AM-14-35 Optimizing Naphtha Complexes in the Tight Oil Boom

Description:

The shale crude boom is upon us as evidenced by the increased activity in exploration, drilling, transportation, processing, and even public opinion. This is particularly true in North America, where success has been greatest due to advances in crude extraction techniques and recovery methods. North American shale crudes and Canadian tar sands continue to displace waterborne imports, declining from ~50% in 2010 to ~33% in 2013. These domestic crudes offer lower cost raw materials but also present some new technical and logistical challenges. Refiners today face ever increasing demands to optimize current assets and operating expenses in order to maximize profitability. This paper attempts to explore some of the opportunities and challenges associated with shale crudes, aka tight shale oil. One example explored here within illustrates an increase in product value of approximately $6/ BBL and $300M/ year increase in profitability.