Meeting Archives

Minutes, Crude Oil Quality Association Meetings
New Orleans, 6 March 2008

 Subcommittee Meetings, 9:00 – 11:30 a.m.

 Canadian Crude Oil Quality Subcommittee

The Canadian Crude Quality Sub-committee meeting focused on the following 4 topics.

1.  Review of projects being carried out by the CCQTA:  Phil Heaton of Maxxam Analytics gave overviews of each of the current CCQTA projects.  Some of these projects address concerns brought up by COQA members in previous meetings.  This is one of the drivers for our joint meeting with the CCQTA in Calgary in June 2008.  Phil Heaton's presentation is available on the COQA website.

2.  Review of the COQA Quick Reference Guide to Canadian Crude:  Bill Lywood of Crude Quality Inc. gave an overview of the project methodology and draft components of the reference guide.  The project team primarily used a free WIKI site to share their work and collaborate in building the Guide.  The Guide will consist of two parts, the first lists all of the Alberta grades along with who the key producer(s) are for each grade, where they inject to Enbridge pipeline (which is typically the custody transfer point for U.S. shippers), and how they are produced (SAGD, mined, dilbit, synbit, etc.).  The second part of the guide will contain data on key properties for the crudes and is referred to as Table 1.  The properties chosen for this table were selected by a vote of this project’s participants.  Some discussion was held on the following aspects of data collection for Table 1:

•  A documented process for outlier removal and statistical analysis for the gathered data should be used.

• Yield data should be reported and kept separate based on the distillation method as different simulated distillation methods and TBP distillations often give different yield profiles for the same sample.

• Yields shall be reported as the weight percent off at pre-determined temperatures that define typical key fractions at refineries (i.e. naphtha, middle distillate, vacuum gas oil, vacuum residuum).

• Appropriate disclaimers need to be added to the Quick Reference Guide as we are not warranting that the grades meet the published quality, and to take in to account that seasonal variation, sampling techniques, and lab accuracy and reproducibility have a significant impact on the data set used for Table 1.

A further discussion was held about whether to gather injected or delivered qualities for Table 1.  It was decided to request as many data as COQA members could share from any location, but the data from each location will be kept separate and reported as the average for all data collected for that specific location.

3.  Review of Project Ideas collected at previous meetings:  Ron Fisher of BP reviewed a list of project ideas that were pulled from meeting minutes from the three prior COQA meetings.  This presentation is available on the COQA website.  Meeting attendees were asked for their opinion on whether the COQA should start any new projects at this time, and whether any of the issues in the project list would make good session topics at the joint COQA-CCQTA meeting.  There was no interest to start a new project in the COQA at this time.  Several items were identified as potential meeting topics for Calgary.

• Overview of bitumen production techniques, dilution techniques, and logistics prior to crude injection to Enbridge and other common carrier pipelines.  Do any of these processes impart characteristics to the crude oil that impact the refinery in a significant way (positively or negatively)?

• Detailed discussion on the logistics of Spearhead as there are concerns about degradation on that line.

• Acidity versus Corrosion of Canadian Heavy Oil

• The history of the heavy oil industry with emphasis on how current logistics and markets formed.

• Asphaltene compatibility

4.  Calgary Meeting Planning:  The following ideas for the meeting were pulled from the various discussions:

• Look for speakers on the topics listed in the above item.

• The CCQTA session on TAN-Corrosion might be the best time to address this topic, CCQTA could potentially expand the time slot for this topic and include other speakers on the subject.

• The COQA day will not follow our typical meeting format of sub groups meeting all morning and presentations running all afternoon.  It is recommended to intermingle presentations and time for discussions throughout the day in order to maximize the benefit of having COQA and CCQTA members together.

• There was interest by ~10 meeting attendees in taking a trip to an oil sand production complex – Bill Lywood of Crude Quality will investigate alternatives and convey these in advance of the Calgary meeting.

Respectfully submitted,
Bill Lywood
Crude Quality Inc.

Domestic Trading Center Subcommittee (DTC)

The chairman, John Maurer was unable to attend this meeting.  In his absence Clifford Mills, who has been doing statistical analyses, reviewed the data that he has received to date from testing at Valero’s Ardmore, OK laboratory.  Some of the data provided to him by the laboratory are inconsistent with what is expected for “domestic sweet”, especially those for Ni & V, and Ni/V ratios.  Some of the data obtained by high temperature simulated distillation are also of concern.  It is not known if apparent data anomalies result from samples that have been collected from different locations at Cushing or other factors.

Clifford also presented data recently provided him by BP from Cushing.  These exhibit less variation and are more consistent with known quality of “domestic sweet.”

It was agreed that, if possible, Clifford should visit the Ardmore laboratory to review the test methodology being used.  Sampling points and protocol at Cushing also need to be reviewed.

Above DTC summary from notes taken by Harry Giles at meeting.

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General Meeting, 1:00 – 5:00 p.m.

Following is a summary of the presentations made at the General Meeting and the business transacted at the Steering Committee meeting the previous evening.  Links are provided for copies of the presentations in PDF format.

Technical Presentations

API Committee on Petroleum Measurement.  Sally Goodson of API presented a comprehensive overview of the organizational structure, mission, and objectives of COPM.  COPM provides leadership in developing and maintaining cost effective, state of the art, hydrocarbon measurement standards and programs based on sound technical principles consistent with current measurement technology, recognized business accounting and engineering practices, and industry consensus. To accomplish this, COPM is comprised of a number of subcommittees.  Of these, the work of COMQ, the Committee on Measurement Quality is most directly to the interests of many COQA members.  COMQ develops, approves, and maintains standards pertaining to measurement quality of hydrocarbons.  These include standards on sampling, density determination, and sediment and water determination.  Sally reviewed the relationship of COPM to other international standards bodies such as ISO and ASTM, and provided information of some of the newer COPM publications.

 

 Introduction to ISGOTT 5^th Edition.  Capt. Ed Barsingerhorn, Shell Trading and Shipping Co. (US).  The International Safety Guide for Oil Tankers and Terminals was first published in 1978.  The 5^th edition continues to provide best known safety practices on the operation of oil tankers and terminals, and now embraces a more risk based control philosophy  The 5^th edition also takes account of latest thinking on a number of other issues including tank cleaning, management of the risks associated with the generation of static electricity and stray currents; and the toxicity and toxic effects of benzene and hydrogen sulfide among other topics.  The 5^th edition consists of four sections:  General Information; Tanker Information; Terminal Information; and Management of the Shi-Shore Interface, and includes and interactive CD with the print version.  ISGOTT is the “standard reference work on the safe operation of tankers and the terminals they serve.”

 

Louisiana Offshore Oil Port (LOOP).  Amos Simoncelli, LOOP.   LOOP is the largest point of entry for crude oil coming into the U.S.  It receives crude oil from two sources:

• From large ships through a single point mooring (SPM) located 18 mi offshore in the Gulf of Mexico. The SPM is capable of handling the largest tankers in the world at an offloading rate of 100,000 barrels per hour; and

• By pipeline from domestic deepwater production in the Gulf of Mexico.

LOOP began operations in 1981, and since then has had 7,000 tanker calls delivering 7.7 billion barrels of crude oil.  Currently, it offloads approximately 1.2 million barrels of foreign crude daily, and averages 32 tanker visits per month.  LOOP also handles about 325,000 barrels of domestic crude oil daily from offshore platforms.  At its storage facility at Clovelly, LA, LOOP has eight underground storage caverns in a salt dome and six 600,000 barrel aboveground tanks with six more under construction.  Four outgoing pipelines allow LOOP to distribute crude oil to a number of refiners, mainly along the Gulf Coast and in the Midwest. 

 

Marathon’s Garyville Major Expansion – A Project in Progress.  Dennis Sutton, Marathon Oil Corporation.  ECOL Ltd. began construction of the refinery in 1973.  Construction of the original facilities was completed in 1976 and purchased by Marathon the same year.  It is the last grassroots refinery built in the U.S.  Today, Garyville primarily processes heavy, sour crude oils.  It has the logistical flexibility to allow a variety of domestic and foreign crude oils to be processed.  It is strategically located on the Mississippi River midway between New Orleans and Baton Rouge.  It is uniquely positioned in the Gulf Coast energy infrastructure connecting crude oil and product systems.  Currently, it is the 16^th largest refinery in the U.S. in terms of crude oil throughput.  A 180,000 barrel per day expansion of the refinery is scheduled to begin in 4^th quarter 2009.  This expansion will greatly enhance its ability to process a wide crude oil slate.

 

H2S Abatement and its Impact on Refining.  Dr. Lawrence Kremer, Baker Petrolite.  H2S occurs naturally in many crude oils and can also be generated by various refinery processes.  A number of health, safety, and environmental and other issues are related to its presence including toxicity, corrosion, odor, and fuel quality. Specifications.  Streams containing H2S can be treated at the oilfield, in transshipment, at the refinery, and downstream.  Larry discussed the use of oxidizers, neutralizers, and various reactants for removal.  He then discussed the impacts of H2S on refinery systems and some of the mitigation strategies.  These latter include: 

·         Discontinue crude oil purchase
·         Fix damage
·         Change additive use in field
·         Remove contaminant in refinery; and
·         Monitor and predict problem

Baker Petrolite’s “Prepared To Respond™ Services” provide an effective, quick response to help refiners, traders, terminals, and pipeline companies manage situations where problems with product quality and contamination of petroleum products occur.

 

Searching for Mercury.  Tony Nguyen, Intertek.  In opening his presentation, Tony provided an introduction to Intertek and its worldwide network of testing, inspection, and certification services.  He then reviewed some of the analytical techniques available for determining Hg in liquids and gases, and presented several examples of the use of GC-ICP-MS for determining speciation.  Tony provided several case studies of the determination of Hg to illustrate how adsorption on the walls of sample containers can affect mass balances.  Intertek has developed techniques to allow more accurate measurements of total Hg in hydrocarbon liquids including that sticking to the sample container.  Corroborative analytical techniques provided insight into analytical uncertainty.  It is suggested that all Hg data be re-evaluated if it does not take into consideration this newly confirmed phenomenon of “sticky” mercury.

 

Origin and Nature of Trace Metals in Crude Oil.  Dr. Sebastien Dreyfus, ExxonMobil Upstream Research.  Dr. Dreyfus reported on the origin of some trace elements in crude oil, their presence in porphyrins and metal porphyrins, and factors controlling the proportionality of these in source rocks and petroleum.  An analytical strategy for sample preparation and direct analysis of crude oil by ICP-MS was discussed.  Examples of the use of this strategy to determination of Fe, Ca, Ni and V were provided.  A case study was given of the application of trace element to determination of maturity, biodegradation,  and migration in a reservoir.  The work reported has wide application in both the up- and downstream in: 

• Better understanding fluid interactions in sedimentary basins

• Study of heavy oils

• Characterization of solids and water associated with crude oil

• Control of crude oil, gasoline and diesel quality during refining

• Identification of foulants and deposits in refineries and process plants; and

• Control and quantification of contaminants.

 

Determination of chlorine/chlorides using MWD-XRF.  Ranzy Morgan, XOS, Inc. and Scott Blumenshine, Flint Hill Resources.  XOS markets several application specific X-ray analyzers and X-ray optics and beam systems that have use in elemental and crystalline structure analyses.  One of there analyzers – Sindie – is used for Sulfur in Gasoline and Diesel Fuel by Monochromatic Wavelength Dispersive X-ray Fluorescence Spectrometryin accordance with ASTM D7039.  A compact bench-top instrument using the sample principles as Sindie has been developed for determining chlorine in crude oil.  Scott provided data on the use of this new instrument to determination of organic chlorine in crude oils containing both high and low levels of inorganic chloride.  Various procedures for removing inorganic chlorides prior to determination of organic chlorine were discussed.

 

The general meeting concluded with a Report from the COQA Steering Committee  by Harry Giles, COQA Director.  The steering committee met on the evening of March 5, 2008.  Spiral Software Ltd. was welcomed as a new corporate sponsor and Coffeyville Resources as a new corporate supporter of COQA.  Changes being made to the COQA Website were discussed.  The most recent of these was conversion of the site to HTML format.  Also, a search capability has be added to the site to facilitate finding information, especially in the meeting archives.  An ad hoc committee has been formed to work on expanding COQA membership so that it is more globally encompassing.  The committee will be contacting company representatives to invite and encourage them to participate in our meetings.

The COQA executive is going to investigate the pros and cons of various corporate entities such as and S-corp, LLC, and Not for Profit to determine which of these is best suited for the organization.

The Opportunity Crudes 2008:  Challenges, Benefits, and Processing conference jointly organized by The Hydrocarbon Publishing Company and COQA has received an excellent response from a broad cross section of the industry.  The program covers a range of topics including supply, transportation, analysis, processing, and upgrading.

Next meetings: 

• June 24, 2008 in Calgary, AB, Canada in conjunction with CCQTA 
• October 23, 2008 in San Antonio, TX, in conjunction with the ASTM Crude  Oil Course.

Harry N. Giles
Director, COQA