How Valero Is Delivering Information For Refining Operations ARC World Industry Forum Remote Operations Management Stephen Russell Director of Automation & Process Control Valero Energy Corporation Page 2 Orlando, February 9, 2010
Outline Valero Overview Business Challenges Operations Information Environment Operations Excellence Initiatives The Energy Management Environment Page 3
Who Is Valero? One of the Largest Refiners in North America Fortune 10 Company No. 1 Fortune s Best Big Companies to Work For for two consecutive years United Way Spirit of America Winner twice Downstream Business of the Year by 2007 Platts Global Energy Awards Major Bio Fuels Producer Page 4 Since 1997,Valero has grown from... 1 to 15 Refineries $5 to $120+ Billion in Annual Revenues 0.1 to 3.0 Million BPD of Refining Capacity 1,000 to 22,000 Employees
Outline Valero Overview Business Challenges Operations Information Environment Operations Excellence Initiatives Energy Management Environment Page 5
Business Challenges A very complex Refining System Landscape A large and diverse refining system and supply chain to optimize Differing business processes from site to site Disparate systems and applications across the refining circuit i for similar il business functions Data and Report inconsistencies varying sources, difficult to reconcile, lack of aggregated information 4 types of data historians, 3 types of lab systems, dozens of other unique legacy systems and databases, proprietary technologies, highly inconsistent data Complex and costly support requirements for multiple l systems Interface complexities Page 6 Result: Management was choking on data, but starving for information
Key Business Needs Corporate Need for Consistent Key Refinery Operations Metrics Environmental, Health & Safety data Inventory Data Crude, Gasoline, Distillate, Feedstock Energy Stewardship Electricity, Steam, Natural Gas Unit Operations Data Crude, Coker, Reformer, FCC, Other Reliability Data Incidents, etc. In order to bring: Transparency of Refining Operations for headquarters Comparison of performance with same yardstick Coordinated Operations across Refineries Supply Chain Optimization Page 7
Post-Acquisition Landscape R Refinery Corrosion Track Emissions Historians Reliability LabSys PSM Safety Applications Page 8
Outline Valero Overview Business Challenges Operations Information Environment Operations Excellence Initiatives The Energy Management Environment Page 9
Rationalized/Simplified Structure Integrated Refinery Information Back-Bone Goals Standardize data acquisition and service enable 3 rd party vendor applications Easy and timely means to access mission-critical data Corporate dashboards with visibility into refinery processes Page 10
Refinery Operations Dashboard Operations (3 level drilldown) Health and Safety Energy Optimization Inventory Management Process Safety Metrics SAP Manufacturing Integration and Intelligence (MII) Page 11
Roles Oriented Dashboards Page 12
The Size Of The Challenge Typical Refinery (Averages) Tags Required: 40 Units per Refinery 25 New Tags per Unit (Ratios, Targets, etc.) Complex MII Displays Required: One 7 levels of Drill Down 44 displays per Refinery FCC Alky SRU/ARU/ SWS Login Site for Corp Superuser Login Site for Houston Superuser Login Site for Houston Board Operators Corporate Level Energy Corporate View of Houston Energy Houston Refinery Level Energy Complex Two Crude/Vac ROSE Boiler House Lights by Site Dials (Same three that are on the RefOpsDashboard) Charts/Lights/Textboxes Lights by Complex Unit(s) Dials/Charts Unifiner A GDU B&D Unifiner C Reformer Level 1 Valero Totals (15 Refineries): Level 2 15,000 Level New 3 Tags 650 MII Displays Level 4 Complex Five Complex Level Utility Balance Closures Operator Level Level 5 Utitlity ULSD Dials/Charts/Textboxes Level 6 FCC Alky ARU/SRU/ SWS Crude/ Vac ROSE Boiler House Unifiner A GDU B&D Unifiner C Reformer ULSD Unit Level Dials/DataGrid Level 7 FCC FG FCC Steam FCC Electricity Alky Steam Alky Electricity ARU#1 Steam ARU#2 Steam SRU B Steam SRU C Steam SWS Steam Crude/ Vac FG Crude\ Vac Steam ROSE FG ROSE Electricity Boiler House FG Unifiner A FG Unifiner A Steam GDU B&D FG GDU B&D Electricity Unifiner C FG Unifiner C Steam Reformer FG ULSD FG ULSD Steam ULSD Electricity FCC FCC FCC Pg Seq 4, UI Ord 1,2 Page 13 Crude/ Crude\ Level 8 ULSD ULSD Alky Alky Vac Vac ROSE ROSE Reformer FG Steam FG Stm Pg Seq 1, UI Ord 1,2 Pg Seq 2, Pg Seq 3, Pg Seq 5, Pg Seq 7, Pg Seq 8, Pg Seq 6, UI Ord 1,2 UI Ord 1,2 UI Ord 1,2 UI Ord 1,2 UI Ord 1,2 UI Ord 1,2 Question: How do you organize a project to create such material?
Outline Valero Overview Business Challenges Operations Information Environment Operations Excellence Initiatives The Energy Management Environment Page 14
Refining Operations Dashboard Process Safety Management Environmental, Health & Safety data Daily yshift Reports Blending and Scheduling Crude, Gasoline, Operational Excellence Initiatives Enabled Distillate, Feedstock Energy Stewardship Electricity, Steam, Natural Gas Unit Health Monitoring Crude, Coker, Reformer, FCC, Chemicals Consumption Reliability Data Incidents, Risk Management, MTTR, MTBF, Bad Actors Completed In Progress Scoping Page 15
Outline Valero Overview Business Challenges Operations Information Environment Operations Excellence Initiatives The Energy Management Environment Page 16
Key Business Imperative - Energy Ensure Sustainability of energy cost reductions achieved dby Operational Excellence projects at the refineries, by providing tools to Control Room Operators that will make it possible to: 1. Know how much each unit is consuming (Actual demand) 2. Know how much each unit should be using (Target) 3. Adjust Actual to match Target 4. Over $100MM in annualized savings to date Page 17
Vision For Solution 1. An Energy Dashboard would display for each unit: Energy ratios Current Demand (Actual): Energy consumed vs. charge (MBTU/bbl) Energy ratio Dynamic Targets (Target) Theoretical energy required vs. charge (MBTU/bbl) basedonhistoryandstandards and standards 2. Energy ratios and their targets would be updated every hour. They are calculated for Fired Fuel, Steam and Electricity 2. Control Room Operators are trained to utilize the Refinery Control System to investigate the causes for deviation between Actual and Target and take corrective action Page 18
Hierarchical Levels Level 6 Details and Trends by Unit and denergy Type Page 19
Unit Level Level 7 Controllable and Non-Controllable Variables Page 20
Energy Dashboard Format Audience Dynamic displays Operators, Supervisors, Process Engineers, Energy Group Objectives Energy performance visual indicators Historical trends (7 and 30 days) Navigation with increasing levels of details Page 21
Conclusions and Recommendations 1. The technology is there: many tools, many paths 2. Understand dthe business needs and ddrivers 1. Good information for good and timely business decisions 3. Understand the customer(s) need(s) 1. Users must be educated on the IT capabilities (and limitations), and the developers must be educated on the business needs 2. Use an iterative process to arrive at a solid specification 4. Begin with a vision of the final product in mind 1. Maintain flexibility for the inevitable Can we add/change this?.. 5. Drive standardization but don t risk losing important details and distinctions necessary for good decision making 6. Ultimately, you need to drill down to detailed, live data at the process level seamlessly that s the point of attack 7. Don t discount the life cycle management cost and effort Page 22