Taking on the world s toughest energy challenges.

Transcription

1 Taking on the world s toughest energy challenges. Texas Industrial Energy Management Forum April 7, 2005 Beaumont, TX Lori Ryerkerk Beaumont Refinery Manager

2 A CORPORATE FOCUS Energy is single largest cash operating expense -- about 50% of total percent of energy in a barrel of crude is required to convert the rest into products ExxonMobil spends over $5 Billion/year for energy to run our operations. Improving energy efficiency is a win-win Extends supply and affordability of energy sources Reduces plant operating costs and greenhouse gas emissions 1

3 IMPROVING ENERGY EFFICIENCY +50% PLANT ENERGY EFFICIENCY +40% +30% +20% +10% +0% Plant energy efficiency improved over 35% from 1973 to 1999 Saved cumulative equivalent of 1.8 billion barrels of crude oil Translates to over 200 million ton decrease in GHG emissions Ongoing initiatives expected to provide step-change improvement Additional investment in highly-efficient cogeneration capacity Implementation of Global Energy Management System (GEMS) 2

4 COGENERATION BENEFITS 100% 75% 50% 25% ENERGY EFFICIENCY Waste Heat Steam Electricity CARBON DIOXIDE EMISSIONS Pounds CO 2 Emitted per MBTU Consumed 0% Simple Cycle Combined Cycle Cogen 0 Coal Heavy Fuel Oil Naphtha Natural Gas Cogeneration nearly twice as efficient as traditional technologies State-of-the-art gas and steam turbine electricity generation Coupled with efficient recovery and utilization of waste heat Natural gas the fuel of choice for reducing carbon dioxide emissions Generates 25-45% less carbon dioxide per B.T.U. consumed Gas-fired cogeneration units utilize about 1/2 the fuel and generate less than 1/3 the carbon dioxide of conventional coal-fired utility plants 3

5 COGENERATION CAPACITY XOM COGEN CAPACITY Megawatts New Existing Over 80 units at 30 locations produce nearly 3000 MW of electricity Efficiency gain sufficient to service about 1 million U.S. residential households GHG emissions reduced nearly 7 million tonnes per year versus alternatives Additional 860 MW planned at sites in United States and Canada Investments totaling $1 billion to increase cogeneration capacity by 30% Potential to further reduce GHG emissions by about 2 million tonnes per year when new capacity fully on line 4

6 Beaumont Cogeneration Plant >$400 Million Investment Three GE Frame 7 FA Gas Turbines (GTG) & Heat Recovery Steam Generators (HRSG) Capacity 3 Million pounds an hour of steam Generates equivalent of 600 MW Electric Power ExxonMobil consumes about half the power generated, rest is sold Provides enough power for every home in Beaumont at a competitive energy cost 5

7 PLANT ENERGY EFFICIENCY ENERGY INDEX TRENDS ENERGY INDEX QUARTILES Energy Index - % US WE AP AVG 1Q US WE AP 1Q 2Q 3Q 4Q Solomon Associates, Inc Solomon Associates, Inc. Energy Index - % Regional industry trend groups improving 0.5% per year on average Top regional performers appear to have lined-out... for now Wide spread between leading-edge and rest of competition Data highlights significant opportunity for many plants 6

8 GLOBAL ENERGY APPROACH - GEMS OBJECTIVES A single, comprehensive Global Energy Management System (GEMS) Utilize a common methodology to identify performance gaps, implement closure plans, sustain progress, and continuously improve results BUSINESS MODEL Operate existing facilities optimally and efficiently through application of best practices Identify economic investment opportunities above an optimized base for step-change improvement Implement strong management systems to sustain progress and drive continuous improvement 7

9 Planning Process Units Equipment Classes Operating Results Management Leadership Organizational Commitment Personal Accountability Continuous Improvement Utility Systems System Performance Capital Projects Stewardship Planning Process Units Equipment Classes Operating Results Management Leadership Organizational Commitment Personal Accountability Continuous Improvement Utility Systems System Performance Capital Projects Stewardship Planning Process Units Equipment Classes Operating Results Management Leadership Organizational Commitment Personal Accountability Continuous Improvement Utility Systems System Performance Capital Projects Stewardship Planning Process Units Equipment Classes Operating Results Management Leadership Organizational Commitment Personal Accountability Continuous Improvement Utility Systems System Performance Capital Projects Stewardship GEMS DEVELOPMENT Energy Management System Energy Management System Energy Management System Energy Management System Process Units Major Equipment Utilities Systems Project Design Best practices documented in 12 volume set of manuals Contain 1200 pages and identify over 200 key energy variables Cover process units, major equipment, and utilities systems Focus on key energy-related aspects of operations and maintenance Also incorporate energy efficiency into project design of new facilities 8

10 GEMS MEASUREMENT Corporate and Plant Management Global Measures Plant / Site Energy Index Energy Expense Profitability Business Teams Process Engineers Equipment Specialists Diagnostic Indicators Area / Complex Unit level performance Lost Opportunity Shift Supervision Console Operators Field Operators Key Energy Variables Unit / Equipment Targets & Handles Actionable Lost Opportunity 9

11 GEMS ROLLOUT PROCESS 3-6 Months Preparation Preparation Site Orientation Select & Train Team Gather & Review Data Arrange Logistics 6-10 Weeks Execution Operations Improvements Process Units Major Equipment Utilities Systems Facilities Enhancements Optimizations Modifications Additions Transfer of Ownership Site GEMS Years Implementation Deliverables Gap Assessment Gap Closing Options Cost / Benefit Analysis Milestone Plan

12 GEMS ROLLOUT RESULTS Gap Closing Options 100% 80% 60% 40% 20% Uneconomic Self-Assessments Formal Rollouts 100% 80% 60% 40% 20% Distribution of Benefits Major Equipment Utilities Systems Process Units No/Low Investment Requires Investment 0% 0% Assessments identified economic gap closing options Process Units total nearly 50% -- mainly investment-related Utilities Systems account for over 30% -- mix of no/low and investment items Major Equipment total 20% -- many no/low investment options Remaining opportunity not economic to address with existing technology at current energy prices Potential savings equal to 15-20% of plant energy bills on average About half of the benefits identified require little or no investment to capture 11

13 GEMS Conclusions Utility Systems is usually largest opportunity for improvement. Achieving and maintaining energy benefits requires a lot of hard work during preparation, deployment, implementation and sustainment phases. Key requirements are: Management approval of plans and integration into overall improvement plans. Clear ownership of each line item. Strong leadership from both local and regional management to drive implementation and sustain results. High quality technical support. Continuous improvement through measurement, stewardship, networking and periodic reassessments. 12

14 BEAUMONT REFINERY RESULTS Energy Intensity Index (EII) US 1Q Avg Beaumont Performance Refinery GEMS Prize Capture M$/Year Original Rollout 45 Items Dropped (13) Items Added 11 Benefits Captured (18) Opportunity Remaining Additional benefits expected to result from more investments and new opportunities Progress underway at other ExxonMobil refineries and chemical plants worldwide. 13

15 Low Cost Opportunities What type of opportunities can you capture for low costs? Control Furnace excess air Minimize stripping steam Don t over reflux towers Fix out of service energy recovery equipment- Air preheaters, expanders, bypassed 2002 exchangers, 2004 leaking steam letdowns,... Fix steam leaks Fix steam traps Clean the right exchangers when they foul, etc... It s not rocket science; it is hard work. 14