Hdpetroleum has developed a smallscale waste oil regeneration unit, providing a profitable and sustainable solution for the recycling of waste oil. The text also provides a detailed introduction to refinery engineering topics, ranging from the basic principles and unit operations to overall refinery economics. Petroleum crude oil composition by weight hydrocarbon average range paraffins 30% 15 to 60% naphthenes 49% 30 to 60% aromatics 15% 3 to 30% asphaltics 6% remainder petroleum is used mostly, by volume, for producing fuel oiland petrol, both important primary energy sources. World petroleum council guide petrochemicals and refining saipem is a leading global general contractor, with a full range of project management, engineering, procurement, construction and installation services, with distinctive capabilities in the design and execution of largescale offshore. Because the design and construction of new processing units entail several years lead time, refiners are reluctant to commit these dollars for equipment that may no longer meet certain conditions when the units come on stream. Bring oil industry traffic to your ho scale railroad with the walthers cornerstone united petroleum refining oil refinery kit. Small scale oil refinery supplied by oil mill machinery.
Introduction economies of scale eos are the key determinants of market structure and entryfor any organization. A textbook example was the significant price differential. Saipems activity included also some very novel technology. How economies of scale produced the big oil companies we know. The company operates as a jv between exxon mobil corporation and royal dutch shell plc. Within north america, recent demand for refined petroleum products has been flat to declining and is forecast to continue on this path. Refining petroleum refining petroleum is the process of converting crude oil or bitumen into more useful products, such as fuel or asphalt. Crude oil density is measured using a specific gravity scale developed by the. Small scale oil refinery always refers to a process of removing of gums, waxes, phosphatides and free fatty acid f. World petroleum council guide petrochemicals and refining saipem is a leading global general contractor, with a full range of project management, engineering, procurement, construction and installation services, with distinctive capabilities in the design and execution of large scale offshore. Economies of scale in petroleum refining, 19471984. This work highlights contemporary approaches to resource utilization and provides comprehensive coverage of technological advances in residuum conversion. A catalog record for this book is available from the library of congress. The results support stiglers original conclusion of a saucershaped longrun average cost curve when his technique is duplicated on the full time series.
Hdpetroleum has developed a smallscale waste oil regeneration unit, providing a profitable and sustainable solution for the recycling of waste oil our technology creates opportunity for many regions and industries to be part of the solution, while creating local employment and reducing the environmental impact of waste oil. The invention of the massproduced automobile in the early 20th century further increased demand for petroleum. Particular focus was given to the new roles and skills and tools that are needed to achieve reasonable study of any petroleum project. Energy and environmental profile of the us petroleum refining. Refining petroleum is the process of converting crude oil or bitumen into more useful products, such as fuel or asphalt. Utilization of associated petroleum gas via smallscale power. Based on the fundamentals of thermodynamics and kinetics, the text develops the scientific background needed. Petroleum refining processes petroleum refinery in anacortes, washington cc. Aug 24, 2016 the term economies of scale might as well have been invented for the oil and gas industries. The gas oils go to conversion units, where they are broken down into lighter gasoline, distillate streams. Economic evaluation of petroleum projects basic aspects.
Orlandi encyclopedia of life support systems eolss as regards the offer and the demand. This fully revised fourth edition is a complete compendium of licensable. How economies of scale produced the big oil companies we. Growing refining overcapacity has resulted in recent refin. Hdpetroleum canadian technology, global opportunities.
Icf international 9300 lee highway fairfax, va 22031 usa tel. The details of refinery operations differ from location to location, but virtually all refineries share two basic processes for separating crude oil into the various product components. Brief history of the petroleum industry and petroleum refining prior to the 19th century, petroleum was known and utilized in various fashions in babylon, egypt, china, persia, rome and azerbaijan. It also involves highrisk economic activities, and likewise. The survivor test to determine scale economies in an industry is applied to the u. Petroleum refineries have grown rapidly in complexity and so, too, the refinery operations. His refining experiments were successful and by 1851, kier produced a product called carbon oil, a fuel oil which burned with little smoke and odor. The task leader of the study is silvana tordo lead energy economist, oil, gas and. Our technology creates opportunity for many regions and industries to be part of the solution, while creating local employment and reducing the environmental impact of waste oil. Fundamentals of petroleum refining provides a thorough and balanced introduction to refinery engineering topics, from basic concepts and unit operations to.
The book includes topics such as clean fuels, gasification, biofuels. It is commonly refined into various types of fuels. We will concentrate on the economies which may be achieved within a particular plant. The joint venture jv handbook ihs consulting strategic. The objective is to transform their economies into international trade and financial centers through improved efficiency and taking advantage of the economies of scale alobaidan, 2008. Be prepared to fill in the copious quantities of gaps in information. To impart uniform colur by removing of coloring pigments and to get rid of unpleasant smell from the oil by removing of odiferous matter. This kit has been carefully designed to capture the realism of a prototype oil refinery in a size that works on most layouts. The phrase bigger is better found in the history of economics which trace the history of economies of scale. Request pdf fundamentals of petroleum refining fundamentals of petroleum.
Economies of scale and alumina refining tws services. How do economies of scope and economies of scale differ. Petroleum refiners must face billiondollar investments in equipment in order to meet everchanging environmental requirements. The downstream sector involves crude oil refining to oil products to final user or petrochemicals. Components of petroleum are separated using a technique called fractional distillation, i.
Economies which arise from the firm increasing its plant size. Pdf economies of scale and the new technology of daily. Mueller abstract the survivor test to determine scale economies in an industry is applied to the u. External economies of scale is occur outside of the firm, within an industry in form of merger and acquisition or expansion or adding more productservice in the firms offerings. Petroleum is used mostly, by volume, for producing fuel oiland petrol, both important primary energy sources. Meyers was manager of chemical process technology at trw and is now president of ramtech limited. However, economies of scale may also arise from an increase in the number of plants of a firm, irrespective of whether the firm continues to produce the same product in the new plants or diversifies. The economics of petroleum refining canadian fuels association. Fundamentals of petroleum refining presents the fundamentals of thermodynamics and kinetics, and it explains the scientific background essential for understanding refinery operations. Exxon is the worlds largest refiner with interest in 32 refineries worldwide with net distillation capacity of 5. Petroleum refining processes are those chemical engineering processes and other facilities used in petroleum refineries also referred to as oil refineries to transform petroleum crude oil into useful products such as liquefied petroleum gas lpg, gasoline or petrol, kerosene, jet fuel, diesel oil and fuel oils.
Understanding the business of processing crude oil. Walter seigmund, wikimedia commons petroleum refining processes are those chemical engineering processes and other facilities used in petroleum refineries also referred to as oil refineries to transform petroleum crude oil into useful products such as liquefied petroleum gas lpg, gasoline or. It would cost you billions of dollars to sell that first gallon. Meyers is the inventor or coinventor of a number of broadly used engineering processes, and has managed projects in nearly every facet of the petroleum refining industry. Petroleum refineries are large scale industrial complexes that produce saleable petroleum products from crude oil and sometimes other feedstocks like biomass. Economies of scale, cost optimization, risk management, commercial viability.
Cost structure of petroleum refining industry in kuwait has been examined, with specific focus on factor substitution, and economies of scale and utilisation. Economies of scale and alumina refining the rationale provided for an increase in the production capacity of a greenfield, brownfield or existing bauxite and alumina project is often that the increase results in improved project economics 1 as reflected in npv, irr, and vir. Railroads are vital to refinery operations, from the switchers that move cars, to the mainline freights that hustle finished products to market. The refining process separates, breaks, reshapes and recombines the molecules of crude oil into valueadded products such as gasoline, diesel and aviation fuel. The term economies of scale might as well have been invented for the oil and gas industries.
May 06, 2019 learn about economies of scope and economies of scale, the difference between the two economic concepts, and how they offer cost advantages to companies. This article presents basic aspects related to the economic evaluation process such as concepts and requirements as well as the nature of petroleum projects. Russia, 92194 hugescale caspian oil deal signed, 103194 long term oil. Petroleum projects which involve different activities.
Common terms and expressions used in standard economic analyses. The top countries of supplier is china, from which the percentage of small scale petroleum refinery supply is 100% respectively. Economies of scale and scope in petroleum refining. Commercial banking expansion by the burgan bank in kuwait was a clear indication of the nature of expansion of scale economies in the banking industry. Utilization of associated petroleum gas via smallscale. Evaluation of petroleum, thermal properties of petroleum fractions, important products, properties and test methods. Petroleum projects the petroleum industry consists of different activities related to the exploitation of the oil and gas resources under and above the ground exploration, development, production, refining, gas processing, as well. Fundamentals of petroleum refining provides a thorough and balanced introduction to refinery engineering topics, from basic concepts and unit operations to overall refinery economics, planning and control. The economies of scale derive from exxons global footprint. The changing oil landscape 3 oil market developments 4 the oil price in historical context 4 the future lower price of oil 5 global refining operations 6 new global landscape 6 international refined product markets 8 outlook for mid and downstream operations 8 growing refined product markets 8. Think about how much it would cost to start a new company with the vision of prospecting and drilling for oil, refining it, and selling it as gasoline.
This authoritative resource will prove essential for anyone who needs current, expertly written coverage of the latest developments in the petroleum refining process industry. Basic petroleum economics mai 2004 ppm 2nd workshop of the china case study 2 investment decisions investment decisions are among the most important decisions that a companygovernment can take capital intensive irreversible high riskuncertainty. Learn about economies of scope and economies of scale, the difference between the two economic concepts, and how they offer cost advantages to companies. Exxon is the worlds largest refiner with interest in 32 refineries worldwide with. Refineries process crude oils, which have different types of hydrocarbons with carbon chains of different lengths, into a broad range of refined products. Two pretreatment technologies were described for associated petroleum gas utilization via power generation. When a company reduces costs, time for completion and increases production, internal economies of scale achieved.
Crude oil comes out of the ground with impurities, from sulfur to sand. Introduction to petroleum economics is about the process of gathering project data, calculating whether a project should proceed and delivering recommendations. Evaluating the economic performance of the petroleum refining industry is. Either type might be either internal or external to the firm. Distribution of products of petroleum refining in the united states. Introduction, products, refinerys configurations, hydrogen technologies faculty of chemical engineering and technology university of zagreb ante jukic zavod za tehnologiju nafte i petrokemiju hr0 zagreb, savska cesta 16, p. Fundamentals of petroleum refining request pdf researchgate. Petroleum refining and the prod uction of ulsg and ulsd october 24, 2011 page 2 2. A survivor principle time series analysis by james e. Petroleum refineries are largescale industrial complexes that produce saleable petroleum products from crude oil and sometimes other feedstocks like biomass. This has been done by estimating translog cost functions, both long. Economies of scale are an important factor in refinery prof. Leffler wins out because his process descriptions are fairly detailed compared to the others. A time series covering every refinery for the period 19471984 is used.
Unless you want incomplete details on the subject of petroleum refining, buy leffler, not this text. Basic economic conditions of the oil industry supply demand high capital intensity and high risk low price elasticity high scale and scope economies high income elasticity. Prior to the exxon mobil merger, the largest nongovernmental oil company was royal dutch shell, a joint venture of the royal dutch petroleum company and the shell transport and trading company. A wide variety of small scale petroleum refinery options are available to you, there are 1 suppliers who sells small scale petroleum refinery on, mainly located in asia. The integrated oil operations industry is a worldwide industry where economies of scale provide significant operational efficiencies. Economies of scale with diagram economics discussion. Fundamentals of petroleum refining provides a thorough and balanced introduction to refinery engineering topics, from basic concepts and unit operations to overall refinery economics, planning and.
Petroleum refining at a glance petroleum refining is a unique and critical link in the petroleum supply chain, from the wellhead to the pump. Economies of scale may depend on the scale of operations within a nation e. Some modern petroleum refineries process as much as 800,000 to 900,000 barrels 127,000 to 143,000 cubic meters per day of crude oil. Infineum has achieved great success in the market through a shared strategic agenda of its two shareholders, diligent execution, and economies of scale. Dehydration and desalting of crudes, heating of crude pipe still heaters, distillation of petroleum, blending of gasoline. However, the published information on the refinery.
However, we argue that the technique is misleading. Review of industrial organization volume 5, number 3. The other links add value to petroleum mainly by moving and storing it e. It discusses the science of petroleum economics, starting from squareone, the tools of the trade that petroleum economists use, day in and day out, and also its application. American petroleum institute, basic petroleum data book, section viii, table 11, august. However, of the others, this is a good reference book for the subject. It illustrates state of theart engineering methods for the refinement of heavy oils, bitumen, and other highsulphur feedstocks. Book calls this increased productivity of variable inputs economies of scale more likely when production is capital intensive as markets increase in size, economies of scale enable specialization larger markets lead to specialized firms firm may switch to in house production due to economies of scale 12. The others, including petroleum refining, technology and economics, by james gary, glenn handwerk, and mark kaiser, refining processes handbook, by surinder parkash, and even the venerable petroleum processing handbook, by bland and davidson. Nov 22, 20 the economies of scale derive from exxons global footprint. The publisher offers special discounts on bulk orders of this book.
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