CATALYTIC OXIDATIVE COUPLING OF METHANE TO ETHYLENE. PROCESS-FLOW UTILITY SCHEME V. A. Menshikov, P. S. Chekriy and O. B. Shamrai, Moscow, Russia. Abstract. The oxidative coupling methane to ethylene process faced problems of kinetic restrictions on selec- tivity and by-product utilization. Combining the oxidative methane coupling process with conventional ethane pyrolysis and a joint gas separation system looks like the most economically efficient. Methane conversion according to the energy and process flow scheme as designed by the authors is performed in a cascade of reactors with intermediate cooling and high-pressure steam generation, CH,/O, ratio being approx. 3, temperature ranging 650-900 dg. C. At 30-35% methane conversions, selectivity to C, hydrocarbons accounted for 55-57%. A gas-separation system, incorporating absorption and low-temperature units ensures use of CO and a portion of unreacted methane by way of fuel for process furnaces, with recovery of product ethylene and recycle ethane sent to thermal pyrolysis. Consideration is given to comparative technoeconomic data of conventional pyrolysis process with the energy and process flow scheme for catalytic oxidative coupling of methane under development. In the last five years special attention of researchers has been paid to the process of catalytic oxidative coupling of methane. A large number of various catalysts have been examined'. However, even the best investigated samples did not provide the yield of C,-hydrocarbons in excess of 20-22%2*3, if methane-oxygen mixture was not diluted by plenty of inert gas4. Process selectivity drops with increase of methane conversion which is connected with the greater reactivity of ethane in comparison with methane. Running the process at low conversions of methane does not enable the gaseous products to be recovered in a form suitable for fractionation. When methane conversion increases, process selectivity to C,-hydrocarbons drops at the expense of carbon oxides build-up. Simultaneously there is a growth of heat liberation in the reactor unit. The reaction heat recuperation and efficient use of by-products allows an improvement in the techno-economical indices of the process and enables the production of ethylene from natural gas to be competitive with the pro- duction of ethylene by ethane pyrolysis. For the development and assessment of the process flow scheme use was made of experimental data obtained on 1% La,O,/MgO catalyst. At CH,/O, ratio being equal to 3 and maximum cata- lyst bed temperature ranged 860-880 "C the methane conversion amounted to 30-35% and selectivity to C,-hydrocarbons was 55-57% '. For technological calculations the yield of C,-hydrocarbons was adopted equal to 19% out of which 213 is ethylene. The reactor unit is arranged by way of a cascade of adiabatic reactors with intermediate cooling of the stream down to 650°C with generation of high- pressure steam. After cooling and compression the reactio
ENVIRONMENTALLY FRIENDLY MOTOR FUELS IN HUNGARY Béla Sebestyén, Vice President, MOL Hungarian Oil and Gas Co., Hungary; Árpád Deák, Manager, MOL Hungarian Oil and Gas Co., Hungary Abstract. The Hungarian petroleum industry has been making continuous efforts and carried out significant investments to protect the environment. Sophisticated transport fuel upgrading technologies have been imple- mented in the last decade. An ongoing investment programme completed in 1993 and comprised of FCC, HF-Alkylation, MTBE, CCR, MHC, HDW processes have allowed the supply of products that meet EC`s standards and also increasing proportions of unleaded gasoline. The investment cost of these projects was approximately U.S.$300 million. The quality requirements for motor gasolines in some respects such as sulphur and benzene content exceeds West European norms. Hungary is taking steps to ensure that product quality standards are maintained. We are presently introducing an extensive quality control system to ensure that the consumer receives consistent product quality. The industry is ready to supply low sulphur (0.05%) and city diesel oil (max. 0.01% sulphur and 5% aromatics) in the near future. Further ideas for motor fuel quality improvements and the potential growth of alternative fuels are also discussed. Today, environmentally friendly fuels are of fundamental importance in the Hungarian market and a contin- uous supply of these fuels has been secured. 1. OVERVIEW OF THE HUNGARIAN DOWNSTREAM SECTOR Since the transition period from a centrally planned economy to a market economy, the Hun- garian oil industry has undergone a period of signifi- cant restructuring. In 1991 the central oil and gas trust, OKGT, was broken up and reconstituted into an integrated, national oil and gas shareholding company, MOL, with separate upstream and down- stream divisions. At the same time fifteen member enterprises, that were considered to be involved in non-core activities became independent (e.g. regional gas distribution companies). Today MOL is almost completely state owned, however privatisation plans are in progress. Accord- ing to the current state policy on the privatisation of energy industries of strategic importance, the state intends to retain a minimum share of 51% in the oil and gas industry and furthermore local government is expected to play an increasingly important role in ownership in the future. It is worth noting however, that the monopoly of the state owned company has already ended in many areas. For example the government's progressive energy policy removed formal control over pet- roleum product prices and has also removed duties on product imports. The current liberalised prices reflect international values. The free market environ- ment has since attracted foreign oil companies and many small entrepreneurs into the retail business and consequently the Hungarian market is highly com- petitive. In 1989 practically all (some 650) fil
HEAVY OIL PROCESSING AND TECHNOLOGY OPTIONS Graham Phillips, Orhan Genis, UOP, Guildford, England, U.K. ; and Elizabeth L. Holland, Edward J. Houde and Daniel A. Kauff, UOP, Des Plaines, Illinois, U.S.A. Abstract. Decreasing supplies of high-quality crudes in combination with declining worldwide demand for fuel oil, increasing demand for high-quality distillates, and refinery-specific strategic and environmental concerns have renewed interest in converting the residual portion of the crude barrel. This paper reviews some of the more common residue conversion options. The impact of each option is evaluated by comparing differences in overall refinery yields when processing Arabian Heavy crude. BASE SCHEME A typical hydroskimming refinery configuration (Fig. 1) was chosen as the basis for comparison. Five additional refinery configurations employing various upgrading technologies were then evaluated by com- paring their overall refinery yields to the base hydro- skimming refinery. Each configuration was required to produce products meeting the specifications sum- marized in Table I. Overall product yields from the hydroskimming refinery are summarized in Figs 2 and 3. When pro- cessing an Arabian Heavy crude, the hydroskimming refinery produced approximately 70% fuel oil, which because of the high Sulfur content of the atmospheric residue, contained approximately 20 vol-% hydro- treated distillate. The total liquid yield of transporta- tion fuels (gasoline plus distillates) represented approximately 27 vol-% of the incoming crude. UPGRADING O PTIONS Five alternative cases, each employing com- mercially proven technology, were then compared to the base hydroskimming refinery: - Case 1 : Vacuum distillation (VDU), FCC - Case 2: VDU, FCC, coker - Case 3 : VDU, Hydrocracker - Case 4: Solvent extraction and hydrocracker - Case 5: Residue hydrotreatment and RCC The integration of various upgrading technologies can offset some of the economic deficiencies associ- ated with the individual processes. Cases 4 and 5 discuss the benefits of integrating commercially proven carbon-rejection and hydrogen-addition pro- cesses. Information on each of the case studies is sum- marized in Table II and in Figs 2 and 3. Case 1 : VDU, FCC In addition to the process units required for the hydroskimming refinery, this case included a VDU, an FCC, and a VGO hydrotreater. Light ends were upgraded by alkylation and catalytic condensation. Fuel oil was produced by blending hydrotreated dis- tillate and FCC clarified oil with vacuum residue. Compared with the base scheme, the addition of the FCC reduced the yield of refinery fuel oil by approximately 34% and doubled the yield of trans- portation fuel to 54 vol-% of crude (Figs 2 and 3). Case 2: VDU, FCC, coker This case added a vacuum residue coker to the flow scheme described in Case 1. Coker gas oil was combined with straight-run vacuum gas oil, hydro- treated, and then processed in the FCC. Adding the coker r
AUSTRALIA CREATES MULTI-DISCIPLINARY RESEARCH CAPACITY Adrian Williams, Director, Australian Petroleum Cooperative Research Centre, PO Box 3000, Glen Waverley, Vic. 3150, Australia Abstract. Australia has recently created a major multi-disciplinary research capacity to support its upstream petroleum industry. The Australian Petroleum Cooperative Research Centre (APCRC) was created in 1991/2 with a budget of U.S.$6 million and has grown in 1993/4 to more than 100 research staff including post graduate students with a budget of U.S.$7.27 million. The catalyst was provided by a Government cooperative research centres scheme designed to increase the relationship between industry, universities and major public research institutions such as CSIRO and which provides U.S.$1.9 million per annum to the centre. The APCRC joint venture comprises CSIROs Division of Petroleum Resources and three universities. A feature is that 100% of the research activities of each participant are committed to the APCRC. There is significant industry involvement on the Management Committee, in the process to fix priorities and allocate resources and in the conduct of the research. The opportunity provided by the Government scheme has encouraged participants to step outside their traditional frameworks and to think creatively in developing a new arrangement. In the case of the APCRC, several disciplines have been brought together into research programs which emphasize major issues rather than disciplines. A major achievement has been the establishment of a coherent group with a clear strategy address- ing major industry issues. 1.
Companies and research institutions around the world are grappling with the challenge to develop and package new technology in a way which meets the needs of the end-user (Millheim, 1993). They are also grappling with the problems of accessing the required breadth of disciplinary skills, the need for flexibility and the financial resources imposed by the current economic climate. At the same time, there is a considerable research resource, especially in universities and other govern- ment institutions, which is also feeling the impact of the current economic climate and is somewhat frag- mented but is increasingly conscious and willing to make a contribution to the industry. This paper describes an approach to the above issues which has been tailored to suit the industry and public institution environment operating today in Australia. 2. BACKGROUND 2.1. Industry Australia's upstream petroleum industry comprises approximately 75 exploration and production com- panies and 85 service companies. Between them they produce all of Australia's gas needs and A$1051 m worth of gas exports, and 70% of Australia's oil needs. The petroleum industry is thus an important component of the Australian economy. Unlike the major petroleum companies in Europe and North America, Australian operating companies do not have si
POTENTIAL OF HORIZONTAL WELLS WITH LATERAL ARMS FOR PRODUCING HEAVY OIL RESERVOIRS WITH BOTTOM AQUIFER Ph. Corlay and E. Blouin, Institut Français, du Pétrole, France. Abstract. The economical development of heavy oil reservoirs with bottom active aquifers is a challenge to petroleum industry. Such oil reserves are huge but conventional production methods generally result in exces- sive water production and low recovery. For large mobility contrasts, even horizontal drilling has limited success to curtail water production since excessive drain lengths are required to adequately lower the well pressure drawdown and to keep commercial production rates. An efficient alternative is to use multidrain wells where several branches are drilled from the same horizontal well. Beside increasing the surface of contact between the well and the formation, the system reduces the number of wells and pads required for a field development and optimizes the drainage architecture of the reservoir. Horizontal wells with lateral arms have also a large potential for thermal processes. Steam flooding between two conventional horizontal wells induces detrimental thermal losses and a by-pass in the underneath aquifer. By reducing the drilling cost, the lateral arm technology can provide a much smaller spacing limiting steam diversion in the water zone. As a result, higher oil recovery and oil steam ratio are obtained. An optimization of the injection/production system using two horizontal main drains with several lateral arms is also discussed. The effects of fluid mobilities, spacing between lateral arms and production rates are investigated. Comparison with a parallel conventional horizontal well development is provided. NATURAL DEPLETION The economical development of heavy oil reservoirs with bottom active aquifers is a challenge to the petroleum industry. Such oil reserves are huge but conventional production methods (vertical wells) generally result in excessive water production and low recovery. For large oil viscosities even horizontal drilling has a limited success to curtail water pro- duction since excessive drain lengths are required in order to lower adequately the well pressure draw- down and to keep commercial production rates. An efficient alternative is to use multidrain wells where several branches are drilled from the same horizontal well. Beside increasing the surface of contact with the formation, the system reduces the number of wells and pads required for a field devel- opment and optimizes the drainage architecture of the reservoir. The interest of the method was studied in the case of typical Canadian reservoirs. Oil viscosity varies between 600 and 3000 cp. The oil layer is 14 m thick and is underlain by a very active aquifer of some 21 m. Formation sandstones are mostly unconsoli- dated with a permeability of 3000 md. The drainage architecture was drilled in a horizontal plane located 13 m above the water-oil contact. The length of the ma
OIL SUPPLY OUTLOOK-DECADES OF CHALLENGE FOR OIL PRODUCERS Dr. Subroto, Secretary General, Organization of the Petroleum Exporting Countries (OPEC) Excellencies, Mr. President, Ladies and Gentlemen.
As the Secretary General of the Organisation of the Petroleum Exporting Countries, I am very pleased to speak to you today at this 14th World Petroleum Congress of high level officials of the governments and industrial sectors related to oil. It was less than three years ago that I concluded my address to the 13th World Petroleum Congress which met at Buenos Aires with a note about the need for expanding the co-operation in the oil industry and between the developing and industrial- ised countries. At the Organisation of the Petroleum Exporting Countries, we believe now more than ever in the need for such co-operation. This is one of the key areas about which our Member Countries agree unanimously. Let me please go over my points of discussion by a brief review of the background : BACKGROUND World oil and energy demand expanded strongly during the early '70s when the oil price was kept arti- ficially at a very low level by the international oil companies as in the '60s. Due to the unreasonably low prices at that time, our Member Countries had to meet an ever-increasing demand for crude oil at a flat price, while the price of industrial goods exported by the industrialised countries grew strongly for an extended period. OPEC found itself obliged in 1973 to adjust the price of oil. Many consumers, however, did not appear to see things quite the way OPEC did. While OPEC maintained that the trend of oil supply established just before the event could not have been continued at any reasonable cost, the con- sumers preferred to neglect the true grounds for such a correction. The 1973/74 oil price adjustments that were so inevitable were branded unfairly if not quite wrongly a shock to the world oil and economy. Naturally, the price adjustment affected all the energy consumers in the industrialised countries as well as the developing countries. OPEC believed that it had to do all it could to shield the oil-importing developing coun- tries from the full effects of oil price rise. Therefore, OPEC established its own 'development fund' for the sake of developing countries. This fund was later given its own legal status as an inter-governmental organisation, separate from OPEC, and was named 'The OPEC Fund for International Development'. I am glad to highlight here that, through the available aid-channels, including the OPEC Fund, the OPEC Countries have by now used a total of around $98 bn, equivalent to a full one percentage point of their GDP, for assistance to the developing world at large since 1973. Soon after the early price adjustments, the supply of newly developed non-OPEC oil and the tall orders for nuclear power stations got under way. Although the energy content of finished goods wa
NEW APPROACHES TO HEAVY OIL RESIDUES UPGRADING Prof. V. V. Lunin, Chemistry Department, MSU, Lenin Hills, Moscow 119899 Russia; Prof. S. N. Khadjiev, Institute of Petrochemistry, Moscow, Russia. Abstract. Processing of oil vacuum distillation residues requires the solution of a number of well-known but extremely complex chemical and technical problems. Development of new processes for effective processing of vacuum distillation residues of different oils is being conducted. Catalysts-donors of activated hydrogen due to their ability to absorb hydrogen in great quantities in a bulk are used in one of them. Hydrides of intermetallic compounds of transition metals refer to these catalysts in saturation reactions of polycyclic aromatic nuclei by hydrogen, hydrochemolysis of C-C, C-N and C-O bonds. The catalysts are not actually poisoned by metals from the raw materials. High efficiency is shown by catalysts based on the molybdenum salts soluble in water that are mixed with raw material in a specific way. As a result a super-dispersed catalytic system able to operate under low pressures (7.0-10.0 MPa) to realize an efficient C-O bond rupture in heavy petroleum residue and even in coal is formed. New opportunities can be obtained by a new thermoprocess based on the technology of bond rupture of C-C, C-H and C-S in the presence of active particles formed during combustion of light hydrocarbons in a flow of oxygen. Processing of oil vacuum distillation residues requires the solution of a number of well-known but extremely complex chemical and technical problems. Development of new processes for effective pro- cessing of vacuum distillation residues of different oils is being conducted. Catalysts-donors of activated hydrogen due to their ability to absorb hydrogen in great quantities in bulk are used in one of them. Hydrides of inter- metallic compounds of transition metals refer to these catalysts in saturation reactions of polycyclic aromatic nuclei by hydrogen, hydrogenolysis of C-C, C-N and C-O bonds. Catalysts are not actually poisoned by metals from raw materials. Pro- cessing of West Siberian oil distillation residues for 100 hours of continuous operation at 673-773 OK, 1- 5 MPa, 0.5 h-l, the catalyst provided the demetal- lization of raw materials of 80-90 wt%, denitrogenation of 70-80 wt% and desulfurization of High efficiency is shown by catalysts based on molybdenum salts soluble in water mixed with raw material in a specific way. As a result a super- 40-60 wt%. dispersed catalytic system able under low pressures (7.0-10.0 MPa) to realize an efficient C-C bond rupture in heavy petroleum residues and even in coal is formed. Experiments on the pilot plant with a capacity of lo00 tons of raw oil per year while pro- cessing of oil vacuum distillation residues (Venezuela) gave the following results : the conversion in hydro- carbons, boiling lower than 793"K, is 90-95 wt%, demetallization-90-95 wt%, desulfurization40- 60 wt% (723-773 OK,
REVIEW AND ASSESSMENT OF STEAM ASSISTED GRAVITY DRAINAGE (SAGD) APPLICATIONS IN CANADA William K. Good, c/o Alberta Oil Sands Technology and Research Authority, 18th Floor, 700-4th Avenue S.W., Calgary, Alberta, T2P 354; John D. Scott, c/o Alberta Oil Sands Technology and Research Authority, 18th Floor, 700-4th Avenue S. W., Calgary, Alberta, T2P 354; Richard W. Luhning, c/o Alberta Oil Sands Technology and Research Authority, 18th Floor, 700-4th Avenue S. W., Calgary, Alberta, T2P 354 Abstract. Western Canada's Athabasca, Peace River, Cold Lake and heavy oil sands deposits contain an esti- mated 276 billion m3 of bitumen and heavy oil. The majority of this resource is not economically recoverable by conventional methods. A unique in situ recovery method, steam assisted gravity drainage (SAGD) using twin horizontal wells, is being developed and tested at the pre-commercial proto-type levels of 325 m3 (2000 barrels) per day at the AOSTRA Underground Test Facilities in the Athabasca Oil Sands and 190 m3 (1200 barrels) per day at the Shell Peace River Horizontal Well Demonstration Project in the Peace River Oil Sands. The most advanced of the two tests is in Athabasca where successful performance to date indicates that an additional 64 billion m3 (400 billion barrels) of bitumen may be recovered by application of the SAGD process in that deposit. The performance of the SAGD process tests and numerical models of the process developed and matched to the field performance show that the process is very efficient and robust. In addition to reviewing the foregoing field tests, sensitivities of the process performance to various reservoir and fluid properties are presented. 1.
Western Canada's heavy oil and bitumen in-place resource is quite extensive totalling approximately 276 billion m3. Cumulative production from two oil sands mining extraction and upgrading plants in the Athabasca deposit, commercial in situ thermal pro- jects in the Cold Lake Clearwater and Peace River Deposits as well as numerous primary and thermal projects in the lighter bitumen and heavy oil accu- mulations totalled 0.490 billion m3 to the end of 1992 or only 0.18% of the total in place resource. Total 1992 production of bitumen and heavy oil was in the order of 41 million m3 or 112000 m3 per day. Unfortunately the majority of the resource is bitumen and has been very costly to develop. It has a high viscosity at reservoir conditions and can only be recovered by expensive mining and extraction pro- cesses or in situ thermal processes. In situ thermal processes are used where over burden thickness pre- cludes economic mining or where the economics favor the in situ approach. The bitumen then requires dilution for pipeline transportation to markets. In 1974, when AOSTRA was founded, surface mining operations in the Athabasca oil sands deposit were at the commercial stage. The mining technology however was suitable for application to
DISCUSSION ASPECTS OF DETAILED REGIONAL EXPLORATION Chairman: Dr. A. MIKHALTSEV - not discovered or not explored targets in the mature areas are, as a rule, relatively small in size, structurally and stratigraphically complicated and located in greater depths; - complicated overburden inputs additional geology and geophysical noise in primary data; - in order to achieve exploration success in the mature areas there is a severe need to study not only geometrical, but also physical and material characteristics of geological space, to estimate and interpolate reservoir capacity parameters in 3D space; - cost of exploration and exploration risk in these areas increase in geometrical progression with the increasing depth and the decreasing size of the hydrocarbon targets; - dense exploration nets lead to the increased prob- ability of environmental damage. Forum-2 Session papers demonstrate and discuss the results of implementation of up-to-date techno- logical and management approaches to meet the above mentioned challenges. Most of these approaches are based on fruitful integration of differ- ent disciplines and exploration technologies, on data interpretation utilizing the advanced data processing systems, on more efficient use of human resources by means of multidisciplinary teams and interactive mode of integrated interpretation on powerful work stations. The first paper presented by Prof. E. KOZLOV (Russia) was devoted to economic, environment In his opening remarks the Chairman pointed out saving 3D seismic technology and integrated inter- that the Forum-2 Session dealt with the geological pretation of 3D seismic and well logging data aimed exploration in the mature areas where explorational to optimize the drilling network on the gas- problems seemed to become challenging with time. condensate field with severe lateral variations of reservoir parameters. lenges. The main of them are: Dr. E. MOVSHOVITCH was concerned to know about the dependence of 3D economic seismic tech- nology on a high signal to noise ratio. The answer was that theoretical and practical results pointed out on the applicability of the technology in the majority of geological provinces of, at least, Russia. Dr. A. Y. AL-DULAIJAN was interested to know more details about wavelet estimation and fracture zone pro- duction techniques. Dr KOZLOV explained that there was nothing fundamentally new in the wavelet estimation technique. It is quite standard near the boreholes where impulsive seismograms derived from the acoustic logs are available. The wavelet estimate obtained here is parameterized and at t
DISCUSSION RUSSIA: OIL RESOURCES AND LEGISLATION Chairman : Y. RAFIE, Saudi Aramco Two authors of the presentation Professors N. A. KRYLOV and A. S. TISHCHENKO took part in the discussion after presentation by Prof. KRYLOV. The discussion was initiated by the Session chair- man. Mr. RAFIE pointed out the importance of legal and fiscal reforms for Russian oil industry and out- lined the importance of one of the main presen- tation's messages that current decline in oil production in Russia is not due to the hydrocarbon reserves depletion. The questions from the floor were asked by repre- sentatives from Saudi Aramco, European Petroleum Industry Association, U.S. independenîs and journal- ists. Discussion covered the following subjects: 1. Oil production forecast in Russia. Annual oil production in Russia is expected to be stabilised at the level of 330-340 mln t in 1994- 1995, with growth tendency after 1995 to reach according to the plan 450 mln t in the year 2000. Authors believe that realistic level of oil pro- duction in 2000 may be in the range of 380- 400 mln t. 2. Definition of recoverable and Enhanced Oil Recovery (EOR) reserves in Russia. Definition of recoverable reserves in Russia is based on the well detailed classification of reserves and various economic assumptions based on market economy criteria. The new Oil and Gas Law has got approval from seven committees in the Russian Parliament (Duma) and will be submitted for the Parliament's hearing in the beginning of June 1994. The Draft 3. Development of Petroleum Legislation in Russia. of the Oil and Gas Law was already approved by all oil producing regions in Russia. 4. Political instability, uncertain and changing taxa- tion in Russia prevent active involvement of foreign oil companies in the Petroleum sector (negative experience with `White Nights' Joint Venture). According to Prof. TISHCHENKO 49 Joint Ven- tures with foreign companies are established and operate today in the Russian oil industry. Export of oil by these foreign companies during recent years amounted to 2.5 billion dollars equivalent, while assumed investment in Russia did not exceed 500 million dollars. Among them there are foreign companies which are really interested in doing business in Russia with strong long term commitments and desire to expand their invest- ments. Current Presidential Decree on taxation is reliev- ing fiscal conditions in the Petroleum Sector and it is now the Ministry of Finance which should properly implement it in practice. 5. Russian attitude to the European Energy Charter. Russia signed documents showing its intention to join the European Energy Charter. But before it happens, principles of the Charter should be made more specific and detailed. Today, according to Prof. TISHCHENKO, the Charter looks very schematic. 6. Technological achievement in the Russian pet- roleum sector which are of interest for the West. Professor KRYLOV being Director of