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Summary
Crude Oil Quality Association
New Orleans , LA
January 27, 2005

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”.

Mr. Nick Lightfoot of Arizona Instruments introduced the group to his company and their new method of Water Measurement.  Arizona Instruments has been in business since 1981 and has extensive experience in moisture analyzers.  Their new Vapor Pro line correlates to Karl Fischer in precision and accuracy but uses no toxic reagents.  Volatiles from the sample are carried by a dry carrier gas through the sensor block containing the moisture-specific polymer capacitance sensor.  The instrument displays real time test results in ppm, micrograms, percentage and graphs.  Arizona Instruments is currently undergoing the process necessary for certification from ASTM/API.  They invite all COQA members to send in samples to their laboratory to develop test parameters.  You are also invited to trial the instrument in your own facility.  Nick can be reached at nlightfoot@azic.com.  

Arizona Instruments - View this Document******
**(Requires free Adobe Acrobat Reader)

John Mauer of Valero Energy Corporation led an Open Discussion on the Blending of Foreign Crude with Onshore Domestic Sweet Crude.  Such blending operations could lead to refinery problems due to the presence of substances not normally found in the domestic sweet stream.  This is especially true considering the general lack of specifications on such quality parameters as acidity. 

Several other issues surrounding this topic came to light:
·       
Possible survey on how many refiners share this concern
·        “Full Disclosure” requirement – the ethical dilemma of labeling and selling a foreign crude as domestic
·       
Enforcement is difficult
·       
Tracing a crude to its source can be difficult
·       
What (and who) defines a common stream (Capline lists six different criteria for LLS, Basin has 2 for WTI)
·       
Cost of testing / monitoring and who pays
·        Possibility of a quality bank  

The COQA decided that enough interest was generated to warrant further discussion in a smaller working group.  Therefore, a Domestic Trading Center subcommittee will be initiated at the next COQA meeting.

Crude Oil Storage Discussion - View this Document******
**(Requires free Adobe Acrobat Reader)

Dr. Iraj Isaac Rahmim of E-Meta Venture, Inc. shared information on Consulting and Training Services Available to the Petroleum Industry.  E-Meta Venture is based in Houston and offers Operations Support, Business Development, Project Implementation and Customized Training.  The training workshops of interest to our group cover a wide variety of subject matter such as:
·       
Hydrocarbon Production Operations
·       
Crude Oil and Petroleum Fractions – Characterization, Properties and Implications
·       
Petroleum Refining Technology and Operations
·       
Economics of Refinery Planning, Blending and Scheduling
·       
Global Petroleum Economics and Business Practices

Any of the sessions E-Meta Venture offers can be customized to apply to, for example, specific production situations or a targeted refining kit.  For more information, please contact Isaac at iir@e-metaventure.com.  

Consultant Services - View this Document******
**(Requires free Adobe Acrobat Reader)

Silicon in Crude Oil was presented by Larry Kremer of Baker Petrolite.  There are several terms for silicon: 
Silicon the element – Si
Silica – SiO2
Silicate 
Silicone

There are also surfactants and emulsion breakers that contain Silicon (Si).  Test methods to determine the amount and specific type of silicon are very dependent on the sample preparation (injection, ashing, bomb digestions) and environment (reducing and oxidizing).  Also complicating the testing efforts are the presence of filterable solids, water soluble silicates, and organo-silicon compounds.  In most cases, although the level of Si can be fairly well determined, speciation is not practical.  Baker Petrolite's test protocol includes definition of the Si species by solubility class, water washing to remove water soluble Si, filtering to remove particulate Si, direct injection and bomb digestion sample preparation and ICP detection methodology.

 Silicon in Crude Oil - View this Document******
**(Requires free Adobe Acrobat Reader)

An Overview of Naphthenic Acids and Their Contributions to Corrosion Effects was presented by Mr. Terry Thompson of Intertek Caleb Brett.  Naphthenic acid is the general term for all organic acids found naturally in crude oils.  There is no direct correlation between naphthenic acid and TAN, which is the measurement of all acidic species.  Crudes with a high TAN number can have low naphthenic acid content and vice-versa.  Naphthenic acid is just one source of corrosion from crude.  Its corrosion effects are characterized by deep pitting and metal impingement.  The corrosive potentials from naphthenic acids are a function of concentration, temperature and shear stress.  The density and velocity of the liquid, the degree of vaporization and the diameter of the pipe also all contribute to just how corrosive the naphthenic acids will prove to be.  Even a small amount of naphthenic acid can greatly accelerate corrosion in a specific area of the refinery, depending on the aforementioned variables.

Testing for naphthenic acids is not a well documented process.  TAN is not a good correlation.  UOP 565 and 567 are not very sensitive and are not specific to naphthenic acids.  Liquid Chromatographic extraction and Infrared Spectroscopic quantification are specific for naphthenic acids but the results are based on a generic calibration standard and cannot account for the different species of naphthenic acids that are present.  Mass spectrometry can be very specific to naphthenic acids and yields a good profile of the species found.  However, it is a difficult test with significant instrumentation required.  Negative Ion Microelectrospray is a relatively new method that yields promising results with relatively easy preparation, but availability is limited.  Solid Phase Extraction coupled with conventional GC-MS is a literature-referenced process that is specific to identifying and quantifying naphthenic acids from about C12 to C30.   While some lighter naphthenic acids can be lost during sample prep, it is a solid compromise of selectivity, analysis speed, and cost.  Intertek will continue their work in this area and Terry will update us when additional test results can be shared.

Testing for Naphthenic Acids - View this Document******
**(Requires free Adobe Acrobat Reader)

Methanol in Crude using Near-Infrared (NIR) Analysis was discussed by Mr. Jerry Evans of EVCO Consulting.  A set of washed crude samples with known amounts of methanol injected was analyzed using an NIR analyzer designed by LT Industries.  The scanned results were used to create a chemometrics model.  The correlation of the model to the known methanol was much closer than the results from a standard GC procedure for methanol measurement.  Also, it was noted that the NIR method was better able to account for methanol in crude with higher, and varying, water content.  This could be a significant improvement in the accuracy of methanol measurement.   The modeling process is in the early stages yet and EVCO Consulting and LT Industries expect that further refinement of the correlations will be evident with additional modeling on a fuller range of methanol and water contents.

Methanol Testing by NIR Analyzer - 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.
·       
Phosphorous in Crude Project – the goal is to reduce the impact of volatile phosphate esters on refinery fouling.  CAPP (Canadian Association of Petroleum Producers) is currently studying how best to achieve the reduction in crude volatile phosphorus (pipeline specification or recommended practice).  New approaches to the reduction of volatile phosphorous continue to be developed.
·       
Heavy Oil BS&W Project – the goal is to understand the role of “organic sediment” on heavy oil processability.  This project is at the sample collection stage. Sampling locations include raw crude, desalted crude, desalter interface and brine during normal and upset operating conditions.
·       
TAN Project - the goal is to develop an understating of the relative corrosivity of Athabasca oilsands bitumen by benchmarking with other heavy crudes.  Samples are currently in the process of corrosivity testing. Additional work is underway to understand the sources of poor reproducibility of TAN and NAN in bitumen samples.
·       
Olefins Method Development Project – the goal is to develop a new method for measurement of olefins in crude oil and condensate by H1–NMR.  Testing on crude is almost complete.
·       
Emulsion Viscosity Project – the goal is to summarize the available knowledge and current research on the factors involved in emulsion stability and viscosity.  The project is underway with six participating companies.
·       
Possible future projects include a heavy oil methods manual to develop a list of test methods applicable to heavy crude analysis and a possible survey of refineries processing Canadian crude oil to identify common contamination issues.

Listing of CCQTA Project Funders - View this Document******
**(Requires free Adobe Acrobat Reader)

Mr. Bill Lywood of Crude Quality, Inc. informed us that CAPP has approved funding for CrudeMonitor.ca through 2005 and that CAPP remains committed to quality. CAPP's quality initiatives are currently focused on methods to produce higher levels of consistency in the quality of delivered grades.  These initiatives are anticipated to improve netbacks to producers and also to improve access to markets for Western Canadian crude oil products.  Western Canadian Select (WCS, a combination of streams from four independent producers) has begun shipping.  Consistent quality was, and remains, a cornerstone in the development of this stream.  CAPP is continuing its negotiations with Enbridge to include quality as part of the Incentive Tolling Agreement. CAPP is also addressing contamination issues through the Crude Quality Working Group and the CCQTA.

Report on the Canadian Subcommittee – The first meeting of the COQA subcommittee on Canadian crude oil quality met in the morning.  Ron Fisher of BP is spearheading this group.  He opened the meeting with an overview of the current Canadian crude types and their logistics.  Tim Blackmore of Omnicon Consultants reviewed Canadian organizations that have an interest in quality and also overviewed CCQTA’s latest projects.  Bill Lywood of Crude Quality Inc. talked about the new Canadian common stream, Western Canadian Select (WCS).  WCS is a blend of crudes which will reduce the number of streams and allow for more effective usage of the existing tankage in the pipeline delivery system out of Western Canada .    WCS will resemble Bow River and data on the stream will be published on CrudeMonitor.ca.  The bulk of the meeting consisted of an open discussion on the issues facing refiners who process Canadian crudes.  Ron will review this list and set priorities to be discussed at the next meeting.

Report on the Communication ForumThe final versions of the Education Forums for refining and non-technical personnel were reviewed at the morning meeting.  All three Forums (pipeline, refining, non-technical) are now published on coqa-inc.org.  Please contact the COQA Director if you would like the programs in PowerPoint format.  The programs are intended for your use in disseminating our message of quality throughout the oil industry.  The slides may be cut and pasted, and your corporate  logos and backgrounds incorporated as necessary to tailor a presentation for your specific use.

Quality Parameters Subcommittee - A listing of important quality parameters was garnered by Harry Giles, COQA Director.  Each attendee at this subcommittee meeting was also asked to complete a questionnaire of the quality parameters most important to their particular situation.  Tish will summarize the findings for discussion at the next meeting.

COQA Web Site and Budget Report - The COQA Director presented the final financial report for 2004 and the 2005 budget.  Many thanks to our 2005 Financial Supporters:

            Associate Members: BakerPetrolite, BSI Inspectorate, ChevronTexaco, Giant Refining, Intertek Caleb Brett, Nalco Energy Services,  US DOE

            Funding members: BP, ConocoPhillips, ExxonMobil Upstream, Gary- Williams, LOOP, Marathon Ashland, Navajo Refining, NCRA, Shell Pipeline, Sunoco, Inc, (R&M)

Harry Giles, COQA Director,  presented an overview of coqa-inc.org.  If you weren’t able to attend this  meeting and would like a copy of this summary, please contact her. 

You may 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 Chicago on May 26, 2005.

Harry Giles, COQA Director