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Black Wax Issues Milind D. Deo, Professor Chemical Engineering

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Page 1: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Black Wax Issues

Milind D. Deo, Professor 

Chemical Engineering

Page 2: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Utah Energy Profile

From Energy Information Administration

• Utah produces about 1.2% of the nation’s oil• Contains about 1.5% of the reserves –

286 million barrels• Natural gas percentages are higher• Large reserves of coal• Oil sands• Oil shale

• Most of the oil production is high pour pointparaffinic crude oil – Black Wax

Page 3: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Black Wax Issues

• Only small amounts are mixed with non‐paraffinic crudes and pipelined

• Most black wax is trucked

• Cost and environmental considerations

• Challenges in refining

• Cost differential

Page 4: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

IOGCC Study ‐ 2007

• Investigate the crude oil market dynamics in the Rockies

• identify the conditions causing the precipitous price drop, and the expected duration of these conditions

• recommend both near and long‐term actions that could be taken to correct this situation

Page 5: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Report Findings• Excess supplies are causing significant price differentials.

• Canadian imports will increase. – good for energy security. Canadian imports can overload regional take away capacity and depress local prices. 

• The key is to eliminate the bottlenecks that prevent oil in the Rockies from reaching destinations where it can maintain higher values.

• Exporting pipeline capacity is expected to increase. 

• There has been no significant change in refinery capacity in theregion, although incremental expansions have been executed.

• Refinery processing dynamics have changed due to the increase in production of sour feed. 

Page 6: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Recommendations

• Proactively promote pipeline and refinery development

• Infrastructure development

• Better regulatory framework

• Tax policy to incentivize infrastructure development

• Work with Tribal groups

• Market transparency and facilitation

Page 7: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Some History

• In 1991 three big waterfloods– Redwash, Wonsits Valley, Walker Hollow

• A small company – Lomax Exploration

• U.S.DOE Class I Reservoir Program– Research partner – University of Utah

• Beginning of the Greater Monument Butte Waterflood program

Page 8: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Oil Production

0

5

10

15

20

25

30

1990 1995 2000 2005 2010

Prod

uctio

n, M

illions of 

Barrels per Year

Year

Page 9: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

9

Monument Butte

• To date, invested > $750 million

• 1,340 producing oil wells

• 584 class II water injection wells

• Increased oil production 176% to 17,000 BOPD

Monument Butte Operated Production

0

5000

10000

15000

20000

1980

1985

1990

1995

2000

2005

2010

GR

OSS

OIL

PR

OD

UC

TIO

N (B

OPD

)

HISTORICAL

~17,000 BOPD

NFXOp

From Newfield Production

Page 10: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Black Wax Characteristics

• Good API gravity

• Low viscosity at temperature

• Low sulfur

• High pour point– Implications on product distributions

– Implications on transport and storage within the refinery

• High resid and gas oil fraction

Page 11: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Black Wax Characteristics

From Vince Memmott

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Arabian Light WTI White Rocks Tar Sand Triangle Sunnyside Black Wax

NaphthaDistillateGas OilResid

Page 12: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Compositions

Page 13: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Black Wax is not Bitumen!

• Upgrading technologies– Carbon rejection

– Hydrogen addition

• For rich paraffinic feedstock, nonideal

• Chemical production?– Alpha olefins

• Detergent manufacture

• Other chemical uses

Page 14: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Refining Considerations

• Mature industry

• Unit coordination– Crackers

– Hydrotreaters, etc.

• Flexibility in adjusting feedstock mix– Different oils available

• Maximize specific distillates/products

• Capital expenditures specifically for black wax

Page 15: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Technological Solutions

• Pour point depressants• Mixing and transporting; diluents• Slurry transport – emulsions• Partial upgrading – wellhead or central• Microbial processing• Refining – A project currently being planned by Uinta Partners

• Other

Page 16: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Combined Thermal/Catalytic

Page 17: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Resid Conversion

Page 18: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Oil shale in‐situ

Conventional oil

Oil shale surfaceproduction

Coal

Energy

CO2

Coal‐bed methane

Conventional gas

Deep saline aquifers

ECBM

ECBM: Enhanced coal‐bed methane recoveryEOR: Enhanced oil recovery

EOR

Uinta Basin (Example)

Upgrade

Transportationfuels Oil sands in‐situ

Upgrade

Gas

Integrated Energy and Fuel Production

Biomass

Paraffinic Crudes

PartialUpgrade

H2Water

??

Page 19: Deo Black wax - Crude Oil Quality Association - COQA Wax Issues • Only small amounts are mixed with non‐ paraffinic crudes and pipelined • Most black wax is trucked • Cost

Summary

• Transportation is the biggest problem with Black Wax even though the high pour point oil causes production, storage and refining problems

• Solving this problem will result in significant benefits to all stakeholders