %)

Arabian Lt Crude Oil

0.25 0.2 0.15 0.1 0.05 0

200

400
Boiling Point (F)

600

800

1000

1200

2000, 2001 weMeasureIt inc

A Chromatographic View of Distillate Fractions

0.4 0.35

Naphtha/Gasoline Kero/Jet

0.3
Yield (Wt %)

0.25 0.2 0.15 0.1 0.05 0

Diesel Atmos. Gas Oil Vacuum Gas Oil

Residum
0 200 400 600 800 1000 1200

Boiling Point (F)

2000, 2001 weMeasureIt inc

Crude Unit Optimization can be worth $3-$6million /year

Cr ude Unit 1 Cutpoints MSR/JET CP 300-350 JET/DSL CP 450-490 DSL/ISO CP 550-590 Lim it Cost $/bbl shift $0.52 Hit Max CP $0.06 Hit Max CP ($0.01) Hit Min CP

ISO/FCC CP 730-780
FCC/RES CP 930-960 Cr ude Unit 2 Cutpoints MSR/JET CP 300-350 JET/DSL CP 450-500 DSL/ISO CP 550-590

$4.22 /bbl to increase

$6.20 Hit Max CP

Lim it Cost $/bbl shift $0.00 Floating on CP $0.00 Floating on CP ($0.24) Hit Min CP

ISO/FCC CP 730-790
FCC/RES CP 920-940

$3.85 /bbl to increase

$0.04 Hit Max CP

Bette r Measurem ent Techniques (SIMDIS) allow us to incr ease Isom ax/FCC cutpoint by 20 F and stay w ithin Isom ax catalyst lim its. Res ult: More conve rsion capacity and higher valued pr oducts. Es timate d value of 3 to 6 m illion $/year
2000, 2001 weMeasureIt inc

The Value of Accurate Cut Points

0.4 0.35 0.3
Yield (Wt %)

0.25 0.2 0.15 0.1 0.05 0

Shift of 10F in Cutpoint is worth $1.00/BBL

200

400

600

800

1000

1200

Boiling Point (F)

2000, 2001 weMeasureIt inc

Molecule

New Process Models Assign Value to Specific Compounds

2000, 2001 weMeasureIt inc

Des tinations Mogas Pr opane ($111.30) Iso Butane ($15.30) Nor m al Butane ($2.80) Iso Pentane $16.90 Nor m al Pe ntane $12.50 Cyclo pe ntane $24.70 Di-Methyl Butane $25.50 2 Methyl Pentane $21.00 3 Methyl Pentane $21.80 Nor m al he xane $11.70 Me- cyclo pentane $20.90 Cyclohexane $19.90 Benzene $29.70 C7 Iso Par affins $19.60 C7 Nor m al Paraffin $8.60 C7 Naphthenes $19.30 Toluene $32.40 C8 Iso Par affins $16.10 C8 Nor m al Paraffin $7.70 C8 Naphthenes $17.80 C8 Ar omatics $32.80

The Value of Compositional Measurements

Process Destination
Mogas Blend Pool
Dimethyl-butane

Aromatics Conversion

$25 /Bbl
Cyclohexane

$16 /Bbl

$30 /Bbl

$35 /Bbl

Molecular transformations have differential values

2000, 2001 weMeasureIt inc

Carbon/Hydrogen Measurements
Carbon Hydrogen Elemental Signature -Heavy Gas Oil
0.025

CH SIMDIS for Heavy Gas Oil

100 90 Total CH Carbon Hydrogen

Element Relative Response

Cumulative Yield Wt%

400 600 BP (F) 800 1000

0.02

Total CH Carbon Hydrogen

80 70 60 50 40 30

0.015

0.01

0.005
CH Adjusted Response Curves

20 10 0 400 600 BP (F) 800 1000

200

When properly configured the GC-AED provides a direct measure of the C/H ratio of petroleum streams
2000, 2001 weMeasureIt inc

20

15

10

C179 S181

Metals in FCC Feed

5 0 400 500 600 700 800

900 BP (F )

1000

1100

1200

1300

1400

High Temperature AED Signatures for C,S,Ni,V

30

Richmond Re fine ry FCC Total Feed 3 /2 9/99

0.35

25

0.3

4 ppm Total Ni
20
0.25

15

0.2

V292 Ni301

0.15

10

C179 S181

0.1

5
0.05

0 400

500

600

700

800

900 BP (F )

1000

1100

1200

1300

1400

0 400

500

600

700

800

900 BP (F )

1000

1100

1200

1300

1400

0.35

0.3

Ni and V in FCC Feed

4 ppm Total Ni

0.25

Determined by HT-GC-AED

0.2

V292 Ni301

0.15

0.1

2000, 2001 weMeasureIt inc

0.05

Process Variation

QuickTime an d a Video d ecompressor are need ed to see this picture.

2000, 2001 weMeasureIt inc

Monitor Process Variation

0.9
Va riation of Isomax Proces s Stre ams

0.8 Iso Heavy 0.7 0.6

0.5

0.4

0.3 HDN Product 0.2 Iso Jet 0.1 Iso Light HDN Feed Splitter Btms 0.8 1

0 -0.6

-0.4

-0.2

0.2

0.4

0.6

2000, 2001 weMeasureIt inc

Monitor Process Variation

1 HDN Pr d 6/11 Target: HDN Prd 6/11 0.9 HDN Prd 5/14 Distance=6.2708 0.8

0.7

0.6

HDN Prd 4/30 Distance=6.8198

0.5

0.4

HDN Prd 6/4 Distance=7.2625

0.3

0.2

HDN Prd 5/7 Distance=7.2798

0.1

500

1000

1500

2000, 2001 weMeasureIt inc

Fingerprinting
1 FCC HCO Source: FCC HCO 0.9 FCC HCO

0.8

0.7

0.6

FCC HCO

0.5

0.4

FCC HCO

0.3

0.2

FCC HCO

0.1

500

1000

1500

2000, 2001 weMeasureIt inc

ARAB EXTRA LIGHT

Crude Oil Signature

ARABIAN MEDIUM

Here we show Carbon and Sulfur SIMDIS signatures as an archival record of the composition of crude oil (GC-AED Methodology)

ARABIAN HEAVY

2000, 2001 weMeasureIt inc

Crude Oil Characterization

200 100 0 300 200 200 100 0 200 400 600 800 1000 0 0 0 200 400 600 800 1000 150 80 20 10 0 60 40 20 0 200 400 600 800 1000 0 0 0 200 400 600 800 1000 0 200 400 600 800 1000 100 50 0 200 400 600 800 1000 400

30

Crude A (Asian)

Crude B (Mid-East)

Crude C (South American)

Carbon and Sulfur Distributions in Crude Oils

2000, 2001 weMeasureIt inc

Crude Oil Signatures

WEST TEXAS EU GENE ISLAND MIRI LIGHT KU WAIT EXP GREEN CAN YON

ALASKAN NORTH SLOPE

BR UNEI

VENTUR A PIPELIN E

LAGO TRECO

ALASKAN NORTH SLOPE

NIGER IAN MEDIUM

NIGER IAN H EAVY

WEST TEXAS WEST TEXAS INTERMED IATE AMOCO PIPELIN E

KU TUBU EXPORT BLENDPALAN CA EXPORT

RIO NEGR O

SOUDIE

WEST LINAPAKAN

KU WAITI

ORITO

CAAMAR

AR CO PIPELINE 63 BEAR RIVER BLEND

CANADON SECO

ESCRAVOZ

OMAN

LENNOX

URALS EXPOR T

Reference Crude Oil Library

2000, 2001 weMeasureIt inc

Crude Oil Fingerprinting

1 KUWAITI Target: KUWAITI 0.9 ARABIAN HEAVY Distance=4.8828 0.8

0.7

0.6

ARABIAN MEDIUM Distance=4.9904

0.5

0.4

KUWAIT EXP Distance=5.1902

0.3

0.2

IRANIAN LIGHT Distance=5.5716

0.1

500

1000

1500

2000, 2001 weMeasureIt inc

2D Map of the Sample Universe

J I

This plot presents a visualization in a 2D mathematical space of the chromatographic profiles for 1650 samples

2000, 2001 weMeasureIt inc

Identification and Extraction of Similar Samples-Crude Oils

Source: KU WAIT EXP J

2D Map of the Sample Universe (n=1650)

I 4.4 ARABIAN MEDIUM H

G 5.2 KUWAITI

5.2 IRANIAN LIGHT

B 6.1 KUWAITI A

Here we show the utility of our approach to automatically extract the samples from the data base having the greatest similarity to the source sample
2000, 2001 weMeasureIt inc

Identification and Extraction of Similar Samples-Naphthas

Source: Hv y H eart2/12 J

2D Map of the Sample Universe (n=1650)

I 7.6 Hv y Heart2/26 H

G 8 Hv y Heart2/19

8.5 Hv y Heart 3/3

B 10 H v y Heart Cut A

Here we show the utility of our approach to automatically extract the samples from the data base having the greatest similarity to the source sample
2000, 2001 weMeasureIt inc

Thanks for the Opportunity

2000, 2001 weMeasureIt inc