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Exploiting synergy between FCC and feed pretreating units to improve refinery margins and produce low-sulfur fuels
02 Liquid fuels (economics, business, marketing, policy) 02/00831 Advanced aviation fuels: a look ahead via a historical perspective Maurice, L.Q. er ul. FL&, 2001, 80, (5), 747-756. The first ‘jet fuels’ were aviation gasoline (avgas), and the characteristics of subsequent jet fuels have evolved from this original choice, the available supply infrastructure, and the refiners’ capabilities. Earlier on, it was evident that avgas would have to be altered to operate satisfactorily in jet-powered aircraft. The present contribution outlines the various requirements that led to the development of various operational jet fuels, including United States (US) Jet A (European Jet A-l), Jet Propellant JP-4 (European F-40) JP-5 (European F-44), JP-7 (US only), JP-8 (F-34), JP-TS (US only), and JP-8 + 100 (US only). The composition of aviation fuels has generally been determined by specifications that are primarily based upon operational requirements. These include heat content, fluidity, corrosion protection and stability. Moreover, cost is often a primary driver. The chemical composition variations of prototype aviation fuels are compared. Chemical and physical characteristics of the fuels are reviewed within the context of operational requirements. The development of each product is put into the context of two very distinct models, which highlight the importance of cost considerations. A final aim is to foreshadow what may be to come, in the context of JP-8 + 225, JP-900, ‘controlled chemically reacting fuels’, and alternative fuel sources.
02lOO832 Alaska North Slope crude oil price and the behavior of diesel prices in California Adrangi, B. el rrl. E/rerg_r Econontics, 2001, 23, 29-42. In this paper the price dynamics of Alaska North Slope crude oil and LA diesel fuel prices are analysed. The VAR methodology and bivariate GARCH model were used to show that there is a strong evidence of a uni-directional causal relationship between the two prices. The LA diesel market is found to bear the majority of the burden of convergence when there is a price spread. This finding may be seen as being consistent with the general consensus that price discovery emanates from the larger, more liquid market where trading volume is concentrated. The contestability of the West Coast crude oil market tends to cause it to react relatively competitively, while the lack of contestability for the West Coast diesel market tends to limit its competitiveness, causing price adjustment to be slow but to follow the price signals of crude oil. The findings also suggest that the derived demand theory of input pricing may not hold in this case. The Alaska North Slope crude oil price is the driving force in changes of LA diesel price.
02/00833 Algeria’s oil policy: the battle for control Akacem, M. Tlic Joctrnul o/ Energy und Deselopn~~t. 2000, 26, (I), 7176. Algeria has earned its reputation of being a price hawk within the Organization of the Petroleum Exporting Countries (OPEC) and very much committed to keeping its hydrocarbon reserves under government control. It was instrumental in leading to the ownership change by nationalizing the oil sector and taking control of production and pricing policy in 1971. Times have changed, however. A new hydrocarbon law that has yet to be debated in parliament and whose details are unclear has led to the dismissal of the head of state-owned oil/gas company Sonatrach as well as to strikes by the energy sector workers. At the heart of the discontent is who should be charge of the nation’s oil policy. The oil minister is said to want all decisions concerning the energy field to be taken primarily by the government and his ministry in particular. The head of Sonatrach wanted control and was in favour of a more gradual approach to privatizing company. At this time, it is unclear how this will ultimately unfold but the labour unions are certain to put up a stiff opposition to any change in ownership away from the government.
02/00834 An examination of current crude-oil price formulas Liao, H-C. and Yu, T-H. 71re Journal of Energy und Development, 2000, 26, (I), 109-126. World crude oils are very different in their characteristics such as sulfur content and specific gravity. This phenomenon combined with for most markets the volatility of energy prices, bring confusion participants in deciding a right price for a crude. The hedonic model is used here to find a real price of world crude oils; it is a model widely used to determine the prices for products with different quality such as cars, houses, or even eggs. By considering the specialty in the oil industry and world oil market, the prices of 48 of the more popular crudes in 1995 and 1996 are selected to analyse the real crude oil prices. The empirical outcomes show that the hedonic model successfully links the relationship of crude-oil price and its quality, which appears more acceptable for both producers and consumers compared to other formulas. 102
Fuel and Energy Abstracts
March 2002
02/00835 Are petroleum export an engine for growth? Time-series evidence for five oil exporters Van den Berg, H. and Atrayee, G.R. The Journul qf Energy and Development, 2000, 26, (I), 55-70. Researchers have repeatedly confirmed that international trade and economic growth are positively related, yet some writers still doubt that primary exports can promote long-run economic growth. The sharp rises in oil prices in the 1970s and 2000 suggest that petroleum exports may be a better ‘engine for growth’ than other primary products. Using modern time-series methods and a simultaneous equation regression model, the relationship between petroleum exports and economic growth is tested for five petroleum exporters. The results were mixed: petroleum exports were not related to growth in Nigeria, and they were a weaker influence than other exports in Iran and Mexico. In Ecuador and Venezuela, however, petroleum exports were more important for economic growth than other exports. Thus, in general, petroleum exports are not necessarily better or worse than other exports in serving as an engine of growth. 02/00838 Ecological problems of oil exploitation in the Caspian Sea area Efendiyeva, I.M. Journcrl qf Petrolem Science and Engineering, 2000, 28, (4), 227-23 I. Presently, the Republic of Azerbaijan is undergoing a historical period of social, economical and political changes. These reforms are bringing about problems that require immediate solutions. The pivotal point of the reforms taking place in Azerbaijan is the closure of agreements with foreign companies who are contracted for oil exploitation in the Caspian Sea region. The ecological sensitivity of this region requires an industrial system that would have a minimum impact on the environment. Improvement of the environmental conditions in Azerbaijan depends on the social and economical reformations that are taking place in the country. In this article, different environmental problems associated with petroleum extraction operations in the Caspian Sea area are discussed. 02/00837 Economic development and financial deepening revisited: a case study of Kuwait Eltony, M.N. and Al-Mutairi, N.H. The Journal o,f Energy und Dcvelopntcnt, 2000, 26, (I), 127-l 38. The purpose of this study is to examine empirically the relationship between economic development and financial sector performance in Kuwait. In particular, the main objective is to investigate economietrically the direction of the causal relationship between real economic growth and some measures of financial deepening and their policy implications. The empirical results gave support for the supply-leading hypothesis that financial deepening is an engine for real economic growth in Kuwait. However, the empirical evidence also points out that the demand-following hypothesis is also valid in Kuwait. In other words, there is evidence of the coexistence of supply-leading and demand-following processes. Thus, while financial deepening is the engine of real economic growth, economic development itself would feed back and cause more financial deepening in the financial sector. 02lOO838 Exploiting synergy between FCC and feed pretreating units to improve refinery margins and produce low-sulfur fuels Maddox, G.R. et u/. Pet. Coal, 1999, 41, (3-4), 138-147. Future specifications for gasoline and diesel fuels will create challenges for production of low-sulfur fuels, especially in combination with increased diesel quality requirements. European refineries are predominantly based on fluid catalytic cracking (FCC) so these challenges will not be easily met and will require investment for most refineries. The solution is to use the synergy between hydroprocessing and fluid catalytic cracking (FCC) in order to lessen the arduous investments required and create positive returns on these investments. UOP has developed solutions for producing gasoline and diesel fuels that meet or exceed proposed future specifications using our technical understanding of hydrotreating, hydrocracking, and FCC processes. Recently completed studies incorporating a comprehensive understanding of the interactions between the process units have lead to newly developed hydroprocessing flow schemes. Insights from this work enable design of new or revamped feed pretreating units that optimize the performance of the combined conversion complex, which contains the FCC feed pretreatment unit and the FCC unit. Case studies will illustrate several options and their economics. ;28$:;9
Fuel taxes and the distribution
of income in
Yang, H-Y. The Joumulof Energy and Development, 2000, 26, (I), l-18. In common with many other Asian newly industrialized countries (the so-called NICs), Taiwan is experiencing a sustained high rate of growth of demand for fossil fuels along with a rapid economic growth. The forms of fuel critical to economic development and their impact on the living conditions of future generations have led to diverging public
02lOO832 Alaska North Slope crude oil price and the behavior of diesel prices in California Adrangi, B. el rrl. E/rerg_r Econontics, 2001, 23, 29-42. In this paper the price dynamics of Alaska North Slope crude oil and LA diesel fuel prices are analysed. The VAR methodology and bivariate GARCH model were used to show that there is a strong evidence of a uni-directional causal relationship between the two prices. The LA diesel market is found to bear the majority of the burden of convergence when there is a price spread. This finding may be seen as being consistent with the general consensus that price discovery emanates from the larger, more liquid market where trading volume is concentrated. The contestability of the West Coast crude oil market tends to cause it to react relatively competitively, while the lack of contestability for the West Coast diesel market tends to limit its competitiveness, causing price adjustment to be slow but to follow the price signals of crude oil. The findings also suggest that the derived demand theory of input pricing may not hold in this case. The Alaska North Slope crude oil price is the driving force in changes of LA diesel price.
02/00833 Algeria’s oil policy: the battle for control Akacem, M. Tlic Joctrnul o/ Energy und Deselopn~~t. 2000, 26, (I), 7176. Algeria has earned its reputation of being a price hawk within the Organization of the Petroleum Exporting Countries (OPEC) and very much committed to keeping its hydrocarbon reserves under government control. It was instrumental in leading to the ownership change by nationalizing the oil sector and taking control of production and pricing policy in 1971. Times have changed, however. A new hydrocarbon law that has yet to be debated in parliament and whose details are unclear has led to the dismissal of the head of state-owned oil/gas company Sonatrach as well as to strikes by the energy sector workers. At the heart of the discontent is who should be charge of the nation’s oil policy. The oil minister is said to want all decisions concerning the energy field to be taken primarily by the government and his ministry in particular. The head of Sonatrach wanted control and was in favour of a more gradual approach to privatizing company. At this time, it is unclear how this will ultimately unfold but the labour unions are certain to put up a stiff opposition to any change in ownership away from the government.
02/00834 An examination of current crude-oil price formulas Liao, H-C. and Yu, T-H. 71re Journal of Energy und Development, 2000, 26, (I), 109-126. World crude oils are very different in their characteristics such as sulfur content and specific gravity. This phenomenon combined with for most markets the volatility of energy prices, bring confusion participants in deciding a right price for a crude. The hedonic model is used here to find a real price of world crude oils; it is a model widely used to determine the prices for products with different quality such as cars, houses, or even eggs. By considering the specialty in the oil industry and world oil market, the prices of 48 of the more popular crudes in 1995 and 1996 are selected to analyse the real crude oil prices. The empirical outcomes show that the hedonic model successfully links the relationship of crude-oil price and its quality, which appears more acceptable for both producers and consumers compared to other formulas. 102
Fuel and Energy Abstracts
March 2002
02/00835 Are petroleum export an engine for growth? Time-series evidence for five oil exporters Van den Berg, H. and Atrayee, G.R. The Journul qf Energy and Development, 2000, 26, (I), 55-70. Researchers have repeatedly confirmed that international trade and economic growth are positively related, yet some writers still doubt that primary exports can promote long-run economic growth. The sharp rises in oil prices in the 1970s and 2000 suggest that petroleum exports may be a better ‘engine for growth’ than other primary products. Using modern time-series methods and a simultaneous equation regression model, the relationship between petroleum exports and economic growth is tested for five petroleum exporters. The results were mixed: petroleum exports were not related to growth in Nigeria, and they were a weaker influence than other exports in Iran and Mexico. In Ecuador and Venezuela, however, petroleum exports were more important for economic growth than other exports. Thus, in general, petroleum exports are not necessarily better or worse than other exports in serving as an engine of growth. 02/00838 Ecological problems of oil exploitation in the Caspian Sea area Efendiyeva, I.M. Journcrl qf Petrolem Science and Engineering, 2000, 28, (4), 227-23 I. Presently, the Republic of Azerbaijan is undergoing a historical period of social, economical and political changes. These reforms are bringing about problems that require immediate solutions. The pivotal point of the reforms taking place in Azerbaijan is the closure of agreements with foreign companies who are contracted for oil exploitation in the Caspian Sea region. The ecological sensitivity of this region requires an industrial system that would have a minimum impact on the environment. Improvement of the environmental conditions in Azerbaijan depends on the social and economical reformations that are taking place in the country. In this article, different environmental problems associated with petroleum extraction operations in the Caspian Sea area are discussed. 02/00837 Economic development and financial deepening revisited: a case study of Kuwait Eltony, M.N. and Al-Mutairi, N.H. The Journal o,f Energy und Dcvelopntcnt, 2000, 26, (I), 127-l 38. The purpose of this study is to examine empirically the relationship between economic development and financial sector performance in Kuwait. In particular, the main objective is to investigate economietrically the direction of the causal relationship between real economic growth and some measures of financial deepening and their policy implications. The empirical results gave support for the supply-leading hypothesis that financial deepening is an engine for real economic growth in Kuwait. However, the empirical evidence also points out that the demand-following hypothesis is also valid in Kuwait. In other words, there is evidence of the coexistence of supply-leading and demand-following processes. Thus, while financial deepening is the engine of real economic growth, economic development itself would feed back and cause more financial deepening in the financial sector. 02lOO838 Exploiting synergy between FCC and feed pretreating units to improve refinery margins and produce low-sulfur fuels Maddox, G.R. et u/. Pet. Coal, 1999, 41, (3-4), 138-147. Future specifications for gasoline and diesel fuels will create challenges for production of low-sulfur fuels, especially in combination with increased diesel quality requirements. European refineries are predominantly based on fluid catalytic cracking (FCC) so these challenges will not be easily met and will require investment for most refineries. The solution is to use the synergy between hydroprocessing and fluid catalytic cracking (FCC) in order to lessen the arduous investments required and create positive returns on these investments. UOP has developed solutions for producing gasoline and diesel fuels that meet or exceed proposed future specifications using our technical understanding of hydrotreating, hydrocracking, and FCC processes. Recently completed studies incorporating a comprehensive understanding of the interactions between the process units have lead to newly developed hydroprocessing flow schemes. Insights from this work enable design of new or revamped feed pretreating units that optimize the performance of the combined conversion complex, which contains the FCC feed pretreatment unit and the FCC unit. Case studies will illustrate several options and their economics. ;28$:;9
Fuel taxes and the distribution
of income in
Yang, H-Y. The Joumulof Energy and Development, 2000, 26, (I), l-18. In common with many other Asian newly industrialized countries (the so-called NICs), Taiwan is experiencing a sustained high rate of growth of demand for fossil fuels along with a rapid economic growth. The forms of fuel critical to economic development and their impact on the living conditions of future generations have led to diverging public