DOE funds studies to improve refining

The U.S. Energy Department will fund two projects to develop new refining technologies. The Institute of Gas Technology, Des Plaines, Ill., will work on a technique using microbial cultures to remove contaminants from crude oil. It will pay $192,000 of the project cost, and DOE will pay $780,000. DOE said that the growing proportion of heavy U.S. crude production has resulted in increased concentrations of contaminants in refinery feedstocks.

Oct. 5, 1998

2 min read

The U.S. Energy Department will fund two projects to develop new refining technologies.

The Institute of Gas Technology, Des Plaines, Ill., will work on a technique using microbial cultures to remove contaminants from crude oil. It will pay $192,000 of the project cost, and DOE will pay $780,000.

DOE said that the growing proportion of heavy U.S. crude production has resulted in increased concentrations of contaminants in refinery feedstocks.

It said, "Crude oils delivered today from domestic oil fields are typically becoming heavier, with higher levels of sulfur, nitrogen, and heavy metals. These impurities interfere with refinery production processes and can create air (pollution) and other pollutants."

The University of Kentucky Research Foundation (a consortium of the University of Kentucky, West Virginia University, and the University of Utah) will determine if fine particulate emissions from refineries have a "source signature" that would provide a scientifically sound basis for regulations. The foundation will pay $229,000, while DOE will pay $900,000.

DOE said the U.S. Environmental Protection Agency plans to regulate the release of particles smaller than 2.5 micrometers in diameter.

The National Petroleum Technology Office, Tulsa, selected the projects in the second of five petroleum-related research competitions. DOE said the competitions will provide the core of its future cooperative research program with U.S. oil producers.

Environmental compliance

DOE also said that a National Petroleum Council study estimates oil industry environmental compliance costs will exceed $150 billion during 1998-2010, including $36 billion for capital equipment.

"While larger refining operations are expected to remain viable, up to 10% of U.S. refineries could be at risk of closing, resulting in the loss of over 1 million b/d of capacity.

"With U.S. refineries already operating at near-maximum utilization rates, such a loss could expose U.S. consumers to gasoline price spikes if operations at any one major refinery were to be interrupted," DOE said.