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Category  >>  How It Works  >>  What is the process of crude oil refining in oil and gas?
HOW IT WORKS
Updated : September 17, 2025

What is the process of crude oil refining in oil and gas?

Published By Rigzone

I. High-level purpose and where refining fits in the value chain

Refining converts mixed crude oil into specification fuels, petrochemical feedstocks, lubricants, and other products by physical separation, chemical conversion, and product treating/blending. It links upstream crude supply to downstream marketing and petrochemicals.

  • I.I Purpose: maximize margin by turning lower-value crude into higher-value products that meet strict quality and emissions specifications.
  • I.II Value chain position: midstream/downstream node receiving crude via pipeline/ship, processing it in atmospheric/vacuum trains plus conversion/treating units, then dispatching products to terminals.
  • I.III Core levers: crude selection, separation efficiency, conversion severity, hydrogen and energy management, product blending to specs.

II. Step-by-step process flow (from crude in to products out)

  • II.I Crude reception and preparation
    • Stabilization and heating: bring crude to target temperature for desalting and fractionation.
    • Electrostatic desalting: wash with 3–10% water, coalesce salts/solids; reduce salts, BS&W, and corrosives.
  • II.II Atmospheric distillation (CDU)
    • Function: primary fractionation at near-atmospheric pressure into gas, naphtha, kerosene, diesel, AGO, atmospheric residue (AR).
    • Operation: furnace heats crude to 340–370 °C; column uses trays/packing, pumparounds, side strippers to set cutpoints.
  • II.III Vacuum distillation (VDU)
    • Function: distill AR at 30–100 mbar equivalent to produce LVGO/HVGO and vacuum residue (VR) without thermal cracking.
    • Operation: lower pressure and quench/pumparounds control flash zone temperature and reduce coke/fouling.
  • II.IV Conversion of heavy molecules to lighter products
    • Fluid catalytic cracking (FCC): HVGO to LPG/C3–C4 olefins, gasoline, LCO; coke burns off in regenerator to supply heat.
    • Hydrocracking: VGO/DAO/AR (with prior treating) to jet/diesel/naphtha under high H2, 120–200 bar, 360–430 °C.
    • Visbreaking: mild thermal cracking of VR to reduce viscosity and make fuel oil/gasoil.
    • Delayed coking or flexicoking: thermal cracking of VR to naphtha/gasoil and petroleum coke.
    • Solvent deasphalting (SDA): precipitate asphaltenes from VR using propane/butane solvent; DAO feeds hydrocracking/FCC.
  • II.V Treating and quality upgrading
    • Hydrotreating (HDS/HDN/HDA): remove S/N/olefins; units for naphtha, kerosene/jet, diesel, VGO and FCC naphtha.
    • Naphtha reforming (CCR/SR): raise octane by dehydrogenation/cyclization; co-produces H2.
    • Isomerization: light naphtha C5/C6 paraffins to isoparaffins for octane.
    • Alkylation: C3/C4 olefins + isobutane ? high-octane alkylate (acid catalysis).
    • Merox/caustic treating: mercaptan sweetening for LPG/kerosene/gasoline where applicable.
  • II.VI Gas and sulfur management
    • Refinery fuel gas (RFG) treating: amine absorption to remove H2S/CO2.
    • Sour water stripping (SWS): remove H2S/NH3 from process water.
    • Claus sulfur recovery + tail gas treating: convert H2S to elemental S to meet emissions.
    • Hydrogen production/purification: SMR/ATR and PSA for H2 makeup and recycle loops.
  • II.VII Product blending, storage, and dispatch
    • Blend to spec: combine blendstocks (alkylate, reformate, isomerate, FCC naphtha) to meet RVP, octane, sulfur, density, flash point, CFPP/Pour, aromatics, smoke point.
    • In-line or tank blending with analyzers for real-time control; custody transfer metering and additive injection.
  • II.VIII Utilities and flare (enablers)
    • Steam, cooling water, power/cogeneration, instrument air, nitrogen; flare/relief for safe depressurization.

II.IX Typical distillation cut ranges and uses

FractionTypical initial–final boiling range (°C)Main uses
LPG= -42 to 0Fuel, petrochemical feed
Light naphtha30–90Isomerization, petrochemicals
Heavy naphtha90–180Reforming to gasoline blendstock + H2
Kerosene160–240Jet/kerosene
Diesel/AGO240–360Diesel/gasoil
VGO360–520 (vacuum)FCC/hydrocracking feed
Vacuum residue520+Coking, SDA, asphalt, fuel oil

III. Major equipment/components and their functions

  • III.I Distillation columns: trayed/packed with pumparounds, side strippers; separate by volatility.
  • III.II Fired heaters/furnaces: raise feed temperature; control severity; major fuel consumers.
  • III.III Heat exchangers/preheat trains: recover heat from products/strips to preheat crude; pinch-optimized networks.
  • III.IV Reactors: fixed-bed trickle flow (hydrotreat/hydrocrack), ebullated-bed (resid hydrocracking), fluidized bed (FCC).
  • III.V Regenerators: FCC catalyst coke burn; maintain catalyst activity and heat balance.
  • III.VI Compressors/blowers: wet gas compressors, FCC air blowers, hydrogen recycle compressors.
  • III.VII Separators/flash drums: high-pressure separators, three-phase drums; phase split and gas removal.
  • III.VIII Amine contactors/strippers: acid gas removal from fuel gas/H2 streams.
  • III.IX Sulfur recovery/TGTU: Claus converters, condensers, tail gas treating to meet SOx limits.
  • III.X Hydrogen plant and PSA: steam methane reformer, shift, PSA to produce/purify H2.
  • III.XI Utilities: boilers, cooling towers, air/nitrogen units, flare systems, electrical substation/cogen.
  • III.XII Storage and blending: tanks with mixers, in-line blenders, meters, analyzers.

IV. Key performance drivers (efficiency, cost, safety, emissions)

  • IV.I Crude slate optimization
    • Match crude properties (API, sulfur, TAN, metals) to unit constraints and desired product slate.
    • Blend crudes to manage fouling/corrosion and maximize middle-distillate yields.
  • IV.II Separation efficiency
    • Column pressure/temperature profiles, reflux, pumparounds, and side draw rates set cutpoint sharpness and reduce overlaps (losses of value).
    • Desalter efficiency controls downstream corrosion/fouling; target salt = 1–3 PTB and BS&W = 0.1–0.2%.
  • IV.III Conversion severity and catalyst health
    • Hydroprocessing: hydrogen partial pressure, temperature ramp, LHSV, WABT; manage ?P and H2 consumption.
    • FCC: catalyst activity/rare earth level, circulation rate, regenerator temperature, wet gas compressor capacity.
  • IV.IV Hydrogen and utilities balance
    • Hydrogen network integrity: avoid contamination (H2S, NH3, light ends) that poisons catalysts.
    • Energy Intensity Index (EII) reduction via heat integration, furnace efficiency (O2 trim), and cogeneration.
  • IV.V Product quality and blending control
    • Real-time analyzers/APC keep octane, RVP, sulfur, flash point, density, freeze/smoke point, and cetane within margin-maximizing windows.
  • IV.VI Safety and emissions
    • Inherently safer design for high-risk units (e.g., alkylation acids, high-pressure H2 reactors, FCC CO boilers).
    • SOx/NOx/CO2/VOC minimization via SRU performance, amine optimization, flare minimization, LDAR.

IV.VII Core equations and operational formulas

API gravity and specific gravity

API = 141.5/SG_{60°F} - 131.5

Simple mass balance (estimated)

\sum Y_i = 1 - L - W where Y_i are product mass yield fractions, L are losses, W is water removal.

Relative volatility and minimum stages (Fenske)

N_{min} = \frac{\ln\left(\frac{x_D/(1-x_D)}{x_B/(1-x_B)}\right)}{\ln(\alpha_{avg})}

FCC conversion (to 221 °C end point, example)

Conversion = 1 - \frac{LCO + HCO + Slurry}{Fresh\ Feed}

Hydrogen balance

H_2^{net} = H_2^{make} + H_2^{recycle} - H_2^{consumed} - H_2^{losses}

Energy intensity index (normalized)

EII = \frac{Actual\ energy\ use}{Standard\ energy\ use} \times 100

Combustion CO2 estimate

CO_2 = \sum_i Fuel_i \times EF_i

V. Typical challenges/bottlenecks and mitigation strategies

  • V.I Fouling and corrosion
    • Desalter underperformance, inorganic/organic chlorides, naphthenic acid corrosion (high TAN), and metals drive fouling/corrosion.
    • Mitigation: optimize wash ratio, emulsion control, caustic injection strategy, neutralizers/inhibitors, upgrade metallurgy in hot-acid zones, maintain overhead corrosion control (pH, filming amines, dehydration).
  • V.II Unit constraints
    • FCC wet gas compressor, regenerator air blower, main fractionator bottlenecks; hydroprocessing H2 partial pressure and recycle purity; VDU firing/coke constraints.
    • Mitigation: debottleneck via revamps (e.g., add pumparound, larger condensers), optimize cutpoints, increase catalyst activity, recover H2 via PSA upgrades, improve overhead condensation.
  • V.III Hydrogen and sulfur loops
    • Amine foaming/loading, SRU capacity shortfalls, SWS ammonia overloading.
    • Mitigation: amine filtration/antifoam, solvent strength/temperature control, parallel contactors, SRU/TGTU optimization, split-flow SWS and reboiler duty control.
  • V.IV Product spec risks
    • Gasoline RVP/octane swings, diesel cold flow/sulfur, jet smoke point/aromatics, kerosene freeze point.
    • Mitigation: APC-driven blend control, component segregation, add isomerate/alkylate, adjust reformer severity, winter/summer blending recipes.
  • V.V Energy and emissions
    • High furnace fuel, flaring, SRU upsets causing SOx spikes.
    • Mitigation: heat-integration cleaning and re-pinch, oxygen trim/stack monitoring, flare gas recovery, CO boiler tuning, excess air control, cogen dispatch optimization.
  • V.VI Process safety
    • High-pressure H2 systems (embrittlement), FCC afterburn/CO excursions, alkylation acid hazards.
    • Mitigation: materials selection and inspection intervals, robust SIS/relief design, reactor effluent cool-down controls, acid containment and water-wash systems, operator competency and drills.

VI. Why refining matters economically/operationally

  • VI.I Margin uplift: converts crude into on-spec fuels and petrochemical feedstocks; margin driven by product cracks and refinery complexity.
  • VI.II Supply reliability: stable fuel supply for transport, industry, and power; flexibility to process varied crude slates.
  • VI.III Compliance and sustainability: meet evolving fuel sulfur/aromatics standards and reduce emissions through sulfur recovery, energy efficiency, and hydrogen management.
  • VI.IV Integration value: feedstocks for petrochemicals (ethylene, propylene, BTX); synergy between reforming/FCC/steam crackers enhances overall asset returns.

Disclaimer: The information provided here is for informational and educational purposes only. These insights are intended as general guides and may not reflect your specific circumstances. Salary figures are approximate and can vary by region, employer, and individual experience. Career, educational, and industry guidance offered here should not replace consultation with qualified professionals, employers, or educational institutions. Nothing presented should be interpreted as legal, financial, or investment advice, nor as a recommendation for commodity or securities trading. Always seek advice from appropriate professionals before making career, educational, or financial decisions.

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