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Summary
Crude Oil Quality Association
Houston , TX
May 27, 2004

Details on the meeting presentation can be found on coqa-inc.org or by contacting the COQA facilitator, Harry Giles, at dir.coqa@verizon.net.

Legal Review of Anti-Trust - Harry Giles, COQA Facilitator, reminded all attendees to review the Standard Setting Rules prior to each meeting.  The Standard Setting Rules can be found on coqa-inc.org under “Information”.

Petroleum Biodegradation and Impact on Crude Oil Quality - Dr. Lloyd Wenger of ExxonMobil Upstream Research Co. presented his paper on oil biodegradation.  Oils from shallower, cooler (less than 80 degrees C) reservoirs tend to be progressively more biodegraded than those in hotter, deeper reservoirs.  Fresh, oxygenated waters in contact with reservoir oilcan cause extensive aerobic biodegradation, diminishing the viability and value of the oil field as API gravity and distillate yields decrease and parameters such as viscosity, sulfur, acidity, metals, etc. increase. Anaerobic oil biodegradation has also been documented.  Bacterial activity, and subsequent deterioration of the oil, is strongly controlled by temperature, but is also impacted by formation-water salinity, availability of free or combined oxygen, general characteristics of the reservoir and the timing of hydrocarbon charge.  The prediction of the quality characteristics of an oil in reservoir is based on a detailed evaluation of reservoir charge, temperature history, and local controls.   Lloyd's paper was published in SPE Reservoir Evaluation & Engineering, v.5(5), October 2002, p. 375-383.

Mr. Dean Trierwiler of Haverly showed us their Crude Oil Scheduling Decision Technology.  Haverly has been providing optimization systems since 1962.  Currently, one of their major focuses is refinery and crude supply planning and scheduling.  The scheduling model uses existing technology such as GANTT charts and Excel spreadsheets but the software is designed expressly for individual customers.  Specific business rules and logistical events, the scope of scheduling to be covered, logic standards, etc. are established with each customer.  Dean shared two examples of the customized tool that is developed as a result of this extensive research.  The examples highlighted the ability of the Scheduling Module to predict the characteristics of a crude after tank and line mixing, and how that prediction can be utilized with Haverly’s other software to estimate assay-quality information, suitable for LP modeling.

Haverly Oil Scheduling Module - View this Document****
**(Requires free Adobe Acrobat Reader)

Corrosion by High Acid Crudes was presented by Dr. Saaledine Tebbal of SET Laboratories, Inc.  The results of corrosivity testing on several different crudes were analyzed to determine which technique or combination of techniques best predict high temperature corrosivity.  For example, Electrospray – Mass Spectrometry analyses were shown to increase the reliability in the determination of naphthenic acid content when compared to only utilizing the more typical methods.  These types of analyses are also very useful in predicting where the acids are concentrating in the distillation unit.   Another predictive tool is the hydrogen sulfide evolution.  Research is still needed to confidently predict the degree of corrosion but these new analyses, which require only a 100ml sample, yield more replicable results when evaluating the feasibility of running opportunity crudes.

Corrosion by High Acid Crudes - SET Laboratories - View this Document****
**(Requires free Adobe Acrobat Reader)

Aaron Dillard introduced the paper “Crude Oil Contaminants and Adverse Chemical Components and Their Effect on Crude Oil Quality”.  This paper currently contains information on Organic Chlorides, Vanadium, Iron, Basic Nitrogen, Naphthenic Acid, Phenolic Compounds and Zinc.  Origins, problems, testing methods, desired levels are discussed for each contaminant / chemical component.  The paper is posted on coqa-inc.org.  It is the intent of the COQA to add to this informational document with more extensive details on the named substances and with new substances that other members have found to be problem causing.  Please contact the COQA Director at dir.coqa@verizon.net with your comments.

Canadian Crude Quality Initiatives - Mr. Tim Blackmore of Omnicon Associates represented the Canadian Crude Quality Technical Association.

·        Phosphorous continues to be a concern at several refineries.  The new CAPP (Canadian Association of Petroleum Producers) technical committee proposes to limit phosphorous in crude by issuing a Best Practices document  urging member companies to employ available technology to eliminate volatile phosphorous in the mixed blend  sweet  stream.

·        Work on isolating and identifying unknown organic sediment is continuing. 

·        TAN and NAN measurement for all crudes and distillation cuts will completed soon.  However, there was resistance to sharing information among labs in regards to method modifications.

·        Best Practices were presented to the members of the tank cleaning project.  A proposal was made to continue this project and monitor actual tank-cleaning batches and their impact on final destination refineries.

Mr. Bill Lywood of Crude Quality, Inc. updated the COQA on other Canadian quality initiatives. 

·        Enbridge Pipeline and CAPP are negotiating a tolling agreement with quality incentives, specifically regarding degradation management.

·        The first shipment of consolidated like-streams is planned for the end of this year.  This should improve the consistency of the aggregate stream with larger batches leading to less degradation. 

·        A tank surcharge program has gained acceptance.  This will also encourage larger batches and help reduce degradation.

·        Enbridge Pipeline has recommended a better-defined process for approving new crude oil streams.

·        The CAPP Crude Oil Committee has formed a working group to specifically focus on quality issues.  The group will first address phosphorous in crude and olefin testing, both proposed by the CCQTA.

Bruce Kennedy (CCQTA/Petro-Canada) posed two questions to the group:

First Question:

What are refiners doing in the way of routine analysis to protect against receiving crudes with specific problems?  Particularly marine receipts, but could apply to pipelines as well.

Specifically:
1. Organic chlorides. Some assays from North Africa actually include a non-zero specification for organic chlorides.  In other crudes, organic chlorides may be present, but not reported.  Refiners need to verify if they are present and understand what a non-zero level really means to their equipment.

2. H2S - Some Mediterranean crudes have exceedingly high levels of H2S - 2,000 to 4,000 ppm.  These levels not only are a significant concern to marine crews’ safety, but are also too high for offloading ports to accept.  The crude can be treated with H2S scavenger chemistry, but this has to be done at sea after the issue has been identified.

3. Chemicals used in production vary in different parts of the world and may end up in crude.  A database of "crudes and chemistries of concern" needs to be established to help refiners identify and mitigate potential contamination.

Second question:

Is anyone aware of any field treatment of crude to reduce or remove metals - specifically nickel and vanadium?

Petro-Canada has an interest a crude which has elevated nickel and is researching ways to reduce it in the field.

Report on the Water Measurement Subcommittee – At our last meeting, Harry Giles of the US DOE presented data from the ASTM crosscheck on water measurement.  He was requested at that time to investigate the possibility that the reliability of a Karl Fischer test versus a distillation test method is crude dependent.  Harry looked into this issue and found no correlation between crude type and water test method.   ConocoPhillips and the US DOE are collaborating on a study to determine if there is any correlation between BS&W by centrifuge and water by Karl Fischer combined with sediment by extraction.  Harry will look at the ASTM crosscheck for both water and sediment data to use in the correlation study.

Report on the Communication ForumThe Education Forum for pipeline personnel is available at coqa-inc.org.  A draft version of the program for refining personnel was discussed in the morning meeting.  Several excellent changes were made.  The revised draft is available from the COQA Director.  The COQA Director and Larry Kremer of Baker Petrolite presented a modified version of the Education Forum for pipeline professionals at the NPRA National Convention in March.  Many thanks to Larry for volunteering to help and also to Jeff Hazle of the NPRA for suggesting our forum as a possible presentation.

Report from the COQA Steering Committee - A listing of websites that have crude quality data has been posted on coqa-inc.org.  Also posted is a summary of the COQA Crude Oil Incident Tracking Forms.  Additions to either posting are welcome, please contact the COQA Director. 

COQA Web Site and Budget Report - The facilitator presented the financial report for the first four months of 2004.  Many thanks to our 2004 Financial Supporters:

            Associate Members: BakerPetrolite, Giant Refining, Intertek Testing Services, Nalco Energy Services, Saybolt / Core Labs, US DOE

            Funding members: BP, Conoco Phillips, Gary Williams, LOOP, Marathon Ashland, Navajo, NCRA, Shell Pipeline, Sun Oil Company

Please review past minutes (with detailed attachments), our Retrospective Review and Mission Statement and a complete membership listing (name, company, email, and phone) on coqa-inc.org.  All members are encouraged to take advantage of our forum page.

Next Meeting - The next meeting will be held in New Orleans on October 7, 2004.

Harry Giles, COQA Director