(203b) Impact of Tight Oil on Refining

The impact of tight-fracked hydrocarbons has been one of the major contributors to what marginal economic highlights our country has had in the last 6 years.  But what an unfolding event it has been.  We now have reserve levels on the order of Saudi Arabia, and are close to energy independence, at least within the bounds of the NAFTA agreement of 1996. 

At the same time not all tight hydrocarbons are the perfect match to each purchasers needs.  Every well, each local formation and production region, in reality, produce products of strongly site-variant constituents, contaminants, and final user qualities and properties. 

Product markets for the well outputs range from natural gas, NGL’s, and naphtha condensate, to full range crudes (with or without resid-type end points) with all sorts of petrochemical industry implications derived from these sources.

This presentation will discuss two distinct areas :

1. The effect of drilling, recovery, bulk transportation and final treating/conversion facilities on the gas and midstream sales qualities of products and on the physical infrastructure from well to final fuel tap. 

1. The changes that will likely be needed in existing  or new conventionally-planned refineries to

 make using this “wonder crude” wonderful

We will call upon experiences primarily in the Eagleford, Barnett, and Bakken formations to help compare and contrast just some of the current production and ultimate marketing realities of this resource.