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Refining Prof. Metin Metin Prof.    Outline To use this in your own course/training, please obtain permission from Prof. Prof. from permission Toobtain please course/training, own your in this use Optimization of Operations Refinery of Optimization Refining Markets: Capacity, Cost, Investment processes Refinery If If you find any inaccuracies, please contact [email protected] for corrections. Çakanyıldırım used various resources to prepare this document for teaching/training. teaching/training. for document this prepare to resources various used Updated in Springin 2020 Updated Çakanyıldırım .

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metin /~ Crude Oil communication systems;Roadswalks;Railroads; and Buildings. protectioncontainmentwaste systems;Flare,and drain systems; Plant facilities; Watersupply, treatment, disposal;Plant air systems;Fire Offsite Facilities:Electric powerdistribution; fueloil andFuel gas Asphaltics Aromatics ( Cycloalkanes ( Naphthenes Paraffins ) ) Wght % 15 49 30 6  Inputs:

Crude Oils , Fuels,LPG,Chemicals Refinery Complex Refinery Onsite Facilities

Outputs Chemicals Gas Liquefied Jet Gasoline and Final Products Heating Fuels Heating

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metin /~ Inland Refinery: Holly Frontier’s Tulsa 2. Oil is offloaded is 2. Oil Storageto Tanks refinery Tulsathe encircling broughtbyrailwaysoil 1. Crude 0. Tulsa barrels/day K 443 capacity Refinery CO; all inland and complex HFC headquartered. Dallas revenue, $8 Billion HollyFrontier Cooperation (HFC) has refineries also in NM, in alsoKS, has refineriesWY, HFC’s capacity 125 K barrels/day K 125 capacity Tulsa Refinery publicly traded, 2.Storage Tanks2.Storage 1. Railways 1. 0. Refinery 0. Arkansas River Oklahoma City Northwest of 105 miles 105 miles

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metin /~ Crude Oil Operations,OilCrude Refining Operations, 1. Railways or Pipeline Final ProductFinal Storage Railwaysor Pipeline Crude Oper 3. Staging Oil I. I. Tanks . 2. Storage Tanks Crude DistillationCrude Unit Other Refinery Units Refining Oper II. Storage Tanks Final Product . Refining operations are continuous processes products. usableto crudeofprocess converting the is Refining up or pipeline shipments up or pipeline Until if done in parcelsin if done processes discrete are oil operations Crude Store Crude in Storagein Store Crude Receive Use Staging Tanks Staging Use Pump Crude to the Unit 4 processes, to be detailed later detailed be to processes, 4 Capacity with 10 days of thruput 10 dayswith Capacity 15- risk unavailability crude Hedge against Parcels in or Continuous Remove crudes different Mix Hedge against input unavailability input Hedgeagainst 3- train, tanker truck, tanker ship pick day day 4 day Final ProductStorage CrudeOil Operations Crude Shipments Crude Shipments Refining Operations thruput Brine (Salts) thruput storage often adequate adequate often storage storage often adequate often storage Tanks

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metin /~    As rising, it cools & condenses on trays.condenses on & cools rising, it As distillation tower H temperatures – – – – – – – – eated At At temperature. when heated, but solidifies in room Residue (bottom) isasphalt & At 600 At 170 gasoline. At 120 At 20 Around 120 Around 70 out from its tray. out from its tray. (fractioning) column. exit fromthe top of the distillation are octane (8C),Liquidsoctane are crudeturns into vaportherises and in pentane (5C),hexane (6C), (3C), (4C) (1C), (2C), 20 o o Crude Distillation Unit (CDU) Crude DistillationUnit o C, C C. . o o C C in crudehave boiling are 1C Some ofSome 5C , condenses & flows , Kerosene condenses & flows o (≈ C o -4C arein the gas phase and C boilingcycloalkanes: are 30 10-30 boiling is heptane(7C).boiling is - few 9C exit as gas, some as as some gas, as exit 9C metres different boiling - alkanes: nonane ). (9C) Source: www.energyinst.org.uk

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metin /~ Crude Oil Crude facilitates boiling 1. DistillationProcess: Low pressure Dehydration and Heating 1.A. Atmospheric towers & 1.B.Vacuumtowers Reduced Pressure Unit Distillation Tower Atmoshpheric Pressure 150- 340- 230- < 30 30- > 430 1. Distillation 1. 150 230 430 340 o C o C o o o o C C C C Intermediate ProductsIntermediate Butane C Butane Gasoline (low octane) octane) (low Gasoline (No. 5 (No. (No. 1 (No. Residual Fuel Oil Fuel Residual Heavy Gas Oil Heavy Gas Light Gas Oil Gas Light Kerosene and - - 6 Fuel Oil) Fuel 6 4 Fuel Oil) Fuel 4 4 Physical and lighter and

Further processing Further processing 2-4

2-4 separation Refinery fuel gas, propane, propane, gas, fuel Refinery NGLliquids) gas (Natural Gasoline (high octane), octane), (high Gasoline octane), (high Gasoline octane), (high Gasoline Gasoline (high octane) (high Gasoline Kerosene, Jet fuel, Jet Kerosene, Final Products Final Lubricants, WaxLubricants, Diesel, Fuel oil, oil, Fuel Diesel, Diesel, Fuel oil Fuel Diesel, Diesel, Fuel oil Fuel Diesel, Diesel, Fuel oil Fuel Diesel, Jet fuel Jet

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metin /~ Gasoline (low octane) octane) (low Gasoline Intermediate Intermediate (No. 5 (No. (No. 1 (No. Residual Fuel Oil Fuel Residual Butane and lighter and Butane Heavy Gas Oil Heavy Gas Light Gas Oil Gas Light Products Kerosene Naphtha Asphalt - - 6 Fuel Oil) Fuel 6 4 Fuel Oil) Fuel 4 Decompose (Crack), Unify, Reform 2. Conversion Processes: Isomerization Reforming Coking Processes Cracking Cracking Thermal Cracking Catalytic Capturing gasses gasses Capturing Vapor Recovery physically

Coke 3. Treating & 4. Blending with green hue green with : Similar to to : Similar Premium Gasoline Final Products Final Regular Gasoline Regular Refinery fuel gas gas fuel Refinery Heating/Fuel oil Heating/Fuel Lubricants oils Lubricants Propane Propane Greases Asphalt Jet fuel Jet Diesel NGL Coal Coal

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metin /~  Cracking: Cracking:   2. Conversion Process Descriptions2. Conversion Process Catalytic Catalytic Cracking: Thermal      Hydro cracking: Hydro ( (FCC): Using cracking catalytic Fluid Coking: Visbreaking Steam Breaking . cracking: cracking: Coke - cracking: oil and coke. and oil heavy to obtain residue crack to heat extremeUsing Kerosene Gasoline LPG Other: Diesel (Gasoil) Diesel is down heavier and larger HCs into lighter and smaller HCs. smaller and into lighter HCs larger and heavier down & & : Use zeolites zeolitesUse sent Using moderate heat to crack with the purpose of reducing viscosity reducing of purpose the with crack to heat moderateUsing 2.A. 2.A. Using heat Using heat crack. to to Using water (hydrogen) as catalyst as (hydrogen) water Using Using steam to crack; crack; to steamUsing Using a catalyst temperature. high under catalyst (facilitator) Using a gas, coal naphta power plants to be mixedwith coal and burnt ↑ ↑ Cracking kerosene , residue,coke gasoline yield. yield. yield yield sound- like steam flooding EOG.in flooding steamlike cracking catalytic aluminium Fluid Fluid 45% 17% 14% 23% 1% + silicates) powder as as catalyst powder + silicates) cracking Hydro Hydro 40% 12% 38% 6% 4%

Based on Figure 240 on p.171 of GOGI.

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metin /~     Isomerization Alkylation Reforming Higher Octane Level 2. B. Reform and 2.C. 2. B.Reform – – – – – – 2. Conversion Process Descriptions2. Conversion Process This increase the octane level. octane the increase This This yields larger molecules with higher octane levels. octane higher with molecules larger yields This E.g.:Methaneoctane number has 120. morepressurebe therecan resistantAs octaneHCs, levels Octanelevelsdefined are relative to Levelindicates withstand the amountcanpressureHC of before a self is obtaining is obtaining (saturated) alkanes ones. HCs from non-saturated is obtaining is cyclic is changing the geometry . of the geometry the is changing ⇒ Better pressure. under Better HCs iso-octane. from chains. Combine (Unify) > 100 ok for them.100 ok C C C C ignition. -ignition. C C C C C C C C C 1 C C C Iso 3 2 4 - octane 5 C C C C C 6 7 C C 8 C C C C

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metin /~ 3. Treatment3. – – Dewaxing to avoid solidificationunder low temperature and to improve gasoline flow in winters. Removingunwanted substances: Salt, » » 1. Distillation Distillation 1. : Preparation of HCs and finished products by using chemical / physical separation. physical / chemicalusing by products finished and HCs of Preparation : fertilizer) in pharmaceuticals.and Somesulfurremain fuelcoke.can oilandin Desalting  3. Treating 2. Conversion  : removalyields elemental sulfur that is used in agriculture (as Suplhur , nitrogen, oxygen,metalsmercury)(lead,

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metin /~ 4. 4. 1. 1. Exhaust Blending Distillation Distillation Intake : Mixing of HCs in certain fractions to obtain finished products with specific properties. specific with products finished to obtain fractions HCs of certain : Mixing in  Power 2. 2. Compression Conversion Four cycle engine: engine: cycle Four position twice to complete 4 4 steps complete twice to position Piston goes same the back to goes Piston 4. 3. 2. 1. Exhaust Power Compression Intake (injection)  4. Blending Spark Plug Spark Plug Ignition 3. Treating Treating Ignition 4 - step engine: step Power  Compression Exhaust Intake

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metin /~   Corrosion   Properties: Ignition Liquid gasoline is hard gasoline to Liquid burn. neutralize the acid in the crude. Crude with with Crude crude. the in acid the neutralize Number)Acid TAN (Total level: Sulphur RVP has mostlyGasoline : level Octane – – – – – – – 4. BlendingforSpecificProperties EPA EPA Temperature A High High octanerating Similarly octane number 80indicates the samecombustionproperties 80%as octane and 20% heptane. Gasoline withcombustion octane numbersame propertiesthe 90has as (Reid Vapor Pressure) Pressure) Vapor (Reid Properties: » » » » fuel injector want RVP RVP RVP of 6 psi RVP Injector Knocking:     s ; less RVP, gasoline remains as liquid and does not burn.of 12psi for Fargo,not Northdoes liquid Dakota andgasoline remains inwintersRVP,as ; less ⇒ Crude with > with Crude less RVPto reduce evaporative emissions. Sport cars:high compression ratio engines toobtain morepower Compression ratio = Thepressuregasolinethe high engines on with is in highcompression ratio Self ↓ Liquid vaporizeseasily. 12 psi RVPneeds 6-12psi sprays gasoline & oxygengasolinesprays & – ⇒ -ignition is morelikely if the pressure on the gasoline is high Self Sport carsneed less combustible gasoline, which ishigh octane gasoline for for RVP RVP ⇒ Ignition -Ignition smooth & sustained combustioncombustiblesmooth& less with gas Dallas ↑ is the concentration of potassium hydroxide (KOH, a base) needed to to (KOH, needed abase) hydroxide potassiumof concentration the is measures the surface pressure to keep a liquid (gasoline) from vaporizing. vaporizing. from (gasoline) aliquid to keep pressure surface the measures 0.5% Sulphur in summersgasolineRVP, vaporizesmorepumping while ; of gasoline Spraying charcoal igniter liquid on on liquid igniter charcoal Spraying Lowest Highest ; octane C octane Low RVP ⇒ RVP Low volume volume into the engine blockpressure the and into right mixthe at on is corrosive (sour). corrosive is 8 its own before TAN H 18 of of the and some an > engine Liquid does not vaporize easilyLiquidnot does engine 1 mg KOH/g mg 1 The limits arestricter during the summerozone season. block block spark plug ignition.spark heptane C heptane is corrosive. barbeque 90% 7 H 16 ⇒ iso-octane & others. high risk of selfhigh risk of to avoid knockingto ok, if the liquid is cold. cold. is liquid the ok, if and 10% heptane. for combustion. -ignition

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metin /~ 4. 4.  Blending      : level Octane characteristic characteristic These linear blending computations are assumed to be valid for sulfur content, TAN &    Suppose we are Suppose we 20-80 Blending of 90octane gasoline with 80octane gasoline yields 82octane gasoline. 50- Blending of 90octane gasoline with 80octane gasoline yields 85octane gasoline. Gasoline with different blendedbeoctanelevels can gasoline80 octanegasoline and toobtain octane88 gasoline? :   The nonlinearTheWilliam suggested blendingJackson,Merit18. equation by is above There also is a Take a 88 82 weighted average 𝐶𝐶 = = 4. BlendingComputations 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 90𝑥𝑥 ( 0 .2 , we obtain we, it fromthe characteristic selling mid-grade gasoline octane.88 with ) nonlinear + 90 80( + 1 ( 0 − .8 but moreexact formula for RVP: of characteristics where characteristics of 𝑥𝑥 ) 80 ) 𝐶𝐶 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 gives = 𝑥𝑥 = 𝑖𝑖 ∈Ingredient 0 .8 � . weights becan relative volumes (weights) ∑ 𝐶𝐶 𝑖𝑖 𝑗𝑗 ∈Ingredient of the ingredient 𝑉𝑉 In what proportionsoctanewhat 90 blendIn shouldwe 𝑖𝑖 𝑅𝑅 𝑃𝑃 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑉𝑉 𝑗𝑗 𝐶𝐶 𝑖𝑖 = 𝑖𝑖 by using byvolume (or weight) ∑ 𝑖𝑖 ∑ 𝑗𝑗 𝑉𝑉 𝑉𝑉 𝑖𝑖 𝑗𝑗 RVP 𝑅𝑅 𝑃𝑃 , i.e., for a a for i.e., , 𝑖𝑖 1 . 25 1 . 1 25 𝑉𝑉 𝑖𝑖 .

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metin /~ Preference for Alcohol over LeadEngines thein Blending then and now:    has an openhas an bond to connect with [?]    Ethyl component The “EthylFluid” mentioned in the is to ad Geographic 1931– ads like the one onleft.This is fromad National EthylCooperation (www.ethyl.com)1923 ranfounded in Lead gasoline up to 25% in Brazil in the10 % USA.& Now Gasoline – – harmful knock and overheating)”knock and harmful rather than “sharp, irregular bursts (that cause power “deliver power … with a smoothly increasing pressure” Ethylblendedalcohol with (octane number108) is Ethanol = Ethyl Alcohol= Ethanol Pb (Plum is lead-free = b C um C H H 8 years afteryears Ethyl’s8 founding. 3 3 in C C Pb now H H ) in “Ethyl latinFluid”) in of 2 2 O − H in mostcountries. [?] [?] C + − C But radiationshield Leadis toxic C C O then. ? - waste, waste,

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metin /~ II. I. III. Refining operations Final product storageshipment and Crudeoil receipt and operations 3. 2. 1. 2. 1. 4. Blending Treating Conversion Distillation Desalt Mix c) b) a) c) b) a) b) a) Refinery Operations and Yields Dewax Hydrodesulfurization Desalt Combining (Alkylation) Reforming Cracking Vacuum Atmospheric ii. i. ii. i. Reforming Isomerization cracking, Hydrocracking Catalytic cracking: Fluid catalytic Coking, Thermal Steam Cracking: Visbreaking -cracking, More gasoline in US. More Diesel & Fuel oil in Europe. in oil & Fuel US. Diesel in More gasoline More   Refinery y Refinery Refinery y Refinery – – – – – – – – – – – – – 19% Residual19% fuel oil 36% 21% 23.7% 46.9% 3% Petroluem3% 9% Residuals like Asphalt 6% Kerosene used in Jet Fuel 4.2% Liquefied gas 3.2%Asphalt 5.1%Coke 9.5% Jet Fuel Residual4.2% fuel oil(heating ship fuel) & Distillateoil fuel Gasoline6% + ields ields Distillate fuel oil( Gasoline in Europein p.168 in USin in 2003: gas like Liquefiedlike gasgas Naphta inc. Diesel) of GOGI of :

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metin /~ Capacity,Investment Cost, Refinery Markets:

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metin /~ Refinery Characteristics: Types and ProductsCharacteristics:Refinery

   refinery

Refinery outputs are are outputs Refinery Complexrefineries havehigher margins. Simple refineries have low margins and are owned by small & niche companies. , wax, solvents, machine oils) wax, solvents,machine Other products(lubricants,

Cooper 2003 Dahl 1993 Brons Graham Espey Dahl & Study – – – – Coking Product prices are volatile as demand is inelastic in the short-term.is inelasticin as demandprices arevolatile Product volatile. whose pricesare crude prices to prices arerelated Product Output markets are more segmentedseason, quality. byregulation, location, Their margins et al. 2008 et

1998

Sterner 1991

& Glaister refinery Cracking 2004 ↑

when the spread (light sweet price crude spread (light when the commodities: refinery Topping Gasoline Gasoline Gasoline Gasoline Product Oil Oil Atmospheric distillation Hydrodesulfurization Middle distillates(Gasoline); Pretreatment Short elasticity - term 0.25 0.26 0.05 0.07 0.34 0.26 - Long elasticity − term 0.77 0.86 0.21 0.30 0.84 0.58 heavysour crudeprice)↑ , jet fuel, ); heating , jetfuel, Middle distillates ( Catalytic cracking Source:S.A. Chen, , Zacheis.S. Chordiya,2017. Q. Le,S. Ouseph Isomerization Alkylation Factors AffectingGas Prices. Averages are over8 weeks Fall in 2017. DemReMan Coking Project Report. Report. Project

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metin /~    Crudesbecoming areheavyand sour (high - . intensive energy is Refining - capital Refineries, • • – – – – – – – – – Close to60% of operating expenses arefor the energy. spent20% on 30-40% of refining energyis spent on distillation. USrefining consumed 6.4 quads (10 Boomsand Busts: Profitability of refinery peaked in 1988 and 2001: 15%.It plungedto Net Margin = Gross margin Gross marginRevenues = fromproduct sales investmentinitialHigh financial exposure to interest and risk: investment rate,cost. crudecycle, Cost of a This is profitableenvironmentalrequiredis This and by regulations. Recent capacityexpansion of USrefineries is toprovide bottom Refining Characteristics:Margins • » US US Department of Energy,Office of Industrial Technologies,Manufacturing Energy Consumption Survey, August 2004. Cracking refinery: Equipmentbuildings, and next page hydrotreating intensive, long lifetime, very specific physical assets physical very specific long lifetime, intensive, refineries arebecoming coking refineries over timewith the capacityand process expansions. Topping Coking Cracking Complexity (removal of sulfur, nitrogen, oxygen and metals) – Cost of (marketing + internal energy + operating) was$3 per barrel in 2004. Capacity 15 US US 65.7% 28.7% ) BTUin 2004. This is28% of energyconsumption in USmanufacturing. 5.6% sulfur). sulfur). – Gross Margin Cost of crude $/barrel 0.5 3 to4.5 to 5 to7 1.5 was $8.68barrelwas per2004. in -of Net Margin $/barrel 0.5 to 1.5-0.5 -the 0.5 to4 0 to2.5 -barrel processing to . -1.7% in2002. handle heavy crude. crude. heavy

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metin /~ Source      Investment Cost for a Refinery inRefinery 1994by InvestmentCost fora and walks;and Railroads;Buildings. air systems;Fire protection systems;Flare, drain and wastecontainment systems;Plant communication systems;Roads Contingencies: factor: Location facilities: Offsite Onsite facilities facilities Onsite day): stream per (barrels BPSD : Cost Estimation. Chapter 17. Petroleum Refining: Technology and Economics, 3 and Economics, TechnologyRefining: 17. Petroleum Chapter Estimation. Cost : – – – – Unit Naphtane Vacuum distillation Atmospheric distillation Catalytic reformation Reforming Storage Steam water Cold Offsitefacilities cost: Formidsize a refinery offsite costs are30% of onsite facility cost. St. Louisfactor has a of 1.4.Alaska North Slopefactor a has of 3.0. USGulf coast refineries arerelatively cheaper and have location factor of 1.0. desulfurization desulfurization 15% allowance allowance 15% Major Equipment Estimates Equipment Major of a refinery cost: cost: refinery a of Location determinesclimate Electric power distribution; Fuel oil and fuel gas facilities; Watersupply, treatment, disposal; Plant 8,240 gallons/min 30,900 pound/ $ 12 day 18,000 BPSD 30,000 BPSD 30,000 BPSD 4,000 BPSD 3,000 BPSD 24,893 Capacity - thruput for major loopholes and inaccuracies. and loopholes majorfor max max = hr 82976 # of barrels of input distillationa unit can process $ Cost in K$ Cost in 82,976 ∗ (affectsconstruction design & costs), 0 14,500 27,000 18,000 11,000 .3 1,800 6,600 2,472 600 824 K K . Storing 360,000 rd ed. by J.H. Gary, and G.E. and Gary,J.H. byed. = 2290 m 1 m 12 57,143 m 3 = 6.3 barrels, 360,000 barrels = 57,143m 360,000 barrels6.3 barrels, = 360,00 gallons in 150 x 150 m 150 x in360,00 150 gallons

57,143 m 25 m ∗ 3 30,000 =Volume9 m radius9 m, heightof tank localtaxes. rules & 9m 3 = 3 25 ≤ barrels at the cost of $50/bbl 3 tanks with 20,000m with 3 tanks tanks each with 2,290m with tanks each Handwerk 1994. 2 3

3 150 m

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metin /~      If this refinery were to be built in Alaska in be to built were refinery this If Cost in year2010 = [Cost in year1994] * Cost We million. $174 about was 1994 in Louis St. in refinery midsize a of Cost – = Take have found thecost aof refinery simple be to $174 millionin 1994. To2010 bringitto use:

301. 36 Source: www.ogj.com January 9, 2012. ( in year (t) = [Cost in year (s)] * [Index in year (t) / Index in year (s)] yearin Index / (t) year in [Index * (s)] year in = [Cost (t) year in ) 82,976 ∗ ( Location 1 Location .3 Inflation Factor into Account ) ( 1 .4 factor factor ) ( 1 in .15 in North ) St = . Louise 173,582 Slope = 301 North North [2,337.6 / 1,349.7] = 174 * 1.732 = $ 301.36 Million.$ 1.732 =1,349.7][2,337.6174 * /= .36 , the cost would be would cost , the Slope ∗ 1 3 . 4 = $ 646 Million .

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metin /~      Complexity roughestimateA of refinery cost is$15,000for eachBPSD. Doubling The cost increases but does not double doubleif we the capacity.In particular, Cost of a – – – – – – Update ison the next page This complexitydefinition dates back to1960s and wasdeveloped by NelsonW.. exampleSomecomplexities: CatalyticHydrocracking Alkylation 6; 10; Complexity of atmospheric distillation unit $ 646 Million. The rough cost estimate can be inaccurate byabout 50%. 30,000refineryHowever, BPSDestimateroughdetailed estimateis whose$450 Millionthis becomesa cost for obtained for the samesize refinery inAlaska. Using this, the cost60,000 of a BPSDrefinery turns out to $900 beMillion, similar tothe detailedestimate Cost of capacity » » » 𝑞𝑞 the capacity inAlaska,the cost of refinery increases646 (2) to Catalytic reforming is 500/100=5times morecomplex than atmospheric distillation. If 20,000a BPCD catalytic reforming unit costs $10 Million, the cost per BPCD is$500. If 100,000a BPCD distillation unit costs $10 Million, the cost per BPCDis $100. = Cost ofCapacity of a refineryof a definedbe can in termsof complexity of itsunits. 30,000 BPSDrefinery inAlaska in2010 has been found to $ 646Million.be Complexity 𝑄𝑄 = Cost of capacity of a unit = Cost 𝑞𝑞 ∗ of ← 𝑄𝑄 𝑞𝑞 atmospheric 1. This1. most unitgivesoutput the (BPCD)invested. $ per Cost 0 . 6 . ⇒ of that Complexity unit distillation per 0.6 BPCD = per Isomerisation $ 979Million. BPCD 15; Lubricants15; 60.

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metin /~  US US

– – Based on Table 3 of M.J. Kaiser. 2017. A review of refinery

Refinerycomplexity company by in 2003: complexity applications. Petroleum Science (14): 167-194. product slate.Higher complexity usually meansmoreenergy input per barrel of crude.” “Highercomplexity allows Valero to process cheaper higher sulfur crudes while maintaining highlya desirable 10.3; Premcor9.4; Sunoce Valero13.4; 12.8; ChevronTexaco 11.6;12.3; Citgo BP 11.4; Shell 11;Marathon 10.6; ConocoPhillips Catalytic Catalytic hydrocracking Catalytic reforming Catalytic cracking Coking (delayed) Thermal cracking, Vacuum distillation Atmospheric distillation unit Refining Catalytic Isomerization Aromatics Polymerization Alkylation  hydrorefining hydrotrating Source: Source: Valero Energy Strategy. G. visbreaking Empirical Empirical 8.7; Tesore Complexity1998 in 8.5. 2.75 15 15 10 10 6 5 6 6 2 1 3 2 Faagau Complexity , Director, EnergyValero, Optimization, EnergyCorporation. Distillate bottom Flasher residue run Straight tops Flasher Based on Fig13- Based gas oil Heavy Inserted responsein toKangukMerit Cha,20 Cracking units by their input, output and complexity. and output input, units bytheir Cracking Lightest at Input quality s Visbreaking the 2.75 5 of Leffler.5 of Refining.2018. Petroleum top cracking Thermal 2.75 % conversionlight oils % to Catalytic cracking 6 hydrocracking Coking Output Catalytic 6 6 quality

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metin /~ An increase in decreasesuncertainty the probability a refinery its capacity. adjusts Source: T. Dunne andT. Dunne 100 150 200 250 300 350 50 0 1979 Refining100,000 capacity BPCDin X. 2008. Mu. Number of When to Invest?When refineries 1984 Investment Spikes and 1989 Uncertainty in the Petroleumthe Uncertainty Refining Industry. in Lower uncertainty Lower Higher margin Investment 1994 Window 1999 Working Fed. paper, BankReserve of Cleveland. 2004 Fewer refineries Fewer refineries more capacity provide 2009

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metin /~    did not. Although thenumber refineriesof significantlydropped 324 from1981 into 148in 2011, thecapacity Catalytic hydro BPCD. million8.6 capacity is Vacuum distillation column) Distillation Oil Atmospheric(of capacity US refining – – – – – – – – US Refining Capacity and Structureand Capacity Refining US Regardless of ownership structure, refineries tend to be run as separate profit centers. profit separate as run be to tend refineries structure, ownership of Regardless Variousrefining. in involved exist: also are structures independents ownership and midsizeNow capacity. refining of most own to Vertically ownership: used Diverse companies major integrated before. than now refineries owning companies fewer are There ownership: Concentrated Top 3US refineriesprocess36% thecrude of oil; top 10process 77%. Expansion is moreeconomicthan a brand - Existing expanded refineries their capacities. 1981. day) in calendar per BPCD (Barrels 19.4 was million is 17.7is millionBPCD in 2011. » » » » » » expected to be completed inthe second quarter of 2012.Downstream company will be called Phillips 66. ConocoPhillips is separating its production (upstream) from refining (downstream). Separation is Koch industriesis privately owned. enterprisesMotiva Houston) (of 50- joint venture betweenRoyalDutch ShellSaudi & Refining. Holly Frontier Regulatory requirements areeasier toovercome. Economies of scale - cracking cracking (2828 N HarwoodSt,(2828 N capacity is 1.9 million BPCD. BPCD. million1.9 is capacity Dallas new facility. new , 75201)TX on its ownis and public. Thermal cracking capacity cracking Thermal is 2.7 million BPCD. BPCD. million 2.7 is

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metin /~ Optimization of Refinery Operations   Optimization of Crude Oil Operations OilOperations of Crude Optimization Operations Refining of Optimization – – – Discretecrude shipmentsparcels  as Continuous crude inflowpipeline froma Continuous processes  Continuous variables Discrete variables  Continuous variables

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metin /~       Distillation processes: 4 have Crudes receives refinery A simple Oils Naphtas Light,   can be be can barrel of oil: oil: of barrel Cracker’s Reforming’s medium and heavy heavy and medium can be be can blended separates crudes into crudes separates output is blended Reformed Optimization of a RefineryOptimizationof a Crude B Crude Input Output/ Crude A Crude output is E.g., 1barrel of light oil yields to produce jet fuel/fuel oil or can go go can cracker. or to oil fuel/fuel jet to produce to produce refined products or can go to reforming. cracked oil oil cracked Cracked gasoline Cracked oil Distillation naphtas gasoline 20,000 barrels reformed gasoline reformed gasoline Naphta Light Light 0.15 0.10 have have and (light & middle), (light Cycloalkanes octanenumbers70, 80, faster. 90. ignites Light Light Light Medium cracked gasoline gasoline cracked Naphta of of Light oil crude A crude 0.60 barrels 0.25 0.20 Naphta 0.68 with with 0.28 0.68 barrelcracked of oil and . Yield of each barrel of naphta of octanebarrel number each of 115. Yield Naphta Heavy and reforming Heavy Oil 0.18 0.20 30,000 barrels with with Medium 0.20 0.75 octane each numberof 105. Yield Light , Oil 0.52 barrels cracking 0.08 0.12 Naphta Fuel oil and jet fuelandFuel jet oil Used for blending Used of of 0.28 Gasoline Heavy crude B crude (regular& coking), blending. Oil barrel of cracked gasoline. 0.19 0.20 Heavy . Residuum 0.45 barrels Naphta 0.12 0.13

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:

metin /~ Crude A Crude Light Light Light Oil Light Residuum Heavy Naphtha Heavy Oil Medium Naphtha Intermediate Intermediate Numbers not shown not Numbers Distillation Products Naphtha Crude B Crude Processes Map and Map Yields PartialProcesses 0.75 barrel of cracked oil crackedof 0.75 barrel gasoline crackedof 0.20 barrel 1 barrelof heavy yields oil Coking Cracking Reforming 0.52 0.45 barrel of reformed gasoline heavyof 1 barrel 0.60 0.45 0.75 0.28 0.68 0.20 Reformed Gasoline Cracked naphta Gasoline Oil Cracked yields

Middle Light Distillate Distillate Blending Blending Fuel oil Fuel Gasoline Premium Jet Fuel Jet Gasoline Regular Lube oil oil Lube Products Final

.

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metin /~     Yield of each barrel of residuum is below. below. is residuumof barrel each of Yield is obtained by blending cracked, light, heavy oil and residuum in the ratios of 3:10:4:1. of 3:10:4:1. in ratios the and residuum oil heavy light, cracked, by blending obtained is Fuel oil kg/cm 1 than less be must Pressure) fuelJet atleast be must numbersoctane Their gasoline. and cracked gasoline reformed premiumand Regular Residuum  of residuum results in 18 barrels of fuel oil. oil. fuel of barrels 18 in results residuum of barrel 1 and oil heavy of barrels 4 oil, light of barrels 10 oil, cracked of barrels 3 blending E.g., is obtained by blending light, heavy, cracked oils and residuum. RVP Its residuum. and oils cracked heavy, light, by blending obtained is can be usedcanbe for producingor oil lube Optimization of a RefineryOptimizationof a Octane number RVP RVP are two types of obtained by light distillate blending naphtas blending distillate by light obtained gasolines of types two are Lube oil Light oil 2 ≥ . The pressures of the inputs are as follows. as are inputs the of pressures The . 1.0 Regulargasoline Heavy oil middle distillate blending middle blending distillate Residuum 0.6 84 0.50 Cracked oil Premium 1.5 gasoline Residuum in to jet fuel and fuel oil. oil. and fuel in jetfuel to 94 (Reid Vapor Vapor (Reid 0.05 ,

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utdallas edu 28 Page

metin /~ Crude A Crude Light Light Light Oil Light Residuum Heavy Naphtha Heavy Oil Medium Naphtha Intermediate Intermediate Distillation Products Naphtha Processes Map and Map Yields CompletedProcesses Crude B Crude

Coking Cracking Reforming 0.52 0.50 0.45 0.60 0.75 0.28 0.68 0.20 Reformed Gasoline Cracked Gasoline Oil Cracked

Middle Light Distillate Distillate Blending Blending 10 10 4 4 3 1 RVP Fuel oil Fuel ≥ Octane Gasoline Premium Jet Fuel Jet ≥ Octane Gasoline Regular Lube oil oil Lube Products Final ≤ 1

.

edu 94

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4

metin /~ Limits on the final products: final the on Limits       Capacities: Refined product prices in Refined prices product $/barrel production. gasoline regular 40% of be least at must production gasoline Premium BPD. 1000 and 500 be between must production oil lube Daily 8,000 is BPD. capacity Cracking BPD. 10,000 is capacity Reforming day. per barrels 45,000 Capacity Distillation Process Capacities, Limits Capacities,andProcess Prices Premium Premium gasoline 140 gasoline Regular 120 fuel Jet Jet 80 Fuel oil 70 Lube Lube oil 30

.

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metin /~ Crude ACrude Light Naphtha Heavy Naphtha Medium NaphthaMedium Light Oil Heavy Oil Residuum Residuum Intermediate Distillation Products CA LO R HO Processes with DecisionProcesses Variables LN Crude B B Crude HN MN CB HOC LNR MNR LOC HNR RC LOB HOB LNPG+LNRG Coking RB Cracking Reforming 0.52 0.50 MNPG+MNRG 0.45 0.60 0.75 0.28 HNPG+HNRG Gasoline 0.68 0.20 Reformed RGPG+RGRG Gasoline ReG Cracked Oil Cracked CGPG+CGRG CO CG

Middle Light Distillate Distillate Blending Blending 10 4 3 1 ≥ Octane Gasoline Premium ≥ Octane Gasoline Gasoline Regular Lube oil Fuel oil RVP Jet Fuel Fuel Jet Products Final ≤ FO 1 LuO PG RG 94 8 JF 4

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metin /~     Premium gasoline production must be at least 40% of regular gasoline production. gasoline regular 40% of be least at must production gasoline Premium BPD. 1000 and 500 be between must production oil lube Daily capacities Process of crudes availability Contractual 𝐿𝐿 𝐿𝐿𝐿𝐿 𝐿𝐿𝐿𝐿𝐿𝐿 𝐶𝐶𝐶𝐶 + + + Constraints 𝐶𝐶𝐶𝐶 𝐻𝐻 𝑀𝑀 𝐻𝐻𝐻𝐻 𝑀𝑀𝑀𝑀 ≤ 45 𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶 𝑃𝑃𝑃𝑃 𝐿𝐿𝐿𝐿𝐿𝐿 𝐿𝐿𝐿𝐿𝐿𝐿 ≤ + , 000 8 ≤ 𝐻𝐻𝐻𝐻𝐻𝐻 ≤ ≥ , 000 ≤ ≥ 20 30 0 at distillationat 1 5 . 4 , , 000 , , 000 ≤ at cracking 000 000 𝑅𝑅 10 , 000 at reforming at

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metin /~  Distillation Crude B Crude A CB CA separates crudes into light, medium, heavy naphtaheavy medium, light, into crudes separates Constraints: Distillation Constraints: R HO LO HN MN LN Naphta Light Light LN 0.15 0.10 Medium Naphta MN CA 0.25 0.20 0.13 0.20 0.12 0.20 0.20 0.10 Naphta Heavy HN 0.18 0.20 CB 0.12 0.19 0.08 0.18 0.25 0.15 Light LO Oil 0.08 0.12 , light, heavy oil and and residuum. oil heavy , light, Heavy HO Oil 0.19 0.20 LN HO LO MN HN

R

= = = = Residuum = =

0.12

0.20 0.20 0.13 0.20 0.10 R 0.12 0.13

CA CA

CA CA CA CA CA CA CA CA CA CA + + + + + +

0.08 0.12 0.19 0.18 0.25 0.15

CB,

CB. CB, CB, CB, CB;

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metin /~   Light, Heavy Oil and and OilResiduum Heavy Light, Naphta Naphta Light Naphtha Heavy Naphtha Medium NaphthaMedium balance equation balance Heavy Oil Light Oil Residuum Residuum LO HO LN R HN MN , Light,Heavy Oil, Residuum , Constraints: HOC LOC LNPG+LNRG balance equations balance LOB LNR MNR HNR MNPG+MNRG HOB RB RC

Cracking HNPG+HNRG Reforming Coking LN MN HN

LO HO

Premium Gasoline Regular Gasoline Gasoline Regular = = = R HNPG HNPG LNPG LNPG

MNPG

= = =

HOC RC LOC

+ + + +

+ + RB. LNRG LNRG HNRG HNRG MNRG

PG RG HOB. LOB, + + + LNR, MNR, HNR.

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metin /~    Coking Cracking Reforming balance equations balance HOC MNR LOC LNR HNR RC balance equations balance balance equations balance Process BalanceEquationsProcess Coking Cracking Reforming 0.50 LuO 0.52 0.45 0.60 0.75 0.28 0.28 0.20 0.68 0.20 Gasoline Reformed Constraints: Gasoline ReG Cracked Cracked Oil CO CG LuO = 0.50 ReG

RC. CG CO = 0.60 = =

0.68 0.28

LNR

LOC LOC +

0.52

+ +

0.20 0.75

MNR

HOC. HOC

+

0.45 ,

HNR.

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metin /~   Light Distillate Blending Distillate Light Gasoline Cracked and Reformed MNPG+MNRG CGPG+CGRG RGPG+RGRG HNPG+HNRG LNPG+LNRG Gasoline Reformed Gasoline Light Distillate Blending Distillate Light RGPG+RGRG Cracked ReG CG Light CGPG+CGRG Distillate Blending Constraints: balance equations balance RG RG PG PG = = Premium Gasoline Regular Gasoline Gasoline Regular

LNPG LNPG LNRG LNRG CG CG ReG ReG + +

MNRG MNRG MNPG MNPG RG = PG =

CGPG CGPG RGPG RGPG + +

HNPG HNPG HNRG HNRG + +

CGRG.

RGRG, + +

RGPG RGPG RGRG RGRG + +

CGPG, CGRG .

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metin /~  Middle Distillate Blending Distillate Middle . . . Constraints: Middle DistillateBlending Eventually, weproduce 180 barrels andof 100 FObarrels of JF. have, we If produceTo 180barrels 110 100 barrels of 40 barrels40 of 60 barrels of50 barrels RB, extra goes into JF. 40 barrels of HOB,0 70 barrels CO,40 barrelsof extra goes into JF, barrels30 of 10 barrels10 of 𝐽𝐽 barrels of LOB, 10 barrelsLOB,10 barrels extrainto goes of JF, = 𝐶𝐶 𝐶𝐶 Heavy Light C R ≥ − racked racked esiduum toBlending. 18 18 Recipe for Fuel Oil 3 3 Oil to Oil to of FO,blend we 𝐹𝐹 barrels extrainto goes JF, 𝐹𝐹 Oil, 𝐹𝐹 𝐹𝐹 ; Blending, Blending, + 𝐿𝐿 𝐿𝐿𝐿𝐿 𝐿𝐿 𝐿𝐿𝐿𝐿 ≥ − 18 10 18 10 𝐹𝐹 𝐹𝐹 𝐹𝐹 𝐹𝐹 HOB LOB CO ; RB + 𝐻𝐻 𝐻𝐻 𝐻𝐻𝐻𝐻 𝐻𝐻𝐻𝐻

≥ Middle − Distillate 18 18 4 4 Blending 𝐹𝐹 𝐹𝐹 10 𝐹𝐹 𝐹𝐹 4 ; 3 1 + FO Fuel oil Fuel JF Jet Fuel Jet 𝑅𝑅 𝑅𝑅 ≥ − 18 18 1 1 𝐹𝐹 𝐹𝐹 𝐹𝐹 𝐹𝐹 ;

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metin /~   Vapor pressure Vapor Octane numbers Cracked gasoline has octane number105. Reformedgasolinehas octane number115. Light, LOB Jet fuel RVP must be less than 1 1 kg/cm than RVP less be must fuel Jet − medium and heavy heavy and medium LNPG LNRG (10/18)FO JF PG RG Octane and Pressure Vapor Octane 70 70 + + 1 MNPG MNRG + PG RG HOB naphtas 80 Constraints: − 80 JF (4/18)FO + + have octanenumbers70, 80, 90. HNPG HNRG PG RG 2 . 0.6 90 90 + RVP RVP + + RGPG CO RGRG PG RG − (3/18)FO Light Light JF 115 oil 115 1.0 + + CGPG CGRG Heavy PG 1.5 RG oil number Octane 0.6 + 105 RB 105 Cracked ≥ − ≥ oil ≥ 94. (1/18)FO JF 1.5 84 gasoline Regular , Residuum 84 0 Premium . gasoline 05 0.05 ≤

.

1.

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metin /~   Inputs come through an existing contract. They are fixed and their costs are sunk.are costs and fixed They theirare contract. an existing through comeInputs the whose from are products $/barrel revenue final prices Maximize Premium Premium gasoline Maximize 140

gasoline Regular 140

PG PG 120 Objective + 120

RG RG fuel Jet Jet + 80 80

JF

+ Fuel 70 oil

FO 70

+ 30

LuO Lube Lube oil . 30

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metin /~   Alteration Exercise: Modifying Middle Distillate Distillate Middle Modifying Exercise: Alteration Middle Distillate Blending Distillate Middle . . . No RVP constraint is necessary! is constraint RVP No RVP of of RVP has JF the 2:4:1:1, of ratios at mixed RB are and HOB Jet fuel RVP must be less than 1 1 kg/cm than RVP less be must fuel Jet If we If produceTo 80barrels modification is inspiredby question froma Juan Vanegas Merit’14. light, Thisheavy residuum2:4:1:1.oil and the ratios in of needs SupposeJF that Recipe for JetFuel in addition to Fuel Oil 10 and 10barrels respectivelyof RB for and JO.JF 10 and 40barrels respectivelyof HOB for JF and FO, 40 and 100 barrels of LOBrespectively for JF and FO, 20 and 30barrels respectivelyof CO for JF and FO, 10 barrels of RB. 10 barrels of HOB, 4 20 0 barrels of LOB, (2/8)1.5 +(4/8)1 +(1/8)0.6 +(1/8)0.05 = barrels of CO, of barrels want 80barrels andof 180 JF barrels of FO,needwe at least CO HOB

≥ of of to be producednowto be by

≥ (2/8) JF

(1/8) , weblend

JF

JF + (3/18) + (4/18) 2 . When CO, LOB, LOB, CO, When .

7.65/8 1.< FO; blending cracked,

FO;

LOB RB

≥ ≥

RVP RVP (4/8) (1/8)

JF JF Light Light HOB HOB LOB LOB CO CO RB oil RB 1.0 + + (10/18) (1/18) Heavy oil

0.6 Middle Middle

FO. Distillate Distillate FO; Blending Blending Cracked

10 oil 4 1 4 1.5 3 2 1 1 requirement requirement Residuum Fuel oil oil Fuel Jet Fuel Jet Existing FO JF New

0.05

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metin /~ Refinery Operations Flowchart     Check inequalitiesCheck beforesolving Inequalities backgroundoftenin the are Data entry by Drop Refinery Optimizationin Practice • • • -down menu for a symbol importingfrom database reading fromfilesExcel typing numbersinto tables

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metin /~ ...... 2 coatings: to produce these to use plans and distillation/conversion C3 after C2, C1, (components) products intermediate 3 obtains refinery Texas $0.55 / The processing (including/ processingThe ¢ treatinggiven asblending) are and costs technologicalThereare constraints whileblendingcoatingsthe components make to Withcurrent processes & componentsproducingof (through 3 cost The purchasing distillation, crude, conversion)are/ $0.45 10,000leastof liters produce contract at to a refineryTexas has The . . sales pricecoatingssales of $1.15 are / Aluminum can contain at most 45% C2 and must contain at least 15% C1 and 25% C3. MightyPlate litre Refinery Optimizationin Class for C2 and $0.75and / for C2 can containcan at most55% and atC1 most 25% and mustC3 contain leastat 35% C2 TexasRefinery Context input, the refinery can produce 4000 liters of C1,7000 liters andof 8000 C2 liters of C3. litre Aluminum MightyPlate for C3. for litre MightyPlate for for MightyPlate C1 18 12 and Aluminum. Aluminum.and and $ 1.30 / and $ C2 13 15 MightyPlate C3 litre 20 10 litre by the tablethe below by . for Aluminum. litre for C1, C1, for

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metin /~ Out of context 2. Conversion 1. Distillation Crudes Texas Refinery Context Visualization 𝐶𝐶퐶 Cost $0.45/litre 𝐶𝐶퐶 Cost $0.55/litre 𝐶𝐶퐶 Cost $0.75/litre ≤ ≤ ≤ 4 7 8 ,000 ,000 ,000 Technological constraints Technological litre litre litre . . C3 C2 C1 A can containA M can contain 3 . ≤ Treating & ≤ 45% C2 and must contain 55% C1 and ≤ Context Cost $0.12/litre Cost $0.20/litre 4. Blending 25% C3 and must contain ≥ 15%and ≥ C1 A M M Price $1.15/litre Price $1.30/litre ≥ ≥ 35% C2. 25% C3. 10 ,000

litre .

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metin /~ Cost Cost Cost 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶 𝐶𝐶 𝐶𝐶 0 0 0 .45 .55 .75 + + + 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 ( ( ( 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶 𝐶𝐶 𝐶𝐶 ≤ ≤ ≤ + + + 7 4 8 To formulate: Define decision variables for each arrow: To each for variables decision Define formulate: ,000 ,000 ,000 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 ) ) ) M A must contain contain A must A must contain contain A must IngredientsFormulationa of A can contain contain A can M can contain M can ≤ contain M can must contain C3 C2 C1 𝐶𝐶퐶 𝐶𝐶 Texas Refinery , 𝐶𝐶퐶 ≤ ≤ ≥ ≥ ≥ 𝐶𝐶 45% C2 45% 25% C3 25% 55% C1 55% 25% C3 25% 35% C2 35% 15% C1 15% , 𝐶𝐶퐶 𝐶𝐶 , 𝐶𝐶퐶𝐶𝐶 Cost Cost 𝐶𝐶 𝐶𝐶 𝐶𝐶퐶 , 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 0 0 2 3 .12 .20 𝑀𝑀 𝑀𝑀 𝐶𝐶 𝐶𝐶퐶 𝐶𝐶퐶𝐶𝐶 , ≥ ≤ ≤ ≤ ≥ ≥ 𝐶𝐶퐶𝐶𝐶 𝐶𝐶 0 0 0 0 0 0 . . . 35 25 55 . . . 45 25 15 ( ( 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶 𝐶𝐶 𝐶𝐶 + + + + + + A M 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 Revenue Revenue Revenue 𝐶𝐶 𝐶𝐶 𝐶𝐶 𝐶𝐶퐶 + + + + + + 𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 + 1 1 𝐶𝐶 𝐶𝐶 𝐶𝐶 .3 𝐶𝐶퐶 .15 ) ( ) 𝐶𝐶퐶𝐶𝐶 𝐶𝐶 𝐶𝐶퐶 + 𝐶𝐶 + 𝐶𝐶퐶 𝐶𝐶퐶𝐶𝐶 + 𝐶𝐶 𝐶𝐶퐶 ≥ + 𝐶𝐶 10,000 𝐶𝐶퐶𝐶𝐶 +

𝐶𝐶퐶

.

utdallas edu ) 44 Page

𝐶𝐶

metin /~ Formulation: Objective Function and Constraints Maximize 1 − − . 15 0 0 . . 12 45 𝐶𝐶 𝐶𝐶 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 2 3 𝐶𝐶퐶 ( 𝐶𝐶퐶 𝐶𝐶퐶 𝑀𝑀 𝑀𝑀 𝐶𝐶 All 𝐶𝐶 𝐶𝐶 𝐶𝐶 𝐶𝐶 ≥ ≤ ≤ + variables ≤ ≥ ≥ − 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 + + 𝐶𝐶퐶 0 0 0 0 0 0 0 . . . 𝐶𝐶퐶 𝐶𝐶 𝐶𝐶 𝐶𝐶 35 25 55 . . . . 𝐶𝐶퐶𝐶𝐶 15 45 25 15 𝐶𝐶 + + + 𝐶𝐶 ( 𝐶𝐶퐶 ( + 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 Texas Refinery 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 ) 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 + 𝐶𝐶퐶 𝐶𝐶 − are 𝐶𝐶 𝐶𝐶 𝐶𝐶 𝐶𝐶퐶 0 𝐶𝐶 − + + + + + + . ≤ ≤ ≤ 55 nonnegative 𝐶𝐶 0 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 . + 8 7 4 10 ( 𝐶𝐶퐶 ≥ , , , 1 000 000 000 𝐶𝐶 𝐶𝐶 𝐶𝐶 𝐶𝐶퐶 . 3 10 𝐶𝐶 + + + + + + ( 𝐶𝐶 𝐶𝐶퐶𝐶𝐶 , 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 𝐶𝐶퐶𝐶𝐶 + 𝐶𝐶퐶 𝐶𝐶퐶 𝐶𝐶퐶 000 − Component AvailabilityComponent 𝐶𝐶퐶𝐶𝐶 𝐶𝐶 𝐶𝐶 𝐶𝐶 0 + ) . ) 18 𝐶𝐶퐶𝐶𝐶 ) MightyPlate 𝐶𝐶퐶𝐶𝐶 − Aluminum Technology MightyPlate 0 + . 75 − 𝐶𝐶퐶𝐶𝐶 ( 0 𝐶𝐶퐶 . 13 ) 𝐶𝐶 𝐶𝐶퐶𝐶𝐶 Contract + Technology 𝐶𝐶퐶𝐶𝐶 − 0 . ) 20 𝐶𝐶퐶𝐶𝐶 For numericalFor see texasRefinery.xlsx

.

utdallas edu 45 Page

metin /~ Summary - - - - Based on    Optimization Markets Processes Gary, G.E. G.E. Gary, Petroleum GuideA to Oil and GasIndustry (GOGI).DeutscheBy Bank Market Research, 163-187. RefiningHandbook. Process Introduction. Chapterof Petroleum1 Refining: Technology and Economics, 5 Refining. Handwerk 4 th and M.J. Kaiser 2007. edition W.L.Leffler,by 2008. Surinder Parkash . Published by Elsevier.Published. by 2003. th edition byedition J.H.

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metin /~   Each refineryunique is and evolve with expansionsover time. Refineriespollution create – – – – – sulfuroil. crude processing capacity of 247 MBD. It processes mainly heavy, high-sulfur crudebut also oil, processes light, low ConocoPhillips’ Sweeney Refinery and includesan ConocoPhillips’Refinery Borger Refineries aresubject to several regulations. pollutionReducingPollution thegasoline. refinery fromburning createdbyproducts as gasoline? such crackingcoking units. and monoxide, Nitric oxides, Volatile organic compounds (paints,created adhesives).arethesecatalyticofAll by Pollutionemittedduring gases refining operations: Particle matter(dust,dirt,smoke,soot),Sulfur dioxide, Carbon NGLfractionation capacityis 45MBD. Refining Characteristics:Pollution » » » » » » » » » these facilities to these facilities to the refinery. The terminals nearbyandoperates refinery facilitiesstorage in Freeport, Jones andCreek on the San River, Bernard along wi Output: TX. at Freeport, terminala deepwater Coast, including Input: hydrodesulfurization Facilities: Output: Panhandle, WY andCA. It can crudevia receive companyforeign Input: fuels. high percentageof transportation Facilities: Water. Drinking Safe Quality, Water Water, Clean Control, Pollution Water Federal Refuse, and Harbor, River Act: Water 1967. Quality1965. AirPollution Air 1967, 1970,1975,1977,1990.MotorVehicle amendments Air 1963, Clean Air Acts: Domestic and foreign crude oil, received primarily through wholly and jointly owned terminals on the Gulf owned terminalson and jointlythrough whollythe Gulf crudeoil,received Domesticand primarilyforeign mediumsour crudeoil and WestPrimarilypipelines TX,the from liquids receivedthrough TX A high percentage of transportation fuels (such as gasoline, diesel fuel and jet fuel). Other products include products Other jet fuel). and (suchasgasoline, dieselfuel fuels transportation of high percentage A and solvents. coke, NGL andjetfuel), diesel fuel (gasoline, fuels transportation of high percentage A , delayed coking, alkylation, a continuous regeneration reformer and reformer a coking, alkylation,cracking, delayedcatalyticfluid continuous regeneration cracking, catalyticfluid coking, NGL fractionationNGL facility , feedstocks homeheating oil and coke. units. is located in Borger, TX,in the TX Panhandle about 50 milesnorth of Amarillo located in Old Ocean,TX,65 miles southwest of Houston, crudea has oil . The refinery’s gross crude oil processing capacityis 146 MBD, and the hydrodesulfurization and naphthareforming - owned and common-carrier pipelines. owned that enable it to produce a th th pipelines that connect that connect pipelines

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metin /~    Global Capacities. Africa Africa Capacities. Global PADD I US Capacities. WW during II. were established for Districts) Defense Administration PADDs (Petroleum South AmericaSouth – – – – – US Refineries and PAD Districts PAD and RefineriesUS PADD V: West: AK, AZ, CA, HI, NV, OR, OR, NV, WA AZ, HI, AK, CA, V: West: PADD ID, MT, WYUT, CO, IV: PADD Rockies: TX LA, NM, III: AR, MS, AL, PADD South: TN, OK, OH, NE, WI SD, MO, ND, MN, MI, IL, KY, IN, IA, KS, II: PADD Midwest: FL, WVNC, VA, SC, PA, NY, NJ, GA, DE, MD, VT, RI, NH, DC, ME, MA, I: CT, PADD East: 6.6 ; Western Europe Europe ; Western 1.7 3.2 ; II3.6 ; ; Asia ; Asia ; III 8.1 ; Middle East 10.2 ; Middle Europe 22.2 ; Eastern 14.9 million BPCD in 2005. in BPCD million ; IV IV 0.6 ; V 3.2 million BPCD in 2005. in BPCD million I V IV III II From of petroleumof productsamong PADDs Shipments in Million Barrels in 2004 2004 in Barrels Million in Shipments \ To 1185 I 27 7.0 II 123 410 ; North America; North 23 III 52 81 2 IV 20 17 20.6; V

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metin /~   Optimization of Crude OilOptimization Operationsof Crude X. Chen,Grossmann, I. L.Zheng. 2012. A comparativestudy of continuous See Vol.44:141- Engineering, and Civil Computers refineries. inland in operations oil crude of scheduling http://newton.cheme.cmu.edu/interfaces/crudeoil/main.html 67. ChenComparingModelsSchedulingRefineriesby Modules/Refining/ Articles - timemodels for

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