AM-97-22 THE IMPACT OF NEW COMPUTER AND COMMUNICATION TECHNOLOGY ON REFINERY OPERATIONS

Description:

In 1995, for the first time, US consumers spent more money on personal computers (PC’s) than on television sets. Also, in 1995, the number of E-mail messages transferred via the Internet first exceeded the number of items delivered by the US post office. There is currently more US employment in the computing industry than in all of the transportation sector (airlines, railroads, trucking, etc.). These statistics are examples of the dramatic changes that are occurring in the areas of computer and communication technology. We are confronted daily with news reports that suggest our lives are about to be transformed (presumably for the better) through the adoption of the latest new technology. For corporations, reports often imply that implementation of the technology will be the key to improved profitability. In fact, fully twenty-five percent of all capital investments for US corporations are now in the computer and communication area. Yet we know from past experience that the introduction of new technology is seldom smooth, that promised improvements are sometimes hard to achieve, and that scheduled changes are often slow in coming. Problems occur. The computer and communication technology evolution has already had a dramatic effect on refinery operations. This evolution has perhaps been most evident in the automation and process analysis area. Today’s typical control room is quite different from that of twenty or thirty years ago. At the 1996 ISA trade show in Chicago, the changes were quite evident. Many, if not most, vendors were featuring Internet compatible systems, PC interfaces, and multimedia capabilities. The show was more about computer software and hardware than analyzers and actuators. Changes, however, are not limited to the control room. They are also occurring in other areas such as outside operations and in processing equipment capabilities and functionality. The rate of change is accelerating and it is likely that there will be even more dramatic changes over the next ten to fifteen years. These changes will fundamentally alter the way refineries operate and interact with the market. In this paper, we will examine the issue through the questions: What are the key factors that influence the rate of technology adoption in the refining industry? What are the likely scenarios for changes in these factors in the future? How might refinery operations be affected by these changes? What are the problems likely to be with the new technology? What should refineries be doing now to prepare for these changes?