840
465
755
425
320
485
40
985
935
80
10
30
20
100
10
25
120
75
10 75 15
375
35
165
330
1015
AFRICA
130
400 295
MIDDLE
EAST
110
20
120
FORMER USSR
90
50
200
150
170
215
EUROPE
170 280
730
OTHER ASIA
260 OCEANIA
CHINA
210
120
810
210
200
30
30
10
560
220
60
155
10
35
515
LATIN AMERICA
50
15
15
30
185
production
2002 crude and
LNG
refining
capacity (as of
1 January, 2003)
consumption
2002
crude and
petroleum
product flow
85
Canada
Latin
Europe Africa
America
China
Japan
Other
Asia
From
USA
Rest
of the
World
Total
4,9
15,9
10,7
0,5
1,1
4,0
5,2
1,0
43,3
95,5
0,2
0,5
0,2
0,1
0,2
96,7
195,4
6,4
8,4
23,2
0,6
0,9
0,9
7,6
4,7
248,1
57,0
24,6
3,5
10,0
3,6
0,7
5,4
2,3
107,1
9,8
7,4
214,6
0,5
8,1
1,2
10,4
2,5
254,5
Middle East
114,7
6,9
14,5
161,1
36,9
38,9
195,4
324,1
3,2
895,7
North Africa
13,6
5,1
6,2
87,3
4,0
0,3
3,6
5,7
125,8
West. Africa
55,5
1,0
9,9
35,2
2,7
9,5
3,8
38,3
155,9
Other Africa
6,4
1,5
0,8
8,7
Australasia
2,9
1,6
4,4
11,6
0,3
20,8
China
1,3
0,5
0,3
4,1
10,3
16,5
Japan
0,3
0,1
1,6
2,2
0,6
4,8
8,3
0,1
4,5
0,3
28,4
28,3
32,0
101,9
Unidentified
6,7
2,5
49,9
2,4
1,3
61,8
561,0
50,5
66,5
587,4
55,5
100,4
250,5
455,0
14,8
2151,6*
Canada
Latin America
Western Europe
CIS
Total
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
all goods
crude oil
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
petroleum products
1968
Gt/miles
trade.
1970
year
86
ENCYCLOPAEDIA OF HYDROCARBONS
Pipelines
Limited
Major
(geopolitical implications)
Planned, negotiable
Low
Very flexible
Not adaptable
100-400 kt/cargo
10 to 100 Mt/year
Implementation time
2-3 years
Security/Environment
Upgrading in progress
(impacts on image)
Very good
Investments
Operating Costs
Flexibility
Volumes handled
87
88
ENCYCLOPAEDIA OF HYDROCARBONS
89
insurance
administration
supply and stocks
repairs and maintenance
manpower
37%
13% 14%
25%
11%
400
Mediterranean-North-West Europe
25,000-30,000 dwt (products)
350
Worldscale
300
Arabian Gulf-East
70,000-100,000 dwt
250
200
150
100
50
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1992
1991
1990
1989
1988
1987
1986
1985
1993
year
90
ENCYCLOPAEDIA OF HYDROCARBONS
economic depreciation
margin
DNR ($/d)
(freight charge given by the spot market-minus variable costs )
margin.
Transport by pipeline
Overview
91
92
ENCYCLOPAEDIA OF HYDROCARBONS
93
15 /m
Pumping stations
1 to 5 M
Terminals
2 to 4 M
Operating costs (Op Ex)
94
ENCYCLOPAEDIA OF HYDROCARBONS
Rail
River
Pipeline
Moderate by unit,
high overall
High by unit
if sound
cost-effectiveness
is required
(push boat)
Mainly borne
by State
Toll duties
Personnel costs
Very high
Fairly high
Maintenance costs
Very high
Investment
Infrastructure costs
Return costs
Length of route
High for
Low (personnel
self-propelled barges, high in skills but low
low for push boats
in numbers)
Very low
Empty return
Empty return
Return in ballast
Nil
Outward, practically
everywhere; natural
obstacles impose
significant detours
Very sensitive
Sensitive
Not affected
Very high
Very limited
Very limited
Nil
95
crude oil
Africa
Nigeria, Gabon, Congo,
Angola, Algeria, Lybia
North Sea
other countries
CIS (ex USSR)
Venezuela, Mexico
propane, butane,
LPG automotive fuel
regular, premium, unleaded
96
ENCYCLOPAEDIA OF HYDROCARBONS
quality
improvement
conversion
separation
light
blending
heavy
97
Economic factors
gas
C3 LPG
C4 LPG
light naphtha
reformer
gasoline
1 Mt/y
naphtha
gasoline
heavy
naphtha
vacuum residue
1,5 Mt/y
HDS
catalytic
cracker
diesel oil/
heating oil
1,8 Mt/y
visbreaking
LCO
1,8 Mt/y
HCO
vacuum distillate
atmospheric residue
3,5 Mt/y
98
jet fuel
iC4
gas oil
vacuum
distillation
8 Mt/y
scheme-conversion.
HCOHeavy Cycle Oil;
LCOLight Cycle Oil.
atmospheric distillation
Fig. 8. Refining
fuel oil
(20%)
ENCYCLOPAEDIA OF HYDROCARBONS
Fig. 9. Refining
capacities in 1980 and 2004
and projects.
1,031
1,089
1,019
689
734
528
11
Western
Europe
11
North America
Eastern Europe
and other former
Soviet countries
627
484
357
1,002
275
75
18
335
Asia
Africa and
Middle East
14
South and
Central America
1980
4,068 Mt/y
Refining costs
Investment
2004
4,102 Mt/y
projects
135 Mt/y
99
100
Upgraded refinery
8 Mt/y
230
360
360
Cracking complex
(FCC, Alkyl., visbreak.)
375
375
700
550
740
1,020
Total
780
1,475
2,455
ENCYCLOPAEDIA OF HYDROCARBONS
101
102
ENCYCLOPAEDIA OF HYDROCARBONS
103
12
Arabian Light
Brent Blend
10
8
$/bbl
6
4
2
0
2
4
82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
year
$/bbl
7
Rotterdam-Brent-cracking
Rotterdam-Brent-hydroskimming
5
3
1
1
$/bbl
8
US Gulf-LLS-cracking
3
95 96 97 98 99 00 01 02 03 04
6
4
2
0
2
4
95 96 97 98 99 00 01 02 03 04
$/bbl
Singapore-Dubai-hydrocracking
7
Singapore-Tapis-hydroskimming
5
3
1
1
3
95 96 97 98 99 00 01 02 03 04
Fig. 11. Development of net refining margins. In the legends: refining centre, crude type, refinery type.
104
ENCYCLOPAEDIA OF HYDROCARBONS
Bibliography
Favennec J.-P. (sous la coordination de) (1998) Exploitation
et gestion de la raffinerie, in: Le raffinage du ptrole,
Paris, Technip, 1994-1999, 5v.; v.V.
Masseron J. (1991) Lconomie des hydrocarbures, Paris,
Technip.
Olivier Appert
Jean-Pierre Favennec
Centre for Economics and Management
IFP School
Rueil-Malmaison, France
105