Chartering of very large crude carriers, or VLCCs, to ferry oil from the US Gulf Coast to Asia has increased $5 a barrel. This is about twice the price before the attacks in Saudi Arabia. The increase has raised the price of US oil sold overseas at a time when Japan, South Korea and India are replacing the lost deliveries from Saudi Arabia and increasing their stockpiles to buffer against further supply disruptions. It is as important as ever to protect the value of your barrels by using our Pro3® non amine H2S scavenger.
The flexibility of existing producers to increase output and put to work spare capacity is being tested under the current conditions. Additionally, the capacity to extract the oil stored by the SPR and treat it quickly will also determine how fast the market recovers from the drone attack and its long term effect on oil prices. Q2 Technologies regrets the damage on Aramco’s facilities and is ready to help treat oil to remove H2S with Pro3®. Contact us today to discuss how we can help you treat any stored stocks or how to treat your oil at the wellhead.
The oil being sold by the US Strategic Petroleum Reserve (SPR) contains toxic levels of hydrogen sulfide (H2S), a damaging pollutant commonly found in crude oil that results in corrosion of pipelines and raises safety concerns for workers who may inhale the poisonous gas. According to Q2 Technologies, leading developer of H2S removal solutions, this is completely avoidable by proper implementation of Pro3®, a technology that uses safe chemicals to transform the toxic substance into a non-toxic water soluble byproduct. Exxon Mobil, Royal Dutch Shell, Macquarie Group, and PetroChina have faced unexpected challenges stemming from high H2S levels in oil purchased from the Department of Energy's SPR last fall.
Managing H2S is a challenge at every stage of gas operations. H2S mitigation techniques are implemented in order to preserve the environment, take care of workers, avoid corrosion and bad smells, and protect the value of products. In selecting a gas sweetening process, responsible engineers need to consider many variables such as gas stream pressure, impurities present in the feed gas, composition of the acid gas and quantity of sulphur to be removed. H2S mitigation technologies are not mutually exclusive and a combination of techniques might be used.
Once H2S testing has been performed (see blog posts on sampling and testing), it is necessary to mitigate its impacts and bring the crude oil to the desired specifications. There are mechanical/operational (physical), biological and chemical mitigation techniques from which engineers choose according to crude characteristics, H2S concentration, economic considerations, and other variables. Hydrogen sulfide is not found in isolation but together with methane, hydrogen and higher hydrocarbons, and traces of nitrogen-, oxygen-, calcium-, and metal- containing species which complicate the selection of the most suitable H2S mitigation technique. In this article we discuss the multiple H2S removal techniques commonly used in crude oil.
The presence of H2S in oil impacts not only the oil price but handling requirements. However, there is no standardized H2S test method specific to crude oil. Although H2S is a single molecule, it is hard to determine its exact levels in crude and many testing methods are available. Ideally, testing is to measure what is actually occurring in the sampling point. However, many sulfur compounds, for example, hydrogen sulfide and mercaptans, are reactive and their concentration in samples may change during sampling and analysis. The most common testing methods and the key considerations when mitigating H2S in crude are discussed here.
Industry experts will gather to share insights and experiences regarding H2S removal from crude oil. Do not miss the opportunity to participate in the first COQA Panel to be held at the Hilton Riverside in New Orleans on March 14th. Hugo Lozano from Q2 Technologies will discuss along with other panelists the key points involved with crude oil treatment to reduce H2S.
While the traditional oil price benchmark has been the Brent crude, oil production in that region has declined whereas the West Texas Intermediate has gained importance and is a valuable reference. The adoption of WTI-Houston pricing would be a significant change in benchmarking history and would acknowledge the importance of US a marginal barrel supplier with market impacts worldwide.
Thank you to the Texas Business Hall of Fame Foundation. Our Hugo Lozano Jr., Vice President and General Manager, was selected as the 2018 scholarship recipient at Rice University's MBA program. This is a great honor and we are very proud of his achievement.