Meeting Archives

Morning Session 

Domestic Trading Center Subcommittee (DTC)

“Domestic Sweet / WTI Specifications”, Dennis Sutton, Marathon Petroleum.  Dennis provided a brief review of the Subcommittee’s activities to date. At least two major terminal operators at Cushing are routinely testing WTI/Domestic Sweet for the complete (Nymex and COQA recommended) specifications. Data on numerous batches received by Marathon clearly indicate all of the recommended specifications are routinely being met. In closing, Dennis noted that:

• The COQA recommended specifications are meaningful to refiners, practical to implement, routinely achievable, and do not limit liquidity of the stream;
• Laboratories are available in Cushing that can routinely and accurately monitor the specifications;
• The recommended specifications have been validated by considerable independent work over the past 18 months.

In discussion following Mr. Sutton’s presentation, Dan Brusstar of the CME Group commented that they are looking to collecting samples and publishing analytical results – without attribution to source – on a quarterly basis on their website. This testing program will be aimed at showing the COQA specifications are being met. He noted that a formal announcement on adoption of the specifications could be made in the “next couple of months.” 

 

“CCQTA Update”, Dennis Sutton, Marathon Petroleum.  In opening his presentation, Dennis reported that CCQTA typically does not fund projects, but acts as a facilitator by providing meeting venues, phone and web-conferencing support, and third party accounting to project groups. Currently, CCQTA has 59 member companies. Their participation in various projects was listed in a table accompanying Dennis’ presentation. Several new projects are under consideration, namely:

• H₂S PVT – Modeling of H₂S in vapor space using liquid phase data;
• Bitumen Dewatering – Develop a method for “accurately” measuring bitumen density;
• Shrinkage Calculation – Upgrade existing methods for use with dilbits; and
• TVP/RVP – Develop and accepted correlation between RVP and TVP for Canadian crudes.

In closing, Dennis discussed plans for the CCQTA/COQA joint meeting scheduled for the week of June 18, 2012. It will be held at the Kananaskis Resort, located 90 km west of Calgary, Alberta. At the Tulsa meeting in October 2012, a question was raised about possibly having a trip to Fort McMurray to view some of the oil sands mine operations. This question was raised again, but it does not seem to be practicable from logistical and cost considerations.

 

“H₂S Measurement in Crude”, Bill Lywood, Crude Quality Inc. This CCQTA project has the following objectives:

• Develop framework for analysis and sampling that provides accurate H₂S values, and reduces analytical error and minimizes technician variability; and
• Educate transportation operators of H₂S potential of crude oils in their systems to health and safety  issues.

Bill discussed the several standard test methods are available for determination of H2S in liquid and in headspace of petroleum. Each of these was used in a study of eight samples, and the results presented. The discrepancy in results between some of the test methods could result from interferences such as presence of inhibitors, mercaptans, and H₂S scavengers in the samples studied. Future testing will include additional compositional analyses. In closing, Bill asked for experience / insights into interferences that might be complicating determination such as presence of H₂S scavengers, amine corrosion inhibitors, or biocides. 

 

 “Enbridge USGC Access Plan: Infrastructure, Commodities & Quality”, Ashok Anand, Enbridge Pipeline. Ashok opened his presentation with CAPP’s forecast of Western Canadian crude oil production to 2020. Over the next 8 – 10 years, volumes of heavy oil sands streams could double with combined volumes of all streams reaching 4.5 million b/d. Enbridge transports a number of different streams through its system, ranging from heavy (19°API) to condensate (60°API). To maintain quality of these, Enbridge:

 

•  Maintains turbulent flow to extent possible to minimize interfacial mixing;
•  Employs batch pigs in flow lines with laminar flow;
•  Requires a batch size of a minimum of 60 mb; and
•  Uses a scheduling system that minimizes differences between sequential batches.
•  In tanks, bottom crossings of different qualities are avoided to extent possible.

 At its Cushing, OK terminal, Enbridge routinely tests its WTI for the current Nymex specifications. More recently, they have begun testing these for the COQA recommended additional specifications. Ashok presented data spanning nearly one year for eight of the specifications clearly illustrating how they routinely met these. In closing, Ashok briefly discussed two of their projects: reversal of the Seaway Pipeline and the proposed Flanagan South pipeline. This latter will parallel the existing Spearhead pipeline and run from Flanagan, IL to Cushing, OK.

 

“True Vapor Pressure of Crude Oils: A look at Issues and Possibilities”, Rod Lawrence, Magellan Midstream Partners. Vapor pressure is becoming a more critical characteristic for petroleum, but related requirements for its determination are not consistent between various regulatory agencies. The various methods for determining vapor pressure all have issues that need to be addressed. Among these are:

 

• ASTM D5191 does not include crude oil in its scope, yet it is often used for determining crude oil vapor pressure;
• ASTM D2879, as well, is not scoped for crude oil and includes a degassing step that negates its use;
• ASTM D6377, while specific for crude oils, included only a limited number in the interlaboratory study used in developing its precision and bias.
• EPA AP42 algorithms have a number of issues relative to their scope of application

Rod noted that some of today’s instruments, notably that for ASTM D6377, has the capability to measure vapor pressure at temperatures of interest and, consequently, has the potential to eliminate the need for the AP42 correlations. Regulatory agencies are, apparently, seeking industry input to enhance their models. In this regard, industry has the resources and expertise needed, but a consensus is needed on establishing true vapor pressure as the basis. 

 

“Crude Oil Vapor Pressure Monitoring Program at the US Strategic Petroleum Reserve”, David Lord (speaker), Sandia National Laboratories, Ray Allen, Allen Energy Services, and David Rudeen, GRAM, Inc.. In the early 1990’s, operators at SPR sites observed crude oil foaming and boiling when unpressurized samples were collected from caverns. This led to the recognition that a need existed to quantify volatility of stocks being drawn down into aboveground atmospheric tanks. Initially, a number of pressurized samples were collected and their bubble points determined with results ranging from 10 – 100 psia.  Following this, a mini-skid gas/oil separator (TVP-95) was developed for field use which, over time, has been refined and automated. Data from this is used in a “constant composition expansion (CCE)” model, where three points are fitted to a curve and bubble point pressure calculated. Examples from several SPR caverns were used to illustrate application of this model. To validate CCE approach in determining vapor pressure, results have been compared with those of an ASTM D6377 analyzer modified to include three expansion at three operator settable expansion ratios.

Reid vapor pressure is not adequate for characterizing true vapor pressure of SPR crude oil stocks for determining their compliance with emissions requirements. The TVP-95 separator results currently serve as the program’s experimental baseline. The CCE approach is used for inline monitoring degasification of SPR stocks. This has proven to have high reproducibility, with results more compatible with use in equation-of-state models. 

 

Afternoon Session

“PAC Corporate Profile”, Tom Adamski, PAC. The PAC group of companies, which includes Alcor, Antek, Herzog, ISL, PetroSpec, and others, encompass a range of petroleum analytical technologies spread across three business segments. PAC has four technology centers in the U.S. and Europe providing elemental analyses, distillation, and gas chromatography services among others.

In his presentation, Tom focused on the AC CNS SIMDIS system for crude oil analysis pioneered by PAC. This provides for rapid characterization of sulfur, nitrogen, and hydrocarbon distributions across a wide crude oil boiling range. Three channels provide simultaneous readouts for these from a single injection, as illustrated in the presentation. The instrumentation is of a robust design and uses proven technology; the SIMDIS software is user friendly; and the system employs known methods, correlations, and calculations. The software used allows for customizable cut-point reporting. ing.

 

“OGJ’s Forecast & Review 2012”, Bob Tippee, Oil & Gas Journal.  Bob discussed a number of factors that could impact supply & demand in the U.S. and worldwide this year. He illustrated his presentation with numerous tables and graphs using data from a number of sources, including EIA, IEA, OPEC, and the Centre for Global Energy Studies. Among the key points of Bob’s presentation:

• Price of crude oil is going to be driven by demand and by the Iran situation.
• Growth in oil demand is mostly outside OECD countries.
• Refining closures in the U.S., Europe, the Caribbean, and Japan are likely to have a profound effect on price and availability of products in certain regions, and will probably result in shifts in supplies.
  Several Iran scenarios were discussed and their possible impact on crude oil price.
• U.S. shale plays have changed dramatically in recent years, and are reshaping supply.
  New markets need to be found for U.S. gas.
• The Baker Hughes rig count has been increasing steadily since 2009, and is forecast to exceed 2008’s count this year.
• Well completions and total footage in 2012 are expected to exceed 2011 levels. 

 

“Process and Laboratory Analysis for Chlorine and Transition Metals in Crude Oil and Aqueous Matrices”, Berry Beumer, XOS.  Monochromatic wavelength dispersive X-ray fluorescence (MWD XRF) can be used to determine numerous elements in both oil and aqueous matrices. XOX has developed a series of on-line and bench-top instruments for single-element determination at sub-ppm levels of sulfur, silicon, phosphorus, and total chlorine. In his presentation, Berry focused on XOS’ on-line instruments which are available for both low viscosity fluids such as diesel fuel and high viscosity streams such as crude oil.

XOS also has a multi-element bench-top analyzer useful for determination of transition elements by high definition XRF. Development is underway of an instrument for on-line multi-element determination of process streams.

 

”Watco Companies, LLC. Crude by Rail”, Allan Roach, Watco Companies. The Watco Companies are:

·         The largest railcar repair shop service provider in U.S.
·         3rd largest short line railroad operator in U.S.
·         3rd largest industrial contract switching provider; and
·         Annually move more than 600,000 car loads over 4,500 track miles

Their system includes mechanical, switching, and transload / intermodal services, and port operations in 28 states. In 2010, Watco partnering with Kinder Morgan in an agreement for joint venture crude by rail services. 

In his presentation, Allan described several crude oil terminal projects and the advantages that offer over pipelines.
 

“Role of Enzymes in Rapid Degradation of Petroleum Hydrocarbons”, Jim Kritchever, Eco-Cure, Inc. Eco-Cure has developed a proprietary enzyme that has proven effective in rapidly degrading organic wastes including petroleum hydrocarbons. The enzyme has been shown to be harmless to humans and contains no chemicals or ingredients included on OSHA’s “Director’s List.” In use, it has been found effective e in reducing COD, TSS, and BOD.

Jim cited several examples of its use in various applications. In livestock operations the product is used to reduce odor, solids, and flies, and for decomposition of livestock corpses. The product has been used in several incidents where it was found effective in solubilizing spilled oils. It has also been used for odor reduction in a wastewater treatment plant, and for remediating oil in soil projects.

 

“US Shale Liquids Surge: Implications for the Crude Oil Value Chain”, Dr. Praveen Gunaseelan (speaker), Vantage Point Advisors and Matt Thundyil, Transcend Solutions. The two companies conducted a market screening assessment to determine the impact of the booming US shale sector on the crude oil value chain. From this, they concluded that the widening oil / gas price ratio is driving the surge in shale liquids. The rapid liquids growth is, in turn, driving midstream investment. Refiners broadly benefit from the surge of tight oil and cheap gas. The latter is contributing to availability of cheap hydrogen which will help reduce the cost of processing heavy, sour crude oils. But, surging supplies of NGL’s are competing with refinery light-ends and naphtha. In the long term, LNG and GTL will be poised to increasingly compete with conventional, crude-oil based transportation fuels.uels.

 

“Economic Treatment of ‘Whole Crude Oil’ for Odor/Corrosion Control & Value Added Marketing”, Malcolm Sharpe, Merichem. Currently, two technologies are available to deodorize crude oils and lessen their corrosivity by reducing their mercaptans content. So called “indirect” methods involve fractionation or use of scavengers – both of which are costly. Merichem offers a “direct” method that employs a patented Fiber Film ® contactor technology. Treatment can be done at the wellhead, midstream, or end-stream. This is also well suited for use at remote locations. A combination of their Napfining / Mericat C technology achieves near complete removal of acidic impurities. 

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This concluded the March 1, 2012 meeting of the COQA.  The next meeting of the association will be joint with the Canadian Crude Quality Technical Association, in Kananaskis, AB on June 19 – 20, 2012. Details will be posted to the COQA website as they become available.

Harry N. Giles

Director, COQA