Oil and Gas Transportation from Production to Users
Saturday, November 9, 2019 1
What’s in a Barrel of Oil?
Saturday, November 9, 2019 2
Beyond the Barrel
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Pipeline Transportation
Pipeline transportation is one of the most reliable and economic mode
of transportation of oil and gas.
This mode of transportation provides a continuous process and not a
batch process as with ships or roads or rail vehicles.
The total quantity to be transported has little effect on unit costs once
the quantity is sufficient to justify the use of the largest practical
carrier unit, but unit costs become less as the distance involved
increases.
Pipeline unit costs, on the other hand, fall with increasing quantities,
and distance has very little effect.
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Pipeline Transportation
Oil Pipelines are the most efficient method of transporting oil. In the
maps below, it can be seen that pipeline routes are very intricate
and widespread.
The pipelines are designed to take oil all over the country that they
inhibit.
America is the best example of these pipeline routes because America
has the longest cumulative mileage of pipeline in the world.
There are so many pipelines throughout the world that it is nearly
impossible to find every single pipeline pump and location, but the
major oil consuming and producing countries have the most total
mileage of pipeline.
The areas in which oil is produced are generally located far away from
main areas of consumption, large market places, cities, and
companies that need oil for production.
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Pipeline Transportation
The routes that these pipelines travel are able to be extremely direct
because the quickest way from one point to another is by traveling
in a straight line.
Pipelines do not disrupt their surroundings allowing them to be built
in the most direct routes possible.
The fact that oil travels quickly though the pipelines and their ability to
directly provide consumer areas with the needed amount is making
pipelines more and more popular, especially in the United States.
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Crude oil Pipelines and Product Pipelines
Crude oil pipelines may transport crude oil from one oilfield to a
refinery, different grades of crude oil from different sources, or
crudes from different fields to different refineries along the pipeline
route. Crudes with high pour points are pumped into pipelines at
elevated temperatures of 60 to 60oC, and such pipelines are often
laid at somewhat greater depths than normal.
Product pipelines are generally designed to transport to a large
variety of products ranging from naphtha to gas oil, the so-called
white or clean oils. The products to be handled are dispatched in a
definite sequence, e.g. naphtha, gasoline, kerosene, gas oil,
kerosene, gasoline, naphtha. The rate of flow of multiproduct
pipelines has a direct bearing on the extent of intermingling of
successive products.
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Crude oil Pipelines and Product Pipelines
The switching into appropriate tankage of the different products as
they arrive at their destination is based on measurements made by
an interface detector, which usually measures the specific gravity of
the product flowing past it. Other properties, such as dielectric
constants or viscosity have also been used.
Spheres, made of thick synthetic rubber and capable of being inflated
with water to a diameter slightly larger than the bore of the
pipeline, are sometimes used to reduce the amount of intermingling
at the interface between two products. Spheres are introduced into
the pipeline through special sphere launchers at the origin of the
pipeline as the switch from one product to another is made.
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Crude oil Pipelines and Product Pipelines
At installations fed by a multiproduct pipeline where interfaces are
received it is necessary to provide separate interface holding tanks.
These hold the interfacial mixture of the two products until it can be
disposed of, usually by blending into a large volume of a
compatible product in a proportion that will not put that product off
specification.
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IndianOil Pipelines
IndianOil operates a network of 13,391 km long crude oil, petroleum
product and gas pipelines with a throughput capacity of 94.79
million metric tonnes per annum of oil and 9.5 million metric
standard cubic meters per day of gas. Cross-country pipelines are
globally recognized as the safest, cost-effective, energy-efficient and
environment-friendly mode for transportation of crude oil and
petroleum products.
As a pioneer in oil pipelines in the country, managing one of the
world's largest oil pipeline networks, IndianOil achieved the
highest-ever throughput of 85.68 million metric tonnes during the
year 2017-18.
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IndianOil Pipelines
IndianOil added 543 km of additional pipeline length during the
year 2017-18, as part of its plans to continuously expand the
network in line with growth in business. Projects currently
under implementation would further increase the length of
the pipelines network to about 20,000 km, and throughput
capacity to 102 million tonnes per annum.
With due emphasis being given to scaling up of natural gas
pipelines, IndianOil is planning to lay a 1,244 km pipeline to
reach LNG imported at Ennore to Nagapattinam, Tuticorin,
Madurai and Bengaluru. This pipeline, along with three other
upcoming gas pipelines - Mallavaram-Vijaipur, Mehsana-
Bhatinda and Bhatinda-Srinagar pipelines would ensure a
significant presence of IndianOil in gas transmission business.
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IOC, HPCL and BPCL Pipelines
Indian Oil operates a network of 13,391 km long crude oil,
petroleum product and gas pipelines with a throughput
capacity of 94.79 mmtpa of oil and 9.5 million metric standard
cubic meters per day (mmscmd) of gas.
Projects currently under implementation would further
increase the length of the pipelines network to about 20,000
km, and throughput capacity to 102 million tonne per annum.
BPCL operates around 2,229 km petroleum product pipelines
with 16.54 mmtpa capacity, while another 500 km with 5
mmtpa capacity is under construction.
HPCL on the other hand operates around 2,514 km of multi
product pipeline having a capacity of 23.57 mmtpa, with
another 14 mmtpa capacity under construction.
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Indian Oil Pipelines
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Pipeline Installation
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Crude Oil Tank Cars
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Marine Offloading Terminal
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Transporting Oil by Sea
Oil shipping accounts for nearly a third of global maritime trade. The
capacity of the world’s fleet of tankers, the ships that transport
crude oil and petroleum products, has increased by 73% since 2000.
They travel the world's major shipping lanes, passing through
strategic locations such as the Strait of Hormuz, the Strait of
Malacca, and the Suez and Panama Canals.
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Maritime Shipping, the Preferred Means of Transportation
Huge quantities of crude oil and refined petroleum products are
transported by ship between production sites, refineries and points
of consumption. For many years, oil shipments have accounted for
about 30% of global maritime trade. In 2011, they accounted for the
bulk of the traffic handled by French ports, representing more than
40% of total tonnage.
According to the United Nations Conference on Trade and
Development (UNCTAD), shipments of crude oil totalled
1.78 billion tons in 2012, while shipments of refined products and
liquefied gas amounted to 1.05 billion tons (of which approximately
230 million tons of liquefied natural gas (LNG)).
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Crude oil continues to account for the lion’s share of maritime
trade, but shipments of refined products have been rising
steadily in recent years. While the volume of crude oil has
remained practically flat since 2006, the tonnage of refined
products and gas has increased by 15%.
This trend is expected to continue throughout the decade as a
result of profound changes in the refining industry, including
the construction of mega refineries in oil-producing countries
(particularly in the Gulf region), the development of new
export capacity in the United States and growing demand in
emerging markets.
At the same time, continued growth in LNG shipments is
projected to further weaken oil’s dominant position.
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Tankers and Supertankers
The oil is transported on purpose-built ships called tankers,
which are classified by their deadweight tonnage (dwt). In
2013, the global fleet comprised about 11,000 tankers, for a
total deadweight tonnage of 490 million. Between 2000 and
2013, overall capacity soared by 73%.
Ultra large crude carriers (ULCCs) are ships with a deadweight
tonnage of 300,000 to 500,000 and a length of over 400 meters.
They fell out of use after the 1973 oil embargo, and most of the
100 or so built have been broken up or converted for other
purposes.
Today’s fleets consist of very large crude carriers (VLCCs),
which have a maximum deadweight tonnage of 300,000;
Suezmax tankers, which have a maximum deadweight
tonnage of 200,000; and Aframax tankers, which have a
deadweight tonnage of 80,000 to 120,000.
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The size of a ship is determined by the canals and straits through
which it travels. A Panamax tanker, for example, cannot exceed 32
meters in width or 80,000 deadweight tonnage in weight. A
Malaccamax tanker can have a deadweight tonnage of up to 300,000,
but its draft is limited to 20 meters.
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Tankers
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FPSOs
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Tanker Capacities
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Tanker Capacities
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Categories of Oil Tankers
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Tankers
Size Comparison with Well known
Tanker Categories Landmarks
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Venassa was a crude oil tanker of Shell. In 1976 her midships
section was removed and converted to a floating dock.
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Oil tanker: Aframax
Length: 247.24 m (811'01")DWT: 108,000,000 kg (238,099,243 lb)
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Transport Safety
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Leak Detection
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Double-hulls are Safe
In case of accident- grounding,
stranding, collision or striking a
submerged object, the space
between the hulls can absorb the
impact and assist in preventing
petroleum from spilling into the
water. No cargo can be loaded in the
space between the hulls.
The individual steel plates on Titanic’s
hull were between 3/4ths of an inch
and an inch thick. Cruise ships have
fairly light scantlings up top, but the
underwater hull is between 28 and
32mm thick - more possibly in
“panting areas “ at the bow and
stern.
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Single Hull Design
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Double Hull Design
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Marine Transportation of Petroleum
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Generally used Shipping Terms
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Best Connected Countries per Region
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Double Bottom Design
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Tank Unloading, Cleaning and Loading
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Draft of a Ship
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Oil Routes and Strategic Straits
The most commonly used crude oil shipping routes originate in the
Middle East. They pass through the Bab-el-Mandeb Strait, which
separates Djibouti in Africa from Yemen in the Arabian Peninsula,
or the Strait of Hormuz, the world’s main oil shipping lane, which
separates the United Arab Emirates and Oman from Iran. After this,
during trips that last two weeks to a month, the tankers travel to:
The United States and the rest of North and South America via the
Cape of Good Hope.
Asia via the Strait of Malacca between Sumatra and Malaysia.
Europe via the Suez Canal or, if they are too wide, via the Cape of Good
Hope, then on to Northern Europe via the Strait of Dover.
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Oil Tanker Lines of the World
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The amount of oil transiting through the Panama Canal, which
celebrated its 100th anniversary in August 2014, has increased
considerably due to growing demand in Asia. A project to widen
the canal to 55 meters was begun in 2007. Barring unexpected
circumstances, the expansion is scheduled to open in 2016.
In August 2014, Egypt too announced plans to double the capacity of
the Suez Canal, though the financing terms have yet to be finalized.
Nicaragua, with the assistance of a Chinese company, is also planning
to build a canal connecting the Pacific Ocean and the Caribbean Sea
that would be fully operational in 2020. And, who knows, maybe
the melting ice pack will open up two new routes via the Arctic
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Bab al-Mandeb
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Cape of Good Hope
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Strategic Importance of Suez Canal
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Panama Canal
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Nicaragua
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Strait Of Malacca
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Oil shipping costs are referred to as charter costs and vary according to
demand. Costs can double depending on the time of year for the
same voyage and the same tanker. They account for 5 to 10% of oil’s
value added.
The amount of oil transported by sea was multiplied by 27 between
1935 and 2012
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