Crude Oil Assay
For the Non - Technical
June 2014
Bruce Carlile
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Crude Oil Characterization - Program
• Bureau Veritas Inspectorate - Overview
• What is Crude Assay?
• Crude Oil Types
• Crude Assay Types
• Mirroring the Refinery
• Data Integrity
• Summary
• Contact Details and References
© - Copyright 2012 Bureau Veritas – All rights reserved
Bureau Veritas Corporate Presentation - 2014
2
Bureau Veritas at a Glance
Eight Global Businesses
■
Established in 1828
■
A global leader in conformity assessment
and certification services in the areas of:
■
■
Quality
■
Health, Safety, & Environment
■
Social Responsibility
■
■
Marine 8%
Consumer Products
11%
Industry
23%
Commodities 19%
2013 revenue: €4,2bn
Certification
More than 1330 offices and
laboratories in 140 countries
9%
Construction
11%
59,000 employees
Eight global businesses providing
a complete set of services including:
■
■
Government Services
& International Trade 7%
Group Key Figures
■
■
Revenue breakdown
Inspection, testing, audit, certification, risk
management, outsourcing and training
services
Servicing 400,000 customers across a
wide range of end markets
In-Service
Inspection
& Verification
12%
Broad Geographical Presence
Revenue breakdown
Asia Pacific
28%
EMEA
29%
The Americas
23%
France
20%
• Europe – excluding France
• Middle-East
• Africa
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Extensive Geographic Footprint
EMEA
France
Asia-Pacific
Americas
 460 offices and
laboratories
 180 offices and
laboratories
 420 offices and
laboratories
 270 offices and
laboratories
 22,400 staff
 7,600 staff
 20,00 staff
 16,000 staff
 22 countries
 30 countries
 87 countries
• Europe – excluding France
• Middle-East
• Africa
Global network comprising of 59,000 employees in 1330 offices and
laboratories across 140 countries
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Scope of Services Across Three Major Sectors
Oil & Petrochemicals
Metals & Minerals
Agri Commodities &
Fertilizers
Upstream services
Trade inspections
Agri Commodities
■
■
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Testing of exploration samples; Grade
control; Mineral processing testing;
Outsourcing of mine-site labs.
Trade services
■
Supervision of weighing; Sampling;
Pre-shipment inspections; Load and
discharge inspections.
Laboratory Testing
■
Commercial settlement assays
accredited to ISO 17025.
Laboratory testing
■
Product quality testing at global, highly
acclaimed laboratory network.
■
Laboratory outsourcing & technical
support.
■
Product quality oversight.
■
4 key product categories: crude,
petroleum products, bio-fuels and
petrochemicals.
Key tested products
■
Coal; Non ferrous metals; Steel raw
materials; Precious metals.
Blending and cargo treatment
■
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Inspection and sampling of petroleum
and chemical cargoes on loading and
discharge to verify quantity and quality of
the cargo.
Services to enhance oil product quality
and meet certain specifications.
Bureau Veritas Corporate Presentation - 2014
Inspections and testing of grains,
oilseeds, sugar, vegetable oils, feedingstuffs, bio-fuels, glycerin, cotton and
other commodities.
Fertilizers
■
Quality and quantity determination.
Supervision & Surveying
■
Quality control and screening,
Pre-shipment inspections, Loading and
discharge supervision, Contractual
sampling and sealing, Supervision of
weighing, Draft survey and tank Gauging
and Damage surveys .
Worldwide Network
■
Fully accredited laboratories available
24/7 and located at every key point in
the supply chain from hold and hatch
surveys to loading and discharge
supervision.
5
What is Crude Assay?
How do we determine quality?
A crude oil assay is basically the chemical evaluation of crude oil feedstock's by
petroleum testing laboratories/research centers.
Each crude oil type has unique molecular, chemical characteristics.




No crude oil type is identical and have
crucial differences
Results provide detailed hydrocarbon analysis
data for refiners, oil traders & producers
Data helps refineries determine if a crude oil is
compatible for a given refineries configuration
or if the crude yield, quality, petroleum product
make or fractions are economical (MNRV).
Comprehensive view of the “whole crude” and
each fraction of interest.
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Crude Oil Types
The varying crude oil types & sources:
Conventional Crudes


Virgin Crudes
“Dumbbell Crudes” (Blended)
Unconventional Crudes

Tight Sands or Shale Plays

Bio-Mass

Bitumen and Synthetic crudes
•Eagle Ford
38° - 50°
19.5° -70 API°
•Ninian,
North
Sea 36°
API
Opportunity Crudes
•Bakken Shale
42.5 API
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•Arabian
Light 33°
API
•Boscan,
Venezuela
•10° API
•Empire Mix,
Louisiana Gulf
•30° API
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Crude Assay Types
Type
Cost
Sample
Quantity
Delivery
Define
Applications
Comprehensive
Assays, Miniassays &
Fractional
Evaluations
$10 $30K
Up to 10
Gallons
3 to 5 Weeks
Detailed analysis on
multiple distillation
fractions (TBP). Used to
value crudes based on
specific refinery
configurations and
products specs (MNRVs).
Provide Refiner with value
of the crude (marginal net
refining value). Able to
illustrate petroleum
products meeting specs.
Example: gasoline
meeting octane, diesel
cetane.
Flash Assay or
Inspection
Assays
$2,500 –
$5,000
Up to 2
Quarts
5 to 7 Business
Days
“Whole crude” properties
using GC data with NO
Physical distillation work.
Excellent cost-benefit tool
to obtain the petroleum
product volume in
weight%. Quick turnaround on lab results
featured as a snap shot.
BVI-”Quick
Yield” Assay
$2,500 –
$5,000
30 mls or
more
3 to 5 Business
Days
Extremely accurate for
HTSD (high temp. sim.
distillation) with LIGHT
END (C10 –C10) merged
data compared to TBP..
Preliminary evaluation of
crude prior to purchase.
Used mainly for
preliminary evaluation of
crude oils prior to
purchase. Quick lab
turnaround for demurrage
savings on marine
movements.
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Mirroring the Refinery
Laboratory
Atmospheric Crude Oil
Distillation Unit,
ASTM D2892
TBP 15 / 5 Tower
•IBP
Refinery gases/ LPG’s
15°F– 59°F
Lt. Naphtha
59°F– 175°F
IBP
Hvy Naphtha,
Gasoline
to
175°F– 375°F
752o F
(or
400o
Kerosene
C)
375°F– 530°F
Diesel Oil
Laboratory
Vacuum
Distillation Unit
530°F– 650°F
o
ASTM D5236 •700 F Range
Vacuum Potstill
752o F
to
Fuel Oil
650°F–1050°F
Residue
•1050o
F
1050°F Plus
1050o F
(or 565o C)
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What an assay tells us
100%
90%
80%
70%
60%
50%
Gases
Naphtha
40%
Kerosene
30%
Distillates
Heavy products
20%
10%
0%
Eagleford
40.1°
0.13%S
WTI
39.1°
0.35%S
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Brent
37.5°
0.40%S
Bakken
44.1°
0.05%S
Arab HVY
27.9°
2.8%S
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WCS
20.6°
3.34%
11
QUICK Yield Crude Quality Monitoring
800
Comparison of TBP, HTSD and Merged GC Light Ends Data
Merged ASTM D7169 & D6730 Modified
700
600
Temp (deg C)
500
400
Merged GC Data
TBP
HTSD
300
200
100
0
0
10
20
30
40
50
60
70
80
90
100
-100
Wt.%
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Who Uses the Crude Oil Assay Data
Services Along Supply Chain
Exploration & Production
Gathering & Processing
Primary Logistics
Refining / Plants
•Engineering Companies
•Government (SPR)
•Start – Up Companies, Lawyers, Banks, Investors
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Data Integrity and Verification
•
•
•
Laboratory Quality Programs – ASTM, Customer Audits
Correlation Testing Programs
Crude Data Management Software
• Haverly HCAM
• Spiral Crude Suite
•
•
Pipeline Allocation & Quality Bank Programs
Good Sample Handling Practices
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In Summary
•
•
•
•
Crude Oil Quality is more than Gravity & Sulfur
Partner with reliable commercial 3rd party laboratory & or consultant
Share your goals and expectations…
Gain a good “Cost-Benefit” outcome
• A 500 M/B ship is valued at $50 million(economics of $0.50/bbl. could
represent $250K)
•
Engage in Industry Organizations/Events to network
(COQA, CCQTA, API, The Carl McCain Foundation, etc.)
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References
Contact Details:
Bruce Carlile, Business Development – Crudes Oil & Shale Play Operations
Inspectorate America Corporation
12000 Aerospace Avenue, Suite 200
Houston, TX 77034
Office Ph: (713) 944-2000
Email:
Email: [email protected]
Website: www.bureauveritas.com
[email protected]
References:
COQA.org “Crude Oil Quality Association”
CCQTA.com “Canadian Crude Quality Technical Association”
Haverly.com and Spiral.com
Crude Quality Monitor.com (Owner – Bill Lywood)
ASTM Booklet – “Crude Oil Quality & Sampling” by Harry Giles (former, Director of the COQA)
The Carl McCain Foundation
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16
THE CRUDE OIL TRADER
The official title given crude-oil traders vary from company to company and some have pretty fancy
designations. They are quite commonly referred to as “buyers” even though many of them are engaged
primarily in selling. But they all call themselves “crude-oil men” and are proud of the designation.
It takes a special type of guy to be a crude-oil man. In the first place he has to be an extrovert, has to like
people and like to do favors and ask favors. His success depends on knowing everybody in the business and
getting along with them all.
He has to have an elephant like memory for pipe line locations and tariff rates, for refinery locations and their
crude requirements, for posted prices and specifications, and for figures of all kinds.
He has to have a built-in rapid calculator so he can figure the profit or loss on a deal without referring it to the
Economic Department for analysis.
He has to have a trigger-quick ability to make decisions. Things move fast in the crude-oil business, and more
often than not an attractive-looking deal won’t wait for consultation with the Refining Department or approval by
the Board of Directors.
Above all he has to be a straight shooter. His word must be as good as his bond. Deals are made orally and
informally, often over the telephone, and may be in effect for weeks before the lawyers complete the formal
contracts.
But a crude-oil man must not be a “sharp-trader” in the derogatory sense of taking advantage of the
other fellow. All of them have to give as many favors as they ask. They always need each others help.
Whether crude is in short supply or long.
Taken from “The Oil & Gas Journal”
January 26, 1962
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