Oil Upgrading Value
In periods of pricing volatility, the cost to upgrade heavy-sour feedstocks becomes critical across all segments of the oil industry. Producers seek to enhance the value of extracted products. Refiners aim to reduce production costs by sourcing more affordable crude. Petrochemical manufacturers require cost-effective feedstocks that maintain product quality without increasing production costs.
Advancements in Upgrading Technologies
Historically, the range of available upgrading technologies has been limited to energy-intensive, hydrogen-based processes, which often result in high operational costs. FlexUP and FlexULS represent a shift toward more efficient and cost-effective methods. These technologies enable partial upgrading of a wide variety of hydrocarbon streams using air as the primary reactant, offering advantages that traditional hydrogen-based systems do not. Both are based on oxydesulfurization (ODS), a process that performs most effectively in areas where conventional hydrotreating becomes economically unfeasible, particularly in treating the heavier fractions of crude oil and sulfur-rich feeds requiring only mild polishing.
Applications Across the Oil Industry
For Crude Oil Producers
Upgrading technologies that use ODS principles enable partial improvement of heavy, sour crude oil. By removing sulfur, acidity, metals, and nitrogen, these processes can enhance the quality of the crude. The result is a potential increase in per-barrel value and overall liquid yield, which may support improved reserves classification and long-term valuation.
For Refiners
Refiners benefit from the ability to partially upgrade lower-value components such as vacuum gas oils, vacuum residuum, and atmospheric bottoms. Removal of heteroatom contaminants improves feedstock compatibility with existing refinery processes and reduces the intensity required in downstream units. This allows refiners to consider a broader range of crude qualities while maintaining operational efficiency.
Alternative sulfur- and nitrogen-removal processes can also reduce hydrogen and energy demand, particularly in light feeds that are sensitive to saturation. These include olefins, diolefins, and aromatics, which may degrade under traditional hydrogenation conditions.
For Petrochemical Manufacturers
Petrochemical operations often require cost-effective feedstocks that maintain high product quality. Selective desulfurization technologies enable the use of out-of-spec materials without compromising downstream performance. By removing sulfur and nitrogen without affecting olefins or aromatic compounds, lower-cost feeds can be utilized while preserving output standards.
Consistent Value in Changing Market Conditions
Advanced desulfurization and upgrading technologies continue to influence feedstock economics across all sectors of the oil industry. These processes offer practical options for increasing oil value and reducing costs, regardless of market conditions.