Typically olefins production via steam cracking is based on fossil feedstocks like ethane, LPG or naphtha for instance. Renewable diesel is chemically equivalent to conventional petroleum diesel but instead of being fossil-based, it’s derived from biomass such as vegetable oil or animal fat. Renewable diesel is produced by hydrodeoxygenation, a hydrotreating technology that converts the triglyceride molecules of the oils and other oxygenates into paraffinic hydrocarbons. Consequently, this renewable diesel can serve as a feedstock for a steam cracker by replacing fossil-based feedstock.
SABIC as one of the major olefins producers worldwide has a unique position in Europe to be able to crack such renewable feedstocks in its assets. Thus SABIC is the first petrochemical company that has already used second generation renewable feedstocks in their crackers to produce certified renewable polyolefins in its plants in Geleen (The Netherlands) and Gelsenkirchen (Germany).
The second generation renewable feedstock doesn’t compete with the food chain, and there is no agricultural land required to grow this renewable feedstock.
The produced polymers (Polyethylene and Polypropylene) have the same performance as those produced with fossil fuels. However, the bio-based polymers are of special interest to customers for marketing reasons. Therefore, the renewable polyolefins are certified under the ISCC Plus certification scheme, which involves strict traceability and requires a chain of custody based on a mass balance system. An internal Life Cycle Assessment confirmed the validity of this concept.
The presentation will give an overview of commercial and technical aspects when considering renewable feedstocks processing and the results of the Life Cycle Assessment.
Changing consumer behaviour is having a profound impact on the marketing organisations of both IOCs and NOCs. Consumers are no longer swayed by premium fuels and lubricants, rather today’s consumer wants an experience or service beyond the physical product. The industry has been slow to respond and we are now seeing a rapid influx of start-ups and new entrants challenging the status quo with new offers such as remote fuelling and new channels to market. This abstract will draw on research by Accenture Strategy Energy and Accenture Fuels Retail Group to define what it will take to win in this rapidly changing environment.
The fuel retail industry is at the tipping point of disruptive innovation. Technology, business and political trends are about to change long-established norms about road transportation, fuel retail’s core market. This disruption will raise fundamental questions about what need fuel retailers are trying to address, and who their customers will ultimately be. The industry as a whole has underestimated the speed at which this change will occur and the impact it will have. Fuel retailers will need to understand today’s major road transportation trends, as well as the potential impact these trends will have on their businesses. This paper describes what is driving the oncoming disruption, what the future of the industry could look like, and what fuel retailers can do to respond now and in the future.
Industry tipping point
There are clear signs that fuel retail is on the verge of disruption. But what does this actually mean? Disruption is not just a fashionable buzzword; it refers to very specific market dynamics. Harvard University’s Clayton Christensen states disruption exists when an innovation addresses customer needs in a simpler, more convenient and cheaper way than an existing product. As a result, customers abandon incumbent products in favor of the new.1
The primary purpose of road transportation is to help customers move goods or people from point A to point B. For the last 100 years or so, meeting this need has involved two critical products: the motor vehicle and petroleum. Thanks to automation, electrification, the sharing economy, socio-economic and regulatory change, the dominance of these products may be over. New models of transport will emerge that better meet the needs of customers, without requiring that they own vehicles or purchase fuel.
The shale revolution has reduced the US oil dependency by 2.This influx caused a collapse of prices with a significant impact on development activities. Yet, shale production has proved to be resilient with a slow and delayed decline compared to the dramatic reduction in drilling and fracturing. Using an in-house model, Total inferred that shale oil resilience relies on : (1) large portfolio of wells (2) improvement in operational efficiency (3) increase in reserves per well boosted by completion technology and identification of sweet spots. Maintaining a production plateau requires a "critical activity" that declines with the number of wells and technology improvements. Consequently, the critical activity at the end of a development can be 5 to 10 times less than during the ramp-up phase. The model was used to assess the resilience of two major American oil plays: Bakken and Eagle Ford. Using the past well schedule, the actual production history has been matched by calculating the best decline curve per well. The economic resilience of the plays has then been assessed by extending the production period over 5 years (2015-2020) in a durable weak oil price environment and using three different strategies. The model highlights that when oil prices are high, the resources need to be developed at a fast pace to feed a well portfolio paid by a fast return on investment. In case of decrease in prices, the portfolio will rest on a declining or a moderate development strategy to maintain profits. Thanks to the flexibility of the means (rapid mobilization and demobilization of rigs), the development can be resumed as soon as prices recover. However, a systematic "stop and go" strategy can be damaging to human resources and loss of skills. Consequently, reducing breakeven prices through technology remains the best guarantee to perpetuate the economic efficiency.
The main objective of this research is initially to investigate supply chain complexity and to address current literature arguing issues around it in general supply chain context and particularly in the oil industry. In addition, applicability of suggestions that have been made through supply chain literature to the oil industry will be discussed. Therefore adopting inductive and exploratory research, three case studies from multinational focal oil companies have been conducted in order to better discuss the function of agility within the oil sector.
Considering volatilities in the oil industry, simplification of supply chain and quick response to the demand become essential. Moreover, recent emergent technologies such as additive manufacturing can facilitate supply chain complexity and thus may drive supply chain managers to reconfigure their supply chain networks. Adoption of these technologies to the oil question can be added as another objective that has been aimed in this research.
Ultimately recent discussions toward supply chain complexity and agility have seen little attention in the oil sector. Consequently this research aims to contribute to the mentioned gaps and provide suggestions for both oil industry and further research.
Maximization of transportation fuels while processing heavy crude oils and minimizing products with negative cracks are ways for refiners to improve margins and profitability. In the process, if one can also expand capacity, improve quality of motor fuels and integrate with petrochemicals to manage risks, then such a project would transform the refinery into an integrated and balanced enterprise. Further, in this dream project, the gas utility molecules required for refinery and petrochemicals are to be sourced from a third party supplier, thereby reducing overall capital cost, improving efficiency and tightly integrating the overall complex.
This paper outlines the objectives and considerations for selection of configuration of the USD 3.0 Billion “Integrated Refinery Expansion Project” (IREP) of Bharat Petroleum Corporation Limited (BPCL) in India at its 190,000 BPSD Kochi Refinery located in Kerala. The paper will also outline the USD 700 Million “Propylene Derivative Petrochemical Project”, (PDPP) which will utilize feedstock from IREP, and the “Build, Own, Operate” Contract for supply of gas utility molecules to IREP and PDPP.
The selected configuration for the 120,000 BPSD IREP, targets to improve the Nelson Complexity Factor of the refinery to more than 10, through building capability to process 100% heavy crude oils, upgradation of bottom of the barrel, building flexibility to maximize either Gasoline or Gasoil based on demand, and production of Propylene for manufacture of three niche import-substitutes chemicals. A well-designed “over the fence supply” contract for gas utility molecules ensures that varying demands from IREP and PDPP for gas utilities are simultaneously met.
The refinery is expected to improve its margins by 60%, on completion of IREP during 2016-17. With the commissioning of PDPP by 2018, margins from the refinery will further increase by another 15%, and opportunities for production of value added end-products open up in southern India based on petrochemicals produced from PDPP.
Moyano, Juan Miguel (ARPEL) | Sanchez Thorin, Ana Cristina (Equion) | Grosse, Francisco (Tecpetrol) | Milazzo, Pietro (Weatherford) | Wharton, Stephen (Tecpetrol) | DHuteau, Emmanuel (YPF) | Nardone, Gonzalo Lopez (YPF)
Between 2005 and 2015, the Latin American and Caribbean region experienced a growth of its Gross Domestic Product of approximately 3.5% per year. This economic growth was accompanied by an annual increase of 2.2% and 4% consumption in oil and natural gas respectively. Unconventional hydrocarbons offer a historic opportunity to supply to the region the energy and resources required to continue along this continually growing path. ARPEL and its member companies published a document developed by a multidisciplinary group of oil and gas companies with operations in Latin America. The document proposes alternatives to make unconventional oil and gas projects technically and economically viable under a sustainability framework, addressing key issues related to supply chain management, social and environmental management and operational guidelines. Also, the document makes regulatory proposals to foster the sustainable development of unconventional resources, taking into consideration their particularities concerning the investments required, the production profile, logistics and technology applied.
The availability of ethane and propane at a low cost from shale gas is having a great impact on the chemicals industry in the United States. Ethylene production capacity in the US is rapidly increasing with the addition of new steam crackers. Similarly, on-purpose propylene production by propane dehydrogenation is increasing. Apart from these well-established routes to produce ethylene and propylene, selective oxidation provides the option of a direct route to convert ethane to acetic acid and propane to acrylic acid and acrylonitrile. The potential benefits of the selective oxidation route are: - Direct one-step route with lower capital costs - Smaller scale plants can be set up with investments an order of magnitude lower than a cracker.
There is broad consensus within the industry that the market for LNG will rebalance by the mid-2020s. There is visibility on the supply side of the balance. The demand outlook is less certain. The IEA lowered its projections for gas demand growth to 1.5%pa to 2021. However, some projections suggest LNG demand could double over the next 20 years. Does this uncertainty herald the end of the LNG megaproject? Given the uncertainties surrounding demand growth and continuing challenges around project delivery performance, the traditional project development model looks to be under threat. Without increased confidence over future demand, or a significant reduction in planned project costs, attracting financing for new LNG projects will be difficult and alternative solutions may be required.
Sustainable management of the petroleum industry depends on closing gaps in HSE performance, not only through technology, but also through major shifts in cultural, organizational, and human performance paradigms. Changing the way we manage HSE and eradicate incidents from the workplace is critical to managing risk, improving public perception, and maintaining social license to operate.
For change of this magnitude to take hold, it needs to come from the top of the organization—the leaders who set expectations and direction, and whose behavior impacts the behavior of others. There must be operational ownership; it cannot be driven only by HSE. The paper demonstrates how one company accomplished significant HSE culture and organizational change internally through HSE leadership and is now working with its client companies to provide a blueprint for adapting change strategies in their organizations. Essential aspects are detailed:
Leadership, as evidenced through an effective combination of leading and lagging indicators, are used to validate that the culture is real and self-propagating. This is demonstrated in the case history as the foundation for lasting HSE culture change, driving a culture that is focused on predicting risk potential; diving deeper into human and organizational factors that contribute to incidents; and having an HSE management system that is robust enough to assure managing not only HSE risk, but all risk throughout the organization.
In hyper-competitive environment, organizations are seeking to become more operationally efficient and effective in achieving their objectives through increased productivity, higher quality, and more knowledge-driven work processes & practices. Shareholders are demanding the highest possible value for public money & National Oil Companies (NOCs), are looking to significantly reduce costs, improve decision making, finding innovative ways to grow. With the ever increasing complexity in oil sector, NOCs are finding ways to organize ideas and information so that knowledge can be managed and shared apart from serving as repository to future generations. Megatrends are transforming industry, and navigating the future is increasingly challenging in a more complex global market. The oil and gas industry is facing a difficult environment today, with historically low commodity prices, among other factors. For today’s knowledge-based work, NOC's need to learn from others’ experiences i.e. vicarious learning, to improve their efficiency, productivity, work smarter by reducing the cases of reinvention of wheel & collaborate.
This paper illustrates a case of implementation of various Knowledge Management (KM) strategies, in an Indian NOC namely HPCL, and its impact on company’s growth. In a hyper competitive scenario with ever rising pressures on time & cost in projects, the need for a ‘systematic templating’ of knowledge was recognized. This necessitated the introduction of Knowledge Management Centre (KMC). Projects & Pipelines Department (P&P) of HPCL introduced KMC that contributed significantly towards growth by adopting various strategies such as standardization, leveraging information system, competency enhancement, and improvements & innovations. These strategies gave savings in cost to the tune of 15M US$ in project apart from intangible benefits. HPCL has successfully created scalable foundation pillar of Knowledge, on which technology & people collaborate to provide sustainable competitive advantage.