Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where petroleum is transformed and refined into products such as gasoline, diesel fuel, asphalt base, fuel oils, heating oil, kerosene, liquefied petroleum gas and petroleum naphtha. Petrochemical feedstock like ethylene and propylene can also be produced directly by cracking crude oil without the need of using refined products of crude oil such as naphtha. The crude oil feedstock has typically been processed by an oil production plant. There is usually an oil depot at or near an oil refinery for the storage of incoming crude oil feedstock as well as bulk liquid products. In 2020, the total capacity of global refineries for crude oil was about 101.2 million barrels per day.
Oil refineries are typically large, sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units, such as distillation columns. In many ways, oil refineries use many different technologies and can be thought of as types of chemical plants. Since December 2008, the world's largest oil refinery has been the Jamnagar Refinery owned by Reliance Industries, located in Gujarat, India, with a processing capacity of per day.
Oil refineries are an essential part of the petroleum industry's downstream sector.
History
The Chinese were among the first civilizations to refine oil. As early as the first century, the Chinese were refining crude oil for use as an energy source. Between 512 and 518, in the late Northern Wei dynasty, the Chinese geographer, writer and politician Li Daoyuan introduced the process of refining oil into various lubricants in his famous work Commentary on the Water Classic.Crude oil was often distilled by Persian chemists, with clear descriptions given in handbooks such as those of Muhammad ibn Zakarīya Rāzi. The streets of Baghdad were paved with tar, derived from petroleum that became accessible from natural fields in the region. In the 9th century, oil fields were exploited in the area around modern Baku, Azerbaijan. These fields were described by the Arab geographer Abu al-Hasan 'Alī al-Mas'ūdī in the 10th century, and by Marco Polo in the 13th century, who described the output of those wells as hundreds of shiploads. Arab and Persian chemists also distilled crude oil in order to produce flammable products for military purposes. Through Islamic Spain, distillation became available in Western Europe by the 12th century.
In the Northern Song dynasty, a workshop called the "Fierce Oil Workshop", was established in the city of Kaifeng to produce refined oil for the Song military as a weapon. The troops would then fill iron cans with refined oil and throw them toward the enemy troops, causing a fire – effectively the world's first "fire bomb". The workshop was one of the world's earliest oil refining factories where thousands of people worked to produce Chinese oil-powered weaponry.
Prior to the nineteenth century, petroleum was known and utilized in various fashions in Babylon, Egypt, China, Philippines, Rome and Azerbaijan. However, the modern history of the petroleum industry is said to have begun in 1846 when Abraham Gessner of Nova Scotia, Canada devised a process to produce kerosene from coal. Shortly thereafter, in 1854, Ignacy Łukasiewicz began producing kerosene from hand-dug oil wells near the town of Krosno, Poland.
Romania was registered as the first country in world oil production statistics, according to the .
In North America, the first oil well was drilled in 1858 by James Miller Williams in Oil Springs, Ontario, Canada. In the United States, the petroleum industry began in 1859 when Edwin Drake found oil near Titusville, Pennsylvania. The industry grew slowly in the 1800s, primarily producing kerosene for oil lamps. In the early twentieth century, the introduction of the internal combustion engine and its use in automobiles created a market for gasoline that was the impetus for fairly rapid growth of the petroleum industry. The early finds of petroleum like those in Ontario and Pennsylvania were soon outstripped by large oil "booms" in Oklahoma, Texas and California.
Samuel Kier established America's first oil refinery in Pittsburgh on Seventh Avenue near Grant Street, in 1853. Polish pharmacist and inventor Ignacy Łukasiewicz established an oil refinery in Jasło, then part of the Austro-Hungarian Empire in 1854.
The first large refinery opened at Ploiești, Romania, in 1856–1857.
It was in Ploiesti that, 51 years later, in 1908, Lazăr Edeleanu, a Romanian chemist of Jewish origin who got his PhD in 1887 by discovering amphetamine, invented, patented and tested on industrial scale the first modern method of liquid extraction for refining crude oil, the Edeleanu process. This increased the refining efficiency compared to pure fractional distillation and allowed a massive development of the refining plants. Successively, the process was implemented in France, Germany, U.S. and in a few decades became worldwide spread. In 1910 Edeleanu founded "Allgemeine Gesellschaft für Chemische Industrie" in Germany, which, given the success of the name, changed to Edeleanu GmbH, in 1930. During Nazi's time, the company was bought by the Deutsche Erdöl-AG and Edeleanu, being of Jewish origin, moved back to Romania. After the war, the trademark was used by the successor company EDELEANU Gesellschaft mbH Alzenau for many petroleum products, while the company was lately integrated as EDL in the Pörner Group.
The Ploiești refineries, after being taken over by Nazi Germany, were bombed in the 1943 Operation Tidal Wave by the Allies, during the Oil Campaign of World War II.
Another close contender for the title of hosting the world's oldest oil refinery is Salzbergen in Lower Saxony, Germany. Salzbergen's refinery was opened in 1860.
At one point, the refinery in Ras Tanura, Saudi Arabia owned by Saudi Aramco was claimed to be the largest oil refinery in the world. For most of the 20th century, the largest refinery was the Abadan Refinery in Iran. This refinery suffered extensive damage during the Iran–Iraq War. Since 25 December 2008, the world's largest refinery complex is the Jamnagar Refinery Complex, consisting of two refineries side by side operated by Reliance Industries Limited in Jamnagar, India with a combined production capacity of, and SK Energy's Ulsan in South Korea with. PDVSA's Paraguaná Refinery Complex in Paraguaná Peninsula, Venezuela, with a theoretical refining capacity of could be into the second place, but its effective run rates have been dramatically lower and publicly unaccounted, after Chavismo nationalized Venezuelan oil production, significantly decreasing its productivity.
Prior to World War II in the early 1940s, most petroleum refineries in the United States consisted simply of crude oil distillation units. Some refineries also had vacuum distillation units as well as thermal cracking units such as visbreakers. All of the many other refining processes discussed below were developed during the war or within a few years after the war. They became commercially available within 5 to 10 years after the war ended and the worldwide petroleum industry experienced very rapid growth. The driving force for that growth in technology and in the number and size of refineries worldwide was the growing demand for automotive gasoline and aircraft fuel.
In the United States, for various complex economic and political reasons, the construction of new refineries came to a virtual stop in about the 1980s. However, many of the existing refineries in the United States have revamped many of their units and/or constructed add-on units in order to: increase their crude oil processing capacity, increase the octane rating of their product gasoline, lower the sulfur content of their diesel fuel and home heating fuels to comply with environmental regulations and comply with environmental air pollution and water pollution requirements.File:ExxonMobil Baton Rouge.jpg|thumb|center|upright=2.75|Baton Rouge Refinery
United States
In the 19th century, refineries in the U.S. processed crude oil primarily to recover the kerosene. There was no market for the more volatile fraction, including gasoline, which was considered waste and was often dumped directly into the nearest river. The invention of the automobile shifted demand to gasoline and diesel, which remain the primary refined products today.Today, national and state legislation require refineries to meet stringent air and water cleanliness standards. In fact, oil companies in the U.S. perceive obtaining a permit to build a modern refinery to be so difficult and costly that no new refineries were built in the U.S. from 1976 until 2014 when the small Dakota Prairie Refinery in North Dakota began operation. More than half the refineries that existed in 1981 are now closed due to low utilization rates and accelerating mergers. As a result of these closures total US refinery capacity fell between 1981 and 1995, though the operating capacity stayed fairly constant in that time period at around. Increases in facility size and improvements in efficiencies have offset much of the lost physical capacity of the industry. In 1982, the United States operated 301 refineries with a combined capacity of of crude oil each calendar day. In 2010, there were 149 operable U.S. refineries with a combined capacity of per calendar day. By 2014 the number of refineries had decreased to 140 but the total capacity increased to per calendar day. Indeed, in order to reduce operating costs and depreciation, refining is operated in fewer sites but of bigger capacity.
In 2009 through 2010, as revenue streams in the oil business dried up and profitability of oil refineries fell due to lower demand for product and high reserves of supply preceding the economic recession, oil companies began to close or sell the less profitable refineries.