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Crude Oil Assay

For the Non - Technical

June 2014

Bruce Carlile

© - Copyright 2012 Bureau Veritas – All rights reserved


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

■ Established in 1828 Eight Global Businesses


Revenue breakdown
■ A global leader in conformity assessment Government Services
Marine 8%
and certification services in the areas of: & International Trade 7%

■ Quality Consumer Products


11%
■ Health, Safety, & Environment Industry
23%
■ Social Responsibility Commodities 19%

■ Group Key Figures


■ 2013 revenue: €4,2bn
In-Service
■ More than 1330 offices and Certification Inspection
9% & Verification
laboratories in 140 countries Construction
12%
11%
■ 59,000 employees
■ Eight global businesses providing Broad Geographical Presence
Revenue breakdown
a complete set of services including:
The Americas
■ Inspection, testing, audit, certification, risk Asia Pacific 23%
management, outsourcing and training 28%
services
■ Servicing 400,000 customers across a France
wide range of end markets EMEA
20%
29%
• Europe – excluding France
• Middle-East
• Africa

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Extensive Geographic Footprint

EMEA France Asia-Pacific Americas


 460 offices and  180 offices and  420 offices and  270 offices and
laboratories laboratories laboratories laboratories
 22,400 staff  7,600 staff  20,00 staff  16,000 staff
 87 countries  22 countries  30 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

Metals & Minerals Oil & Petrochemicals Agri Commodities &


Fertilizers

Upstream services Trade inspections Agri Commodities


■ Testing of exploration samples; Grade ■ Inspection and sampling of petroleum ■ Inspections and testing of grains,
control; Mineral processing testing; and chemical cargoes on loading and oilseeds, sugar, vegetable oils, feeding-
Outsourcing of mine-site labs. discharge to verify quantity and quality of stuffs, bio-fuels, glycerin, cotton and
the cargo. other commodities.
Trade services
■ Supervision of weighing; Sampling; Laboratory testing Fertilizers
Pre-shipment inspections; Load and ■ Product quality testing at global, highly ■ Quality and quantity determination.
discharge inspections. acclaimed laboratory network. Supervision & Surveying
■ Laboratory outsourcing & technical
Laboratory Testing ■ Quality control and screening,
support. Pre-shipment inspections, Loading and
■ Commercial settlement assays
■ Product quality oversight. discharge supervision, Contractual
accredited to ISO 17025.
■ 4 key product categories: crude, sampling and sealing, Supervision of
petroleum products, bio-fuels and weighing, Draft survey and tank Gauging
Key tested products and Damage surveys .
petrochemicals.
■ Coal; Non ferrous metals; Steel raw
Worldwide Network
materials; Precious metals. Blending and cargo treatment
■ Fully accredited laboratories available
■ Services to enhance oil product quality
24/7 and located at every key point in
and meet certain specifications.
the supply chain from hold and hatch
surveys to loading and discharge
supervision.

© - Copyright 2012 Bureau Veritas – All rights reserved Bureau Veritas Corporate Presentation - 2014 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.

© - Copyright 2012 Bureau Veritas – All rights reserved Bureau Veritas Corporate Presentation - 2014 6
Crude Oil Types

The varying crude oil types & sources:

Conventional Crudes
 Virgin Crudes
 “Dumbbell Crudes” (Blended)

Unconventional Crudes
•Ninian, •Arabian
 Tight Sands or Shale Plays North Light 33°
•Eagle Ford Sea 36° API
38° - 50° API
 Bio-Mass 19.5° -70 API°

 Bitumen and Synthetic crudes •Boscan,


Venezuela
•10° API
Opportunity Crudes
•Empire Mix,
Louisiana Gulf
•Bakken Shale
42.5 API •30° API

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Crude Assay Types

Type Cost Sample Delivery Define Applications


Quantity
Comprehensive $10 - Up to 10 3 to 5 Weeks Detailed analysis on Provide Refiner with value
Assays, Mini- $30K Gallons multiple distillation of the crude (marginal net
assays & fractions (TBP). Used to refining value). Able to
Fractional value crudes based on illustrate petroleum
Evaluations specific refinery products meeting specs.
configurations and Example: gasoline
products specs (MNRVs). meeting octane, diesel
cetane.

Flash Assay or $2,500 – Up to 2 5 to 7 Business “Whole crude” properties Excellent cost-benefit tool
Inspection $5,000 Quarts Days using GC data with NO to obtain the petroleum
Assays Physical distillation work. product volume in
weight%. Quick turn-
around on lab results
featured as a snap shot.
BVI-”Quick $2,500 – 30 mls or 3 to 5 Business Extremely accurate for Used mainly for
Yield” Assay $5,000 more Days HTSD (high temp. sim. preliminary evaluation of
distillation) with LIGHT crude oils prior to
END (C10 –C10) merged purchase. Quick lab
data compared to TBP.. turnaround for demurrage
Preliminary evaluation of savings on marine
crude prior to purchase. movements.

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Mirroring the Refinery

Refinery gases/ LPG’s


•IBP
Laboratory
15°F– 59°F
Atmospheric Crude Oil
Distillation Unit,
Lt. Naphtha
ASTM D2892
TBP 15 / 5 Tower
59°F– 175°F
Hvy Naphtha,
IBP Gasoline

to 175°F– 375°F

752o F Kerosene
(or 400o C)
375°F– 530°F

Diesel Oil
Laboratory
530°F– 650°F
Vacuum
Distillation Unit
Fuel Oil
o
ASTM D5236 •700 F Range
Vacuum Potstill 650°F–1050°F

752o F Residue
•1050o F
to 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° WTI
39.1° Brent
0.13%S Bakken
0.35%S 37.5°
0.40%S 44.1° Arab HVY
0.05%S 27.9° WCS
2.8%S 20.6°
3.34%

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QUICK Yield Crude Quality Monitoring

Comparison of TBP, HTSD and Merged GC Light Ends Data


800
Merged ASTM D7169 & D6730 Modified

700

600

500
Temp (deg C)

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.)

© - Copyright 2012 Bureau Veritas – All rights reserved Bureau Veritas Corporate Presentation - 2014 15
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: Crudeassay@inspectorate.com

Email: bruce.carlile@inspectorate.com Website: www.bureauveritas.com

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

© - Copyright 2012 Bureau Veritas – All rights reserved Bureau Veritas Corporate Presentation - 2014 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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