Refining ABC Kjetil Hauge Head of Technical Oil Analysis Oil Trading & Supply
Outline Introduction to oil refining Distillation Refinery configurations Topping Hydroskimming Cracking Refinery development Refinery Margins -> Sandrine
Introduction to Crude oil Refining - Distillation 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Alba Brent Statfjord Sleipner VAC. RES. VAC. GO HGO LGO KERO HVN LVN GAS
Introduction to Crude oil Refining - Distillation 100 % 140 90 % 80 % 120 70 % 100 60 % 50 % 40 % $/bbl 80 60 Physc Diesel HSFO 3.5% Brent Dated 30 % 40 20 % 20 10 % 0 % Alba Brent Statfjord Sleipner VAC. RES. VAC. GO HGO LGO KERO HVN LVN GAS 0 2003 2004 2005 2006 2007 2008 2009
Refinery type/complexity World Refining Capacities (Total = 90 662 kbpd) 33 293 1192 2 377 8 306 Topping Hydroskimming Cracking Other Majority Cracking refineries Increasing share of more complex refineries Topping refineries - small share 45 494 Source: PIRA
World Refining Capacities (Total = 90 662 kbpd) Topping refinery 1192 2 377 8 306 Topping Hydroskimming Cracking Other Products 33 293 Light naphtha 45 494 CRUDE- DISTILLATION Heavy naphtha Source: PIRA 100 Crude Kerosin 80 Gasoil Diesel / gasoil wt% 60 40 Diesel/Gasoil SRFO Atmospheric residue 20 HFO Straight run fuel oil 0 TOP A Topping Refinery is the simplest kind of oil refinery. It only splits the crude oil in its main components. A large portion of SR fuel oil.
World Refining Capacities (Total = 90 662 kbpd) Hydroskimming refinery Products 33 293 1192 2 377 8 306 Topping Hydroskimming Cracking Other Light naphtha 45 494 CRUDE- DISTILLATION Heavy naphtha REFORMER Reformate 100 Source: PIRA Crude Kerosine Hydrogen 80 Atmospheric residue Gasoil HYDRO- TREATER Diesel / gasoil wt% 60 40 Diesel/Gasoil SRFO HFO 20 Heavy fuel oil 0 TOP HSK A Hydroskimming Refinery is a little more advanced. It has a naphtha reformer (REF) and can produce gasoline, but maintain a high SR fuel oil production.
A FCC Refinery -is a medium upgraded refinery -can convert SR fuel oil to gasoline and diesel in the FCC unit. There is still some fuel oil production. World Refining Capacities (Total = 90 662 kbpd) 1192 2 377 8 306 Topping Hydroskimming Cracking Catalytic cracking (FCC) refinery Products 33 293 Other 45 494 Source: PIRA Light naphtha ISOMERI- SATION Isomerate 100 Crude CRUDE- DISTILLATION Heavy naphtha Kerosine REFORMER H2 Reformate Iso-butane ALKY- LATION Alkylate 80 60 wt% Gasoil HYDRO- TREATER Diesel / gasoil 40 Atmospheric residue Vacuum distillation VGO CATALYTIC CRACKER (FCC) Vacuum Residue Gasoil FCC naphtha C3/C4 Olefines Heavy fuel oill 20 0 TOP HSK FCC HCR HFO SRFO Diesel/Gasoil
World Refining Capacities (Total = 90 662 kbpd) 1192 2 377 8 306 Topping Hydroskimming Cracking refinery Products 33 293 Other 45 494 Source: PIRA Light naphtha ISOMERI- SATION Isomerate 100 Crude CRUDE- DISTILLATION Heavy naphtha Kerosine REFORMER H2 Reformate Iso-butane ALKY- LATION Alkylate 80 60 wt% 40 Gasoil HYDRO- TREATER Diesel / gasoil 20 Atmospheric residue Vacuum distillation VGO CATALYTIC CRACKER (FCC) Gasoil FCC naphtha C3/C4 Olefines Heavy fuel oill 0 TOP HSK FCC HCR/ VRES Coker Diesel/gasoil Heavy fuel oil HFO Diesel/Gasoil SRFO A Coker Refinery is the most advanced oil refinery. It upgrades most of the fuel oil to lighther products
refinery Distribution (Total = 33 293 kbpd) Additional coking capacity 2000 -> 2009 192 141 709 NAM LAM Europe Middle East China Rest Asia Africa FSU ANS 2024 1839 318 9 NAM LAM Middle East China Rest Asia Africa ANS
Refinery development - History Refinery capacity changes 2000 -> 2009 kbpd 9000 8000 7000 6000 5000 4000 3000 Other Cracking Hydroskimming Topping Major changes in refinery capacity in period 2000 2009 Cracking an close to 100% of the increase Hydroskimming decreasing Have seen marginal refinery drifting towards Cracking type refineries 2000 1000 0-1000
Refinery development Going forward Expect increasing demand on distillates on expense of gasoline Best margins expected on refineries producing higher share of distillates ( and Hydrocracking) Weaker margins on refineries producing high share of gasoline (FCC) Effectivisation of the refinery business expected (i.e. some of the refineries with lowest margins expected to close down) Cracking type refineries marginal refinery
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