Summary
Crude Oil Quality Association
New Orleans , LA
October 7, 2004

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

A complete attendance listing is also available from the Director.

Legal Review of Anti-Trust - Harry Giles, COQA Director, 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”.

An Update on Crude Oil Corrosivity Measurement was presented by Doug Eberle of Southwest Research Institute (SwRI).  Opportunity crudes with high TAN values are becoming more prominent in the market. These crudes are typically offered at a discount due to the perception of high corrosivity even though there is a known lack of correlation between TAN and corrosivity.  Traditional methods to measure corrosivity are not accurate enough for refiners to predict possible corrosivity or for producers to show their crude is not potentially corrosive.  SwRI has been working on a real time test using Radioactive Tracer Technology.  This test works with high shear stress and high velocity conditions and requires a relatively small sample volume.  SwRI has also developed a lower cost screening method utilizing high temperature autoclave techniques.  This test does not provide real time data (although the entire test can be completed in about 4 hours) and is currently only applicable for low shear stress.  However, the results are highly sensitive (in the 1ppb range) and can capture initial and longer term corrosion rates.  In addition, adhesive corrosion products can be measured separately from soluble corrosion products allowing film buildup mechanisms to be investigated.  Possible applications for this new technique include taking advantage of opportunity crudes (with high TAN that may or may not be corrosive to your refinery), cargo by cargo monitoring to minimize risk,  supporting propriety models for specific refinery metallurgy, crude blending optimization, and more effective use of corrosion inhibitors.

Wax Appearance Temperature in Crude Oil – Klaus Weisfennig of BakerPetrolite spoke to us about Wax Appearance Temperature (WAT) in crude oil.  WAT is defined as the highest temperature in which wax crystals appear.  WAT is similar to cloud point, a standard test for distillates and other lighter petroleum products.  However, standard cloud point tests are not directly applicable to crude oils due to their opaque nature.  Wax can be a problem in crude shipments causing build up on vessel walls leading go on board losses.  WAT could also responsible for clogging on pipelines and refinery lines.  There are several test methods available for WAT but they are not totally standardized.  For example, the rate of cooling applied to the sample is important but there is no formal consensus as to what that rate should be.  CPM (Cross-Polarization Microscopy) and Visual Assessment are two of the methods Klaus discussed.  Scott Fenwick of Intertek noted another method, DSC (Differential Scanning Calorimetry), IP389, the only standardized test method available. 

The PTI Crude Information Management System (CIMS) is a database for central storage of information on crudes.  It can be linked directly to Haverly’s assay viewer.  CIMS is an internet based system and can be used by different viewers (traders, process engineers, supply coordinators, economic analysts) to stay current with changes in existing crude grades, observe API gravity trends, know when new fields are discovered and be aware of market availability.  CIMS contains information on crude by name, location (including maps), loadports, reserves, whole crude properties, published assay data, production and export rates, producers, operators, monthly API tracking, historical API trends and new grades.  The online system can search and sort by these criteria and or as specified by the user.  A proprietary section can be developed for a customer to share refinery experiences, inspection reports, new assay information, etc.  More information on PTI's service can be found at www.petrotechintel.com or contact Patrice Perkins (pdperki@vastnet.net).

  Web Based Assay Viewing - Haverly Systems Inc. - View this Document**********
**(Requires free Adobe Acrobat Reader)

PTI Crude Information Management System - PetroTechIntel - View this Document********
**(Requires free Adobe Acrobat Reader)

Z-BaSICTechnology for Crude oil Transparency was presented by Jim Bunger of James W. Bunger & Associates. The Z-BaSIC system describes the molecular composition of a crude oil. At the molecular level, crude oil can be characterized by the molecular weight distribution of the various types of hydrocarbons and heteroatoms (N, S, O, metals).    The information is compiled in a "cp" (for composition-property) file that is an accurate representation of the constituents of the crude oil with respect to compound types and their distribution, simulated distillation yields, elemental composition (C, H, N, S, O and metals), density and NMR hydrogen types.  The cp file can be used to produce assays, LP model inputs, simulator inputs etc. Importantly, all data produced from a given 'cp' is reconciled and feasible because the data are derived from fundamentals.  In practice, reference 'cp' files are generated for crudes of interest to the refiner or shipper.  The 'cp' file is kept current by on-line or laboratory monitoring of density, sulfur and viscosity. Other properties such as NMR, vapor pressure, RI, etc. can be used to improve accuracy.  The adjusted 'cp' file, utilized to produce assays, LP model or simulator inputs, gives the refiner, pipeline, producer, etc, an always-current view of the crude in as much detail as desired.

Z-BaSIC Technology - James W. Bunger & Associates - View this Document**********
**(Requires free Adobe Acrobat Reader)

Pat Morgan of ConocoPhillips distributed a document on methanol.  It will be published as part of the COQA’s paper on Chemical Components and Their Adverse Effects.  All members are urged to add their comments to any of the components listed and / or introduce other chemical components.  The paper is available on coqa-inc.org.  Please contact the COQA Director if you have anything to add.  

Chemical Components and Their Adverse Effects - View this Document************
**(Requires free Adobe Acrobat Reader)

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

·        The new CAPP (Canadian Association of Petroleum Producers) technical committee is working on establishing a limit for volatile phosphorous in crude oil.  Once a limit is in place, this will bring the Phosphorus in Crude project to a successful conclusion.

·        CAPP has approved funding to complete the development of the Olefins by 1H-NMR method originally proposed by the CCQTA.  Method development is expected to be completed by the end of the first quarter of 2005.

·        Work continues on identifying the role of unknown organic sediment in the processing of heavy oil in Phase III of the Heavy Oil BS&W project.

·        Phase II of the TAN project is underway, with follow up work to improve reproducibility of TAN and NAN test measurements, as well as work on measurement of the corrosivity of oilsands syn-bit and two benchmark heavy crude oils for comparison purposes.

·        Three new projects are in development.  One new project will focus on modifying existing test methods to make them more applicable to heavy crude oils.  The second project will examine/develop methods for accurate prediction of heavy oil emulsion viscosities.  The third project is intended to identify, measure and quantify the impact of crude oil contamination on refineries as an industry.  This information will be used to provide focus to quality initiatives, adopt an industry based approach to contaminant management, and enlist the support of government agencies with environmental and energy conservation issues.

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

·        Continued shortages and high prices in the diluent (gas condensate) markets are driving the expanding use of synthetic crude to reduce the viscosity of bitumen based crudes to pipeline specs.

·        Crude stream consolidating is underway and the number of smaller streams available is anticipated to decline in 2005.

·        The discussions on the tolling agreement between CAPP and Enbridge Pipeline continue.  Maintaining crude quality on the delivery system is a priority in these discussions.

·        Funds have been approved to develop   an H-NMR olefin test that is more applicable to Canadian crude oils.

·        A review of Crude Monitor.ca is underway.  Please contact your company’s Calgary representative and let them how useful this sampling and testing website is. 

Report on the Communication Forum – Draft versions of the Education Forums for refining and non-technical personnel were reviewed at the morning meeting.  The comments received will be incorporated and the Forums distributed for further evaluation to all who attended the Subcommittee meeting.   If you wish to comment on these education programs, but did not attend, please contact Harry Giles at dir.coqa@verizon.net for a copy.  Comments will be gathered this last time and the final programs presented during the morning session of the January COQA meeting.  The Education Forum for pipeline professionals is currently available on coqa-inc.org

Report from the COQA Steering Committee – Locale for the 2005 meetings will be New Orleans (January 27), Chicago (Spring), and Houston (Fall).  The Steering Committee also opted to raise the attendance fee to $75, beginning in 2005.  A new subcommittee, on Canadian Crude Oil Quality, will start up in January.  We will also hold a one time (most likely) meeting to decide which crude oil characteristics are most important to most refiners.  Please plan on attending all or any of the Subcommittee meetings.

COQA Web Site and Budget Report - The facilitator presented the financial report for the first nine 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, ConocoPhillips, 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 January 27, 2005.

Harry Giles, COQA Director