Midstream Fundamentals in the Oil and Gas Value Stream

Transcription

1 The Rocky Mountain Pipeliners Club Presents: a Midstream Fundamentals in the Oil and Gas Value Stream a March 30, 2016

2 About the Rocky Mountain Pipeliners Club Formed in April 2015 to provide: Networking Opportunities Scholarships Foster Education and Training It is our belief that the most important commodity in our industry is our workforce. We serve our members and constituents in a number of ways, but the club s primary purpose is to provide scholarships to men and women looking to advance their careers through education. We differentiate ourselves in that we support licensed field workers as much or more than degreed professional employees. 2

3 Midstream Fundamentals 3

4 TYPES OF FLUIDS Midstream incorporates the transportation of a variety of fluids utilized in the energy industry, including: Crude Oil Natural Gas Natural Gas Liquids Biofuels Carbon Dioxide Produced Water Refined Products 4

5 Pipelines 5

6 Pipelines Components Engineering Economics Operations Control Maintenance Construction 6

7 Pipelines - Components Pipe Coatings Fittings Valves Actuators Pump & Compressors Prime Movers Meters 7

8 Pipelines - Components 8

9 Pipelines - Components 9

10 Pipelines - Engineering Hydraulics Route Selection Line Size, Wall Thickness Pump Selection Flow & Pressure Control Storage Station Layout 10

11 Pipelines - Engineering 11

12 Pipelines - Engineering 12

13 Pipelines - Engineering 13

14 Pipelines - Economics $/BBL Investment Decisions 14

15 Pipelines - Economics 15

16 Pipelines - Operations Measurement Product Quality Control Room Scheduling Pump Station Control 16

17 Pipelines - Operations 17

18 Pipelines - Control SCADA Pressure Control Valve Variable Frequency Drive Leak Detection 18

19 Pipelines - Maintenance Product Releases Third Party Damage, Corrosion Damage Prevention Program Integrity Management Plans Repairs Hydro-static Testing Internal Line Inspections 19

20 Pipelines - Maintenance 20

21 Pipelines - Maintenance 21

22 Pipelines - Construction 22

23 Pipelines - Construction 23

24 Measurement 24

25 Measurement Goal Volume In = Volume Out Applications Custody Transfer Check Meters/Leak Detection 25

26 Measurement Must Measure Volume Pressure Temperature May Use Quality Sampling Prover 26

27 Measurement 27

28 Measurement Meter Types PD Turbine Orifice Ultrasonic Coriolis 28

29 Measurement 29

30 PROCESSING 30

31 PROCESSING Midstream processing may be required to accommodate third party crude oil or natural gas specifications. This may include: Midstream Crude Oil Processing o Oil / Water Separation o Crude Oil Polishing / Stabilization Midstream Natural Gas Processing o Vapor-Liquid Separation o Dehydration (Glycol, Dry Desiccant) o Gas Sweetening 31

32 PROCESSING Midstream Natural Gas Processing Vapor-Liquid Separation o 3-Phase Separation: Gas / Hydrocarbon Liquid / Produced Water o Typical Equipment Slug Catcher Knockout Bulk Liquids Vortex Separator Knockout Fine Liquids Coalescing Filters / Separators Knockout Fine Mists 1,000 bbl Slug Catcher Holms Mesa Compressor Station 32

33 PROCESSING Midstream Natural Gas Processing Glycol Dehydration o Gas Initially Saturated in Water o Counter-Current Flow of Glycol Gas Flows Up The Tower Glycol Flows Down The Tower o Packed Bed or Trays o High Pressure & Temperature (>1,000 psig, 120 o F) o Reduce Water Content ~4 lbm H 2 O / MMSCF Gas Glycol Dehydration System PetroWiki 33

34 PROCESSING Midstream Natural Gas Processing Dry Desiccant Dehydration o Remove More H2O Than Glycol Dehydration - ~Low PPM Levels o Desiccant Beds Must Be Regenerated Desiccant System PetroWiki 34

35 PROCESSING Midstream Natural Gas Processing Gas Sweetening o Required for High Levels of H 2 S and CO 2 o Three (3) Common Techniques o Amine, SulfaTreat, UltraFab Gas Sweetening - Amine o Similar Process to Dehydration o Counter-Current Flow o Packed Bed or Trays o Gas Leaves Tower Saturated in H 2 O 35

36 PROCESSING Midstream Natural Gas Processing Gas Sweetening - SulfaTreat o Physical Absorption (Iron Oxide) o Reacts with H 2 S to Form Pyrite o Once Chemical is Used, Must Be Replaced Gas Sweetening - UltraFab o Flooded Tower Triazine Reacts with H 2 S o Once Chemical is Used, Must Be Replaced SulfaTreat System West Compressor Station 36

37 Storage 37

38 BULK STORAGE There are various types of bulk storage equipment / methods utilized in Midstream. Liquids o Atmospheric Storage API 650 Bulk Storage Tanks Fixed Roof, Floating Roof (Internal / External), 500 Bbl to 350+ MBbl API 12F Bulk Storage Tanks Fixed Roof, 90 Bbl to 750 Bbl Typical o Pressurized Storage Bullet Tanks 18,000 gallon to 90,000 gallon Pressurized Spheres 1,000 to 75,000 Bbls Natural Gas o Underground Storage Salt Caverns, Mines, Acquifers, Depleted Reservoirs, Hard-Rock Caverns 38

39 BULK STORAGE Atmospheric Storage API 650 & 12F Fixed Roof Tanks o Maximum Internal Pressure of 2.5 psig o Tanks Must Breath During Normal Operations o 500 Bbl to 350+ MBbl Douglas Rail Facility, Douglas WY 140,000 Bbl API 650 Tanks 39

40 BULK STORAGE Atmospheric Storage API 650 External Floating Roof Tanks o Used for Low Vapor Pressure Products (i.e. Crude Oil) o Minimal Vapor Losses o Roof Floats on Liquid Surface o Open Roof so Rain & Snow Can Accumulate 40

41 BULK STORAGE Atmospheric Storage API 650 Internal Floating Roof Tanks o Combination of Fixed and Floating Roof Design o Minimal Vapor Losses o Roof Floats on Liquid Surface o External Roof Prevents Accumulation of Precipitation on Floating Roof 41

42 BULK STORAGE Liquid Storage - Pressurized Bullet Tanks o ASME Section VIII o High Vapor Pressure Products o Natural Gas Liquids ( NGL ) s o Refined Products o No Breathing Required o 18,000 to 90,000 gallon o o F Pressurized Spheres o 1,000 75,000 Bbl Centennial Gas Plant, Briggsdale CO 30,000 gallon Propane Sphere - Wikipedia 42

43 BULK STORAGE Natural Gas Underground Storage Underground Storage o Salt Caverns o Mines o Aquifers o Depleted Reservoirs o Hard-Rock Caverns 43

44 Marketing 44

45 Creating Value Through Marketing Minimize your Differential, Maximize Well Head Price Realizations Differential = Index Pricing Minus Transportation Fees, Minus Processing or Terminal Fees Plus/Minus Quality & Quantity Adjustments (BTU or API Gravity) 45

46 Natural Gas Value Chain Well Head Pipeline Processing Plant Residue Gas Natural Gas Liquids NGL s OR 46

47 Crude Oil Value Chain Pipeline, Truck, Rail Terminal or Storage Hubs Well Head Refining Diesel Gasoline Jet Fuel 47

48 Index Pricing NYMEX - New York Mercantile Exchange WTI - West Texas Intermediate Priced at Cushing, Oklahoma.The largest storage facility, most liquid market (most buyers and sellers) Henry Hub - Erath, Louisiana Connects to many interstate pipelines and can transmit gas to many end-users. Mt. Belvieu - Mont Belvieu, Texas Largest NGL Processing Hub 48

49 Fees Natural Gas Infield Gas Trans. Gathering ($/Mcf) Compression ($/Mcf) Gas Processing Transportation ($/Mcf) Fractionation ($/Gal) Fuel ($/Mcf or % of Inlet) Or Percent of Proceeds (% of Sales Revenue) Crude Oil Infield Crude Trans. Pipeline Gathering ($/bbl) LACT Metering ($/bbl) Trucking ($/bbl) Long Haul Terminalling/Pump Over ($/bbl) Storage ($/bbl/month) Long Haul Pipeline ($/bbl) Rail ($/bbl) 49

50 Natural Gas Processing - PoP Example Production Economics No Processing Processing WH Volume 1,000 1,000 BTU - Wet Well Head 1,350 BTU - Dry, Net of NGLs 950 Gallons Per Million (GPM) 10 Index Price ($/Mmbtu) $2.00 $2.00 Transportation ($/Mcf) -$0.50 -$0.50 Compression ($/Mcf) -$0.05 -$0.05 Fuel (% of Inlet) 2% Fractionation ($/Gal) -$0.10 PoP (25% of NGL Value) -$0.74 PoP (25% of Residue Value) -$0.34 NGL Processing Uplift $2.21 Processing can add immense value to your gas stream Net WH Price ($/Mcf) $2.15 $ % uplift Processing Economics Component % of Gallons Gallons $/Gallon $/Component Frac Fee 25% PoP Net Revenue $/WH Mcf Ethane 40% 3,800 $0.17 $646 $ (380) $ (67) $ 200 $0.20 Propane 25% 2,375 $0.45 $ 1,069 $ (238) $(208) $ 623 $0.62 IsoButane 12% 1,140 $0.55 $627 $ (114) $(128) $ 385 $0.38 Normal Butane 11% 1,045 $0.55 $575 $ (105) $(118) $ 353 $0.35 Natural Gasoline 12% 1,140 $0.86 $980 $ (114) $(217) $ 650 $0.65 Residue Gas Economics Trans $/WH Component Mcf less Fuel MMBtus $/Btu Revenue Fee Comp Fee 25% PoP Fee Net Revenue 50Mcf Methane $2.00 $ 1,862 $ 466 $49 $ 337 $1,011 $ 1.01

51 THANK YOU CSM! Andy Siegfried - President Zion Engineering Quinn Bailey - COO Zion Engineering Stephen Parmentier - Project Engineer Vanderpool Pipeline Engineers Josh Stevens - Director Finance 3 Bear Energy, President Rocky Mountain Pipeliners Club 1550 Larimer Suite 774 Denver, CO info@rmpipeliners.org 51