A Review on Energy Efficiency Improvement methods for Oil and Gas Industries

Abstract

Energy is an essential input for almost all productive sectors in general and industry in particular. It is one of the most important inputs in the process of economic growth and industrial development. The rate of energy consumption varies across different industries depending on technological progress, extent of economic activities and several other factors. Industrial energy consumption at world level is expected to increase by 1.4 percent per annum. The industries are constantly in search of processes, technologies, and energy conservation opportunities which can help them reduce their consumption of energy. The oil and gas industries are energy intensive and require significant amounts of energy to extract resources from the ground, process them, and transport them to the end-user. There are many different opportunities for these industries as energy efficiency can help in reducing energy consumption and lowering operating costs. The present paper highlights the available energy efficiency improvement techniques in different areas of oil and gas industries.

Full text

2nd Conference on
Emerging Trends in Energy Conservation
A Review on Energy Efficiency Improvement methods for
Oil and Gas Industries
A Review on Energy Efficiency Improvement methods for Oil and
Gas Industries
Mostafa Mahinroosta
Tel: +98-026-45364585, Mahinroosta2010@gmail.com
Abstract
Energy is an essential input for almost all productive sectors in general and industry in
particular. It is one of the most important inputs in the process of economic growth and
industrial development. The rate of energy consumption varies across different industries
depending on technological progress, extent of economic activities and several other factors.
Industrial energy consumption at world level is expected to increase by 1.4 percent per
annum. The industries are constantly in search of processes, technologies, and energy
conservation opportunities which can help them reduce their consumption of energy. The oil
and gas industries are energy intensive and require significant amounts of energy to extract
resources from the ground, process them, and transport them to the end-user. There are
many different opportunities for these industries as energy efficiency can help in reducing
energy consumption and lowering operating costs. The present paper highlights the
available energy efficiency improvement techniques in different areas of oil and gas
industries.
Keywords: Oil and Gas Industry, Energy Efficiency Improvement, Energy Conservation,
Energy Saving.

2nd Conference on
Emerging Trends in Energy Conservation
A Review on Energy Efficiency Improvement methods for
Oil and Gas Industries
Introduction
Energy is undoubtedly one of the most important commodities for assessing the
performance and efficiency of any industry [1-3]. Energy intensity (energy consumed per
unit of output) is an indicator of efficiency in energy use and a key determinant of the
projections of future energy demand [1]. By current increase in energy consumption rates,
energy supply will be a real challenge in a near future for the whole world and even for
currently rich oil countries [4]. Oil and gas industry is an energy-intensive industry and
therefore finding energy efficiency improvement ways for better performance of energy is a
necessity [5, 6]. Energy use in a refinery varies over time due to changes in the type of crude
processed, the product mix (and complexity of refinery), as well as the sulfur content of the
final products. Furthermore, operational factors like capacity utilization, maintenance
practices, as well as age of the equipment affect energy use in a refinery from year to year
[7]. Oil and gas companies must have a strong financial incentive to save energy, because of
the large share of energy in the overall cost of operating their facilities. Efficient energy use
reduces costs along the whole supply chain. Energy intensity in both the upstream industry
and in refining has fallen significantly since 2007 [5]. On the other hand, energy use is also a
major source of emissions in the refinery industry, making energy efficiency improvement an
attractive opportunity to reduce emissions. Energy efficiency should be an important
component of a company's environmental strategy. In short, energy efficiency investment is
sound business strategy in today's manufacturing environment [2, 8-10]. The aim of this
paper is to highlight the existence of potential opportunities and some energy saving
techniques to decrease energy consumption in oil and gas industry.
Energy Efficiency
Saving energy through improved efficiency and conservation has a central role to play in
reconciling the goals of economic development, energy security and environmental
protection [11]. Finding ways to use energy more efficiently can make a major contribution
to moving the world onto a more sustainable energy path [6]. In most developed countries,
there is a long standing tradition of public policies designed to improve energy efficiency.
Energy efficiency standards are prime examples of such policies. Also, measures to boost
energy efficiency of appliances are generally considered by economists as one of the best
policies [12]. Energy efficiency refers to the ratio between the inputs of energy-be it a
primary source like fossil fuels or an energy carrier such as electricity or hydrogen-and the
output of an energy service, such as light, heat or mobility. Improving energy efficiency, by
reducing the quantity of energy consumed, can enhance energy security. Energy efficiency
can be enhanced through the application of new technology that yields a lower input/output
ratio, using the same fuel or an alternative. Improving energy efficiency is not the same as
energy conservation which, strictly speaking, refers to consuming less of a given energy
service, and therefore consuming less of the energy that would be needed to provide it [11].
Energy efficiency is increased when an energy conversion device undergoes a technical

2nd Conference on
Emerging Trends in Energy Conservation
A Review on Energy Efficiency Improvement methods for
Oil and Gas Industries
change that enables it to provide the same service while using less energy. The energy-
saving result of the efficiency improvement is often called "energy conservation." As a result,
energy efficiency can reduce resource use and environmental impacts [10]. Energy efficiency
varies dramatically across industries and manufacturing processes, and even between plants
manufacturing the same products. Efficiency can be limited by mechanical, chemical, or
other physical parameters, or by the age and design of equipment [13]. When energy enters
into an industrial section, it is usually wasted in two main regions: 1) generation, distribution
and conversion units and 2) downstream area [10].
Energy Management
Changing how energy is managed by implementing an organization-wide energy
management programs is one of the most successful and cost-effective ways to bring about
energy efficiency improvements. An energy management program creates a foundation for
improvement and provides guidance for managing energy throughout an organization. In
companies without a clear program in place, opportunities for improvement may be
unknown or may not be promoted or implemented because of organizational barriers [7].
Many companies have developed and implemented formal energy management systems,
which seek to incorporate efficiency improvements. Implementation of strong management
systems can provide the rigor and discipline necessary to drive continuous improvement
[11]. Energy management includes planning and operation of energy-related production and
consumption units. Objectives are resource conservation, climate protection and cost
savings, while the users have permanent access to the energy they need. It is connected
closely to environmental management, production management, logistics and other
established business functions. Energy management is the proactive, organized and
systematic coordination of procurement, conversion, distribution and use of energy to meet
the requirements, taking into account environmental and economic objectives [14]. The
implementation of an energy management and optimization system for the existing energy
assets is an alternative that requires less investment and can be implemented quicker than
traditional energy cost reduction methods [15]. An important early stage in any energy
management cycle is the forecasting of future energy demand based on the existing
knowledge of the system [16]. Applying energy management systems involving the use of
information technology to analyze and control energy consumption in production and
refining processes is one of the ways that oil and gas industry efforts to improve energy
efficiency [5].
The following 5-stage energy efficiency 'staircase' is based on the strategy Shell has adopted
in their management of energy [16]:
1- Understand the energy profile type of the facility
2- Specific assessment of the energy demands on each installation
3- Meaningful performance measures with good data
4- Effective management review and forecasting processes
5- Embed ownership and culture of energy management in production teams

2nd Conference on
Emerging Trends in Energy Conservation
A Review on Energy Efficiency Improvement methods for
Oil and Gas Industries
Energy Saving Opportunities and Related Techniques
There is a strong consensus within the oil and gas industry on the importance of saving
energy by improving the efficiency of its operations along the supply chain and eliminating
unnecessary waste [11]. A large variety of opportunities exist within petroleum refineries to
reduce energy consumption while maintaining or enhancing the productivity of the plant.
Studies by several companies in the petroleum refining have demonstrated the existence of
a substantial potential for energy efficiency improvement in almost all facilities. Major areas
for energy-efficiency improvement are utilities (30%), fired heaters (20%), process
optimization (15%), heat exchangers (15%), motor and motor applications (10%), and other
areas (10%) [7]. There are several innovation trends taking shape in the oil and gas industry
to address sustainable energy opportunities and these opportunities can be classified in
various categories [5, 6, 9, 11, 17]:
- Optimization of operating conditions, including improvement of rotating machines
operations
- Rerouting of flows actually sent to vent or flare
- Recovery of some flows such as blanketing gas on some equipment or flash drums vapors
- Better metering among the installation for a better follow up of consumptions
- Use of energy efficient turbines, pumps, and compressors
- Cogeneration of heat and power and installation of waste heat recovery units on turbines
exhaust gas that will increase the overall efficiency of the turbine by allowing the use of this
waste energy for heating purposes on the process
- Use of ultra-sonic flow meters on flares
- Dry gas seals on compressors
- More efficient exploration, through improved drilling success rates thanks to advances in
seismic surveying and analysis, and drilling techniques
- Reduced flaring and venting of associated gas, through investment in gas processing and
distribution. One of the sources which considerable energy waste occurs is gas flaring
associated with the production of oil. According to a World Bank report, about 150 billion
cubic meters (or 5.3 trillion cubic feet) of natural gas are being flared and vented annually
around the world. Efforts to reduce gas flaring in oil production are a measure to increase
energy efficiency, reduce carbon emissions, and potentially increase access for more people.
Flaring of this gas wastes a valuable clean energy resource that can be used to reduce
inefficiencies and increase energy access in many developing countries where much of the
oil is produced.
- Use of high pressure pipelines, which require less energy input per unit of oil or gas
transported per kilometer.
- Upgrading operating procedures in oil refining processes.
- Optimizing the distribution and use of steam and power generated on site
- Preventing leaks and spills
- Installing heat-recovery boilers and air preheating systems.
- The most advanced high-efficiency motors
- The creation of the new, fully optimized digital oil field with more sophisticated
information technology-using distributed sensors, high speed communication and data

2nd Conference on
Emerging Trends in Energy Conservation
A Review on Energy Efficiency Improvement methods for
Oil and Gas Industries
mining techniques to use real-time data to make better decisions and to get more barrels
out of each asset.
- Development of alternative and advanced fuels and renewable energy generation
technologies.
- Refinery furnace is the main energy conservation equipment, about 1/3 of the
comprehensive energy consumption of refinery conversion and consumption through the
furnace; thereby increasing refinery furnace thermal efficiency has become the main
measures tapping the potential synergies. Reduce heat losses can improve the thermal
efficiency. Exhaust gas loss accounts for a large proportion in furnace heat loss. When the
furnace thermal efficiency is high (e.g. 90%), exhaust gas loss accounts for 70% to 80% of
total loss, when the furnace thermal efficiency is low (e.g. 70%), the proportion of exhaust
gas loss in total loss reaches up to 90%. The heat recovery system consists of air pre-heater,
air blowers, flue gas inducted draft fan, an independent steel chimney and flue and duct. The
air pre-heater is placed on the basis of the furnace side of the ground. Its main advantage is
that the replacement and maintenance of the exchange is convenient and easily operated,
but the covers, steel maintenance and investment are more.
Conclusion
A literature survey of energy efficiency improvement methods for oil and gas industry
including energy management and energy saving tips was made. The review gives an
overview of the possible opportunities to reduce energy consumption in different sections of
an oil and gas industry. Applying a comprehensive management program can provide the
severity and regulations necessary to precede permanent improvement. A large number of
potential opportunities exist within petroleum refineries to decrease energy consumption
while maintaining or increasing the productivity of the plant. These available opportunities
are achievable in almost all facilities that have been demonstrated by many studies.
References
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2nd Conference on
Emerging Trends in Energy Conservation
A Review on Energy Efficiency Improvement methods for
Oil and Gas Industries
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