Big West of California, LLC

Bakersfield Refinery

REFINING 101

July 2008
Outline
Where Does The Crude Oil Come From?
Crude Oil Basics
Refining Concepts
Flowcharts of Petroleum Refineries
Basic Refinery Operations and Optimization
Conversion
Refinery Overview
Where does the Crude Oil Come From?
Kern County produces about
550,000 barrels of crude oil
per day, 68% of the states
total production; enough to
fuel about 5 million
automobiles.
Three of the six largest oil
fields in the U.S. are located
in Kern County
Kern County represents
approximately 10% of the
Nations total oil production.
Source: Greater Bakersfield Chamber of Commerce
What is Crude Oil?
Crude oil is a mixture of
hydrocarbons formed from
organic matter.
Crude varies significantly in
color and composition
Composition varies
Sulfur content
Density varies
Contains sediment and
water

Crude Oil Characteristics
Crude density is commonly measured by API gravity
API gravity provides a relative measure of crude oil
density. The higher the API number, the lighter the
crude
Sulfur content measures if a crude is sweet (low
sulfur) or sour (high sulfur)
Typically less than 0.5% sulfur content = sweet
Typically greater than 1.5% sulfur content = sour
High sulfur crudes require additional processing to
meet regulatory specs
Crude Types Versus Demand
Gasoline Gasoline Gasoline
5 - 15 %
20 - 30 % 40 - 45%
Distillate
20 - 25%
Distillate Distillate
25 - 35% Heavy Fuel 30 - 35%
Oil Heavy Fuel
60 - 75% Oil
Heavy Fuel ~10%
Oil
35 - 55% Asphalt ~5%
Other ~5 -10%
Light Crude Heavy Crude Example
Product Product Product
Composition Composition Demand
Naturally occuring
hydrocarbon molecules do
not meet customer needs.
The refining processes must
adjust the molecules, reshape
them and remove contaminants
to ensure they meet
requirements for:
- end use performance
- environmental performance
Supply and Demand
California

CA now consumes 44 to 45 million gallons of gasoline
and 10 million gallons of diesel fuel per day.
Demand for transportation fuels increased nearly 50%
in last 20 years
Number of refineries producing gasoline in California
dropped from 32 in mid-1980s to 14 today
California now imports 3.5 million gallons of gasoline
per day.

Source: California Energy Commission
Basic Refining Concepts
Crude Separation
Basic Refining Concepts
Basic Flowchart of Petroleum Refinery (1915)
Simplified Flowchart of a Complex Refinery
Basic Refinery Operations
Separation Distillation
Conversion Changing the size or shape of molecules
Re-shape molecules to improve product quality
Catalytic Reforming Unit
Upgrading breaking large molecules into smaller
Coking
Hydrocraking
Treatment / Blending Making on specification products
Removal of impurities desalting, desulfurization,
denitrofication
Mixtures of components to meet specifications
Refinery Optimization
Two areas can not be compromised
Safety
Reliability
Ecomonic optimization is a series of trade-offs
Feedstocks
Availability (crude, Intermediate products), Yields, Cost
Refinery Complexity, Flexibility + Constraints
Crude rate
Maximize to spread fixed costs
Products
Meet market demands
Value added and margins
Operations
Maximize yields, minimize giveaway / inventories
Optimize energy use

Conversion
REFINERY OVERVIEW



Distillation Cracking Treating Reforming
(Separation) (Changing Size) (Changing Shape)
LPG
Raw Fuel gas
LPG C4
I-C4
Naptha Gasoline
Diesel Diesel
Gas Gas
Oil Oil
Resid. Coke
Coker
MHCU
HCU
HDS
CRU
Utilities
For More Information


www.bigwestca.com
www.energy.gov
www.energy.ca.gov
www.pipeline101.com
www.wspa.org
Thank you