Research Overview
Escalating Energy Requirements Demand New Investments in Refining
The demand for petroleum products – particularly transportation fuels
(gasoline and diesel) and petrochemical feedstocks (such as aromatics and
olefins) – is increasing throughout the world. Traditional markets such as
North America and Europe are experiencing moderate increase in demand, whereas
emerging Asian markets such as India and China are witnessing a rapid surge.
This has resulted in a esqueeze' on existing refineries, prompting a
fresh technological approach to optimize efficiency and throughput. Major oil
companies and technology suppliers/licensors are investing heavily to revamp
their refining technologies in an effort to cater to the growing needs of
customers.
This Frost & Sullivan research examines the emerging petroleum
refining technologies and their impact on the oil industry. The study analyzes
the key regulatory factors influencing technology evolution and adoption,
discussed from the standpoint of gasoline, diesel, petrochemicals, and
intra-refinery issues. Various catalytic processes (such as isomerization,
alkylation, desulfurization, and hydrotreating) and the role of catalytic
cracking and reforming have also been discussed in detail.
New Environmental Regulations Influence Technological Developments
A steady evolution in product specifications caused by an endless wave of
fresh environmental regulations plays a major role in the development of
petroleum refining technologies. In the United States and Europe, gasoline and
diesel specifications have changed radically in the past decades and will
continue to do so in the future. Currently, reducing the sulfur levels of
finished products is the dominant objective. "Sulfur is ubiquitous in
petroleum and refiners are now beginning to push the limits technologically on
how to handle this issue, as tighter product specifications emerge
worldwide," says the analyst.
As petroleum products are shipped worldwide, they need to comply with
stringent environment-related regulations prevalent in specific countries. Japan
and Singapore have already implemented strict legislation/rules and many
countries are likely to follow suit as they confront environmental issues such
as smog. These changing rules also cause a negative impact on the market for
heavy products such as fuel oil.
Refineries Go Hi-Tech
Refineries are eager to adapt to changing circumstances and are amenable to
trying new technologies that are radically different in character. This is
evident from the increasing use of ultrasonic technology and novel separation
methods. Currently, they are also looking to exploit heavy (more viscous) crude
oils, provided they have the refinery technology capable of handling them.
"Heavy crudes are rich in components that are only suitable for fuel oil or
even heavier product disposition," says the analyst. "Transforming the
heavier components into light fractions is thus a necessity," he adds.
However, this requires technological changes – including more effective
use of hydrogen within the refinery – and that increases operating costs.
Heavier crudes could also be contaminated with sulfur and metal particles
that must be removed to meet quality standards. "A deeper understanding of
how catalysts work – both chemically and physically – is providing
greater scope for technological improvements," says the analyst. "Nanotechnology
and combinatorial chemistry are among the techniques that are likely to help
push forward the frontiers of efficiency and selectivity," he says. Even
though the nature of crude oil is changing, refineries are here to stay in the
foreseeable future, since petroleum products satisfy wide-ranging energy
requirements/demands that are not fully catered to by natural gas, liquefied
petroleum gas (LPG), or coal. At present, alternative energy schemes lack
technological sophistication or economic sufficiency to be considered a
substitute for petroleum products.
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