Refining Economics

Gasworks cmde benzene and the lower boiling liquid products from low temperature carbonization, so-called fresh oil or low temperature spirit, are too low in aromatic hydrocarbon content to be refined economically to synthesis-grade benzene and toluene. Formedy, these fractions were used as a gasoline additive in the 1990s, the lower boiling liquid products are used as fuel at the refinery. 

To develop and refine economic models and inputs required for the HyS process and to develop a business plan that will enable stakeholders to engage potential clients. 

Source W. Qureshi, L. Howell, C.-W. Hung, and J. Xiao, Isodewaxing—Improving Refining Economics, Petroleum Technology Quarterly Summer 17-23 (1996). Table copyrighted by Chevron Corporation and used with permission. 

In most industrial centers air pollution has become a critical problem, and refiners are under pressure to produce lower sulfur fuel oils to meet local standards. This is true in two areas—the Caribbean and Japan —which are also centers of a burgeoning petrochemical industry. Starting with a high sulfur crude, production of low sulfur fuel oil is a costly operation which adversely affects the refiners economic position. Our studies have shown that significant savings can be realized by integrating fuel desulfurization with the production of petrochemical feedstocks. To illustrate, let us consider a desulfurization operation which might be located in Japan. 

It appears obvious that the application of this process will assist the industry in meeting the ever increasing demand for distillate products and at the same time in conserving our crude oil reserves. The ability of the process to refine economically any type of crude would appear to make available for use many crudes not now suitable for conventional refinery operations and thus, again to increase our reserves."(3)... 

Charles R. Marion and James R. Muenger. "Partial Oxidation Syngas Can Help Improve Refining Economics." Energy Progress, Vol. 1, No. 1-4, December 1981, pp. 27-32. 

This section could have been a part of Section 11 Refining Economics, because the most profitable refineries are also the safest and most reliable. Just consider this For a 200,000 barrels-per-day refinery, a minor accident that shuts down the plant for just one week can cost US 3 to 6 million in lost revenue. An accident that damages a major conversion unit can cost between US 80 and US 120 million in lost revenue during the 12-18 months required for reconstruction, plus US 20 to 50 million (or more) in reconstruction expenses. These estimates don t include the cost of repairing damage to the surroimding community. To settle lawsuits and pay penalties for a minor incident that occurred in 1994, a California refiner paid more than US 83 million. 

Since it is doubtful that more refined economic studies on paper may decide whether a new reactor concept is competitive or not, the question is rather to establish if such small differences in the energy costs are likely to compensate for the overall development cost (ref. 6). 

Marion, C.P., Muenger, J.R. 1981. Partial oxidation syngas can help improve refining economics. Energy Prog. l(l-4) 27-32. 

The gradual reduction and ultimate elimination of lead has seen considerable effort by the refiner to maintain the octane numbers at satisfactory levels. In Europe, the conventional unleaded motor fuel, Eurosuper, should have a minimum RON of 95 and a minimum MON of 85. These values were set in 1983 as the result of a technical-economic study called RUFIT (Rational Utilization of Fuels in Private Transport). A compromise was then possible between refining energy expenses and vehicle fuel consumption (Anon., 1983). 

A detailed study of the properties of the potential products is of prime technical and economic importance, because it allows the refiner to have a choice in selecting feedstocks for his different units for separation, transformation and conversion, to set their operating conditions, in order to satisfy the needs of the marketplace in the best ways possible. 

A comparison of overall treatment costs (purchase and refining) for several crude oils enables the refiner to establish his feedstock requirements and to satisfy the market needs under the most economical conditions. 

Refining alone can not, economically, provide a fuel to meet specifications the role of organic lead derivatives has long been to make up the difference between the octane number of the clear fuel and the octane required by legislation. 

J. G. Sikonia, B. R. Shah, and M. A. Ulowet2, "Technical and Economic Assessment of Petroleum, Heavy OH, Shale Oil and Coal Liquid Refining," paper presented at Sjnfuels 3rd Worldwide Symposium, Washington, D.C., Nov. 1—3,1983. 

Each refiner has the flexibiUty to choose the specific formulation to produce based on the economics of the individual refineries. REG meeting the statutory requirements must be sold in the nine areas of the country which have the worst ozone (qv) problem. In addition, all other areas of the country which exceed the ozone NAAQS may elect the REG regulations, and EPA has estimated that 40% of the nation s gasoline should be subject to REG rules (66). 

Alcohol autoxidation is carried out in the range of 70—160°C and 1000—2000 kPa (10—20 atm). These conditions maintain the product and reactants as Hquids and are near optimum for practical hydrogen peroxide production rates. Several additives including acids, nitriles, stabHizers, and sequestered transition-metal oxides reportedly improve process economics. The product mixture, containing hydrogen peroxide, water, acetone, and residual isopropyl alcohol, is separated in a wiped film evaporator. The organics and water are taken overhead and further refined to recover by-product acetone and the... 

Liquid Fuels. Liquid fuels can be obtained as by-products of low temperature carbonization by pyrolysis, solvent refining, or extraction and gasification followed by catalytic conversion of either the coal or the products from the coal. A continuing iaterest ia Hquid fuels has produced activity ia each of these areas (44—46). However, because cmde oil prices have historically remained below the price at which synthetic fuels can be produced, commercialization awaits an economic reversal. 

Steelmaking. Steelmaking is the most economically important slag refining process (see Steel). Pig iron contains up to 4% carbon, 1% manganese, 1%... 

In addition to the reported economic reserves, there are substantial nickel resources which could be amenable to mining and refining once appropriate technology becomes available. The single largest such resource is seabed nodules which contain ca 1% nickel and which could represent up to 800 X 10 t of nickel (see Ocean rawmaterials). 

J. G. Gary and G. E. Handwerk, Petroleum Refining Technology and Economics, Marcel Dekker, Inc., New York, 1984. 

Secondary Platinum-Group Metals. For many PGM appHcations, the actual loss during use of the metal is small, and hence the abihty to recover the PGM efficientiy contributes greatiy to the economics of PGM use. Typical sources of PGM for secondary refining iaclude jewelry and electronics scrap, catalysts, and used equipment, eg, from the glass industry. 

Economic Aspects and Uses. Production and sales values for high purity sodium hydrosulfide are Hsted ia Table 1. These figures exclude the low purity material produced by oil refiners, beHeved to be sold primarily to pulp mills. Estimates of uses of NaHS ia the United States for 1994 are as shown (3,4) ... 

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