Agar Corporation - Sales Flyers: Cost of Slop Oil

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Sales Flyers Cost of Slop Oil Downstream Application Throughput Upstream Application

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WHAT DOES IT COST TO MAKE A BARREL OF SLOP OIL?

Crude oil is currently above $100/bbl. Because of poor oil and water interface/separation control, refineries accidentally dump crude oil and/or refined product to the Waste Water Treatment System (WWTS) on a regular basis. The Oil/Product is not actually lost but is recovered in the WWTS/API Separator. However, it is no longer virgin Crude Oil or Refined Product - the lights have evaporated, the product has been sheared and emulsified by pumps & contaminated with solids. In effect, it has been reduced to recovered SLOP OIL.

The typical refinery will accidentally dump 0.5% to 1.0% of its total throughput to the WWTS because of poor interface/separation control. For a 100,000bpd refinery, this equals 500 to 1,000bpd of recovered SLOP OIL.

What is SLOP OIL worth? It is certainly no longer worth $100/bbl. Would you be willing to pay $80/bbl for another refinery's SLOP OIL? Probably not……but for this example, let's say that it COST $20/bbl every time you make a barrel of SLOP OIL.

Most refineries do not view SLOP OIL as costing them $20/bbl. But it is a COST and a WASTE of valuable product and refining capacity. Refineries view it simply as a Cost of Doing Business because they have been making SLOP OIL for the past 50 to 75 years.

In this example, a typical 100,000bpd refinery will make 500bpd of SLOP OIL. At a COST of $20/bbl, that equals $10,000/day; or $300,000/month; or $3,650,000/year. That is a lot of money in any currency…..

By installing Agar ID-200 Interface Detectors, a US refinery was able to reduce its total HC being dumped to the WWTS by 82% with better interface/separation control (see attached Hydrocarbon Processing article). An 82% reduction in the amount of SLOP OIL being generated is equal to $2,993,000/year in savings/additional profit. Not just for the first single year, but continuing year after year.

Some refineries are using the Agar technology to optimize chemical injection rates for emulsion control (Saudi Aramco Journal of Technology Summer 1997) and foam control (refer to the KOC report on www.agarcorp.com).