SEARCH · Search NASA
Results for “PETROLEUM INDUSTRY”
Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.
Quote a phrase for an exact phrase match. Source license links do not imply unrestricted reuse.
Treatment and Reuse of Wastewaters Discharged by Petroleum Industries (HMD/Algeria)
Industrial wastewaters discharged by petroleum industries contains: oil, heavy metals and chemicals used in the process of oil separation and treatment. These waters are a source of soil, water and air pollution, and lead a mortal danger to the ecosystem. Our aim in this work has an aspect that can contribute to the collective effort to address the enormous amount of water purges storage bins and reuse them to avoid any environmental damage. This was achieved by chemical treating of these wastewaters discharged from three different locations of Hassi Messaoud (HMD) petroleum field by flocculation with (C-5563) followed by coagulation with (C-2061) using two different acids as sequestering namely: Ascorbic and Citric acid. After experiments, the results showed that the wastewater can be treated without sequestering by adding 40 ppm of activated silicates. The best result was obtained by addition of 160 ppm of Ascorbic acid as sequestering agent and 20 ppm of activated silicates; resulting in removal of 92.81 % of suspended matter and 95.53 % of turbidity. Finally we concluded that this wastewater was satisfactorily treated and we recommend either inject it for enhanced oil recovery in industrial closest field (North field) to maintain the reservoir pressure and the improved rate recovery of oil reserves or reuse it in garden irrigation. In order to see the impact of the treated water on plants, irrigation tests have conducted on two types of plants (date palm and shaft apocalyptic) for one year. The tests showed that the thick layer of 5 cm and 0.08mm of particles diameter of dune sand removes most of remaining oil. The sand layer that fills the basin surrounding the shaft is removed and replaced every 06 months. So, Dune sand plays the role of natural filter. The garden plants appear and grow normally.
Oil & Natural Gas Technology A new approach to understanding the occurrence and volume of natural gas hydrate in the northern Gulf of Mexico using petroleum industry well logs
The northern Gulf of Mexico has been the target for the petroleum industry for exploration of conventional energy resource for decades. We have used the rich existing petroleum industry well logs to find the occurrences of natural gas hydrate in the northern Gulf of Mexico. We have identified 798 wells with well log data within the gas hydrate stability zone. Out of those 798 wells, we have found evidence of gas hydrate in well logs in 124 wells (15% of wells). We have built a dataset of gas hydrate providing information such as location, interval of hydrate occurrence (if any) and the overall quality of probable gas hydrate. Our dataset provides a wide, new perspective on the overall distribution of gas hydrate in the northern Gulf of Mexico and will be the key to future gas hydrate research and prospecting in the area.
Efficiency improvement and CO 2 emission reduction potentials in the United States petroleum refining industry
The U.S. EPA is in the final stages of promulgating regulations to reduce CO 2 emissions from the electricity generating industry. A major component of EPA's regulatory strategy targets improvements to power plant operating efficiencies. As the EPA expands regulatory requirements to other industries, including petroleum refining, it is likely that plant efficiency improvements will be critical to achieving CO 2 emission reductions. This paper identifies efficiency improvement measures applicable to refining, and quantifies potential cost of conserved energy for these measures. Analysis is at the U.S. petroleum refining sector national-level employing an aggregated notional refinery model (NRM), with the aim of estimating the efficacy of efficiency improvements for reducing emissions. Using this method, roughly 1500 petajoules per year (PJ/yr) of plant fuel savings and 650 gigawatt-hour per year (GWh/yr) of electricity savings (representing 54% and 2% of U.S. refining industry consumption, respectively) are potentially cost-effective. This equates to a potential 85 Mt-CO 2 /yr reduction. An additional 458 PJ/yr fuel reduction and close to 2750 GWh/yr of electricity reduction (27 Mt-CO 2 /yr) are not cost-effective at prevailing natural gas market prices. Furthermore, results are presented as a supply-curve ordering measures from low to high cost of fuel savings versus cumulative energy reduction.
Advanced Energy and Water Recovery Technology from Low Grade Waste Heat
The project has developed a nanoporous membrane based water vapor separation technology that can be used for recovering energy and water from low-temperature industrial waste gas streams with high moisture contents. This kind of exhaust stream is widely present in many industrial processes including the forest products and paper industry, food industry, chemical industry, cement industry, metal industry, and petroleum industry. The technology can recover not only the sensible heat but also high-purity water along with its considerable latent heat. Waste heats from such streams are considered very difficult to recover by conventional technology because of poor heat transfer performance of heat-exchanger type equipment at low temperature and moisture-related corrosion issues. During the one-year Concept Definition stage of the project, the goal was to prove the concept and technology in the laboratory and identify any issues that need to be addressed in future development of this technology. In this project, computational modeling and simulation have been conducted to investigate the performance of a nanoporous material based technology, transport membrane condenser (TMC), for waste heat and water recovery from low grade industrial flue gases. A series of theoretical and computational analyses have provided insight and support in advanced TMC design and experiments. Experimental study revealed condensation and convection through the porous membrane bundle was greatly improved over an impermeable tube bundle, because of the membrane capillary condensation mechanism and the continuous evacuation of the condensate film or droplets through the membrane pores. Convection Nusselt number in flue gas side for the porous membrane tube bundle is 50% to 80% higher than those for the impermeable stainless steel tube bundle. The condensation rates for the porous membrane tube bundle also increase 60% to 80%. Parametric study for the porous membrane tube bundle heat transfer performance was also done, which shows this heat transfer enhancement approach works well in a wide parameters range for typical flue gas conditions. Better understanding of condensing heat transfer mechanism for porous membrane heat transfer surfaces, shows higher condensation and heat transfer rates than non-permeable tubes, due to existence of the porous membrane walls. Laboratory testing has documented increased TMC performance with increased exhaust gas moisture content levels, which has exponentially increased potential markets for the product. The TMC technology can uniquely enhance waste heat recovery in tandem with water vapor recovery for many other industrial processes such as drying, wet and dry scrubber exhaust gases, dewatering, and water chilling. A new metallic substrate membrane tube development and molded TMC part fabrication method, provides an economical way to expand this technology for scaled up applications with less than 3 year payback expectation. A detailed market study shows a broad application area for this advanced waste heat and water recovery technology. A commercialization partner has been lined up to expand this technology to this big market. This research work led to new findings on the TMC working mechanism to improve its performance, better scale up design approaches, and economical part fabrication methods. Field evaluation work needs to be done to verify the TMC real world performance, and get acceptance from the industry, and pave the way for our commercial partner to put it into a much larger waste heat and waste water recovery market. This project is addressing the priority areas specified for DOE Industrial Technologies Program's (ITP's): Energy Intensive Processes (EIP) Portfolio - Waste Heat Minimization and Recovery platform.
The process heat applications of HTGR in petroleum refining industry: adaptability and economy - 18425
High Temperature Gas Cooled Reactor (HTGR) is considered as a kind of potential heat producer for industry. Since the industrial heat utilization takes 60% of heat supply in China, the process heat of HTGR is more suitable for industrial manufacturing as high temperature heat source. In this article, the adaptabilities of HTGR for heat supply to petroleum refining industry are analyzed and it is found that the joint of process heat of HTGR and chemical industry is most predictable in the near future. For case study, technical and economic analysis of process heat-supply proposal in a typical refinery in China is finished and it is shown that though there is some technical and conceptual challenge, the application of process heat of HTGR in petroleum refining industry is feasible and competitive in economics. (authors)
Advanced Energy and Water Recovery Technology from Low Grade Waste Heat
The project has developed a nanoporous membrane based water vapor separation technology that can be used for recovering energy and water from low-temperature industrial waste gas streams with high moisture contents. This kind of exhaust stream is widely present in many industrial processes including the forest products and paper industry, food industry, chemical industry, cement industry, metal industry, and petroleum industry. The technology can recover not only the sensible heat but also high-purity water along with its considerable latent heat. Waste heats from such streams are considered very difficult to recover by conventional technology because of poor heat transfer performance of heat-exchanger type equipment at low temperature and moisture-related corrosion issues. During the one-year Concept Definition stage of the project, the goal was to prove the concept and technology in the laboratory and identify any issues that need to be addressed in future development of this technology. In this project, computational modeling and simulation have been conducted to investigate the performance of a nanoporous material based technology, transport membrane condenser (TMC), for waste heat and water recovery from low grade industrial flue gases. A series of theoretical and computational analyses have provided insight and support in advanced TMC design and experiments. Experimental study revealed condensation and convection through the porous membrane bundle was greatly improved over an impermeable tube bundle, because of the membrane capillary condensation mechanism and the continuous evacuation of the condensate film or droplets through the membrane pores. Convection Nusselt number in flue gas side for the porous membrane tube bundle is 50% to 80% higher than those for the impermeable stainless steel tube bundle. The condensation rates for the porous membrane tube bundle also increase 60% to 80%. Parametric study for the porous membrane tube bundle heat transfer performance was also done, which shows this heat transfer enhancement approach works well in a wide parameters range for typical flue gas conditions. Better understanding of condensing heat transfer mechanism for porous membrane heat transfer surfaces, shows higher condensation and heat transfer rates than non-permeable tubes, due to existence of the porous membrane walls. Laboratory testing has documented increased TMC performance with increased exhaust gas moisture content levels, which has exponentially increased potential markets for the product. The TMC technology can uniquely enhance waste heat recovery in tandem with water vapor recovery for many other industrial processes such as drying, wet and dry scrubber exhaust gases, dewatering, and water chilling. A new metallic substrate membrane tube development and molded TMC part fabrication method, provides an economical way to expand this technology for scaled up applications with less than 3 year payback expectation. A detailed market study shows a broad application area for this advanced waste heat and water recovery technology. A commercialization partner has been lined up to expand this technology to this big market. This research work led to new findings on the TMC working mechanism to improve its performance, better scale up design approaches, and economical part fabrication methods. Field evaluation work needs to be done to verify the TMC real world performance, and get acceptance from the industry, and pave the way for our commercial partner to put it into a much larger waste heat and waste water recovery market. This project is addressing the priority areas specified for DOE Industrial Technologies Program's (ITP's): Energy Intensive Processes (EIP) Portfolio - Waste Heat Minimization and Recovery platform.
Application of Horizontal Well Completion Techniques to Enhanced Geothermal Systems: Final Report October 2015 - September 2016
The petroleum industry has had success in developing unconventional shale plays using horizontal drilling and multi-zonal isolation and stimulation techniques to fracture tight formations, thus enabling the commercial production of oil and gas. Wellbore similarity exists with enhanced geothermal system (EGS) proposals. The technologies and techniques from the petroleum industry are being stretched to accommodate the higher temperatures, high water flow rates, and large-diameter completions encountered in geothermal settings. In this study, we assess whether well completion techniques used in the unconventional shale industry to create multi-stage fractures can be applied to an enhanced geothermal system, focusing on the fracture construction and completion of the EGS production well. We reviewed technologies used in these systems to determine if commercially available equipment from the petroleum industry could be used at the temperatures, pressures, and sizes encountered in geothermal settings. Our study found no major technical barriers to employing shale gas multi-zonal completion techniques in a horizontal well in a geothermal setting for EGS development. Temperature limitations of equipment are a concern for all techniques considered. Equipment designed to operate at high temperatures encountered in geothermal systems is commercially available, but is generally unproven for geothermal applications. Based on our study, further evaluation is warranted on adapting oil and gas completion techniques to EGS. This project is a continuation of the FY14 Horizontal Geothermal Completion project sponsored by the U.S. Department of Energy through the National Renewable Energy Laboratory and the Colorado School of Mines.
Downhole Sensors in Drilling Operations
Before downhole and surface equipment became mainstream, drillers had little way of knowing where they were or the conditions of the well. Eventually, breakthroughs in technology such as Measurement While Drilling (MWD) devices and the Electronic Drilling Recorder system allowed for more accurate and increased data collection. More modern initiatives that approach drilling as manufacturing such as Lean Drilling, Drilling the Limit, and revitalized Drilling the Limit programs have allowed petroleum drilling operations to become more efficient in the design and creation of a well, increasing rates of penetration by more than 50%. Unfortunately, temperature and cost limitations of these tools have prevented geothermal operations from using this state-of-the-art equipment in most wells. Today, petroleum drilling operations can collect surface measurements on key drilling data such as rotary torque, hook load (for surface weight on bit), rotary speed, block height (for rate of penetration), mud pressure, pit volume, and pump strokes (for flowrates). They also can collect downhole measurements of azimuth, inclination, temperature, pressure, revolutions per minute, downhole torque on bit, downhole weight on bit, downhole vibration, and bending moment using an MWD device (although not necessarily in real time). These data can be used to calculate and minimize mechanical specific energy, which is the energy input required to remove a unit volume of rock. In geothermal operations, these data are not always used due to poor accuracy or lack of equipment. This is one of the major hurdles for geothermal well construction and a reason why geothermal drilling operations take much longer than their petroleum counterparts. This paper reviews the surface and downhole data collection equipment used in the petroleum industry and its associated costs, capabilities, limitations, and impacts. The impact these downhole tools and measurements have had on increasing drilling efficiency for the petroleum industry suggests that developing these tools for high-temperature, high-pressure environments could be similarly impactful for the geothermal industry.
Scoping Study on Developing Alternatives to Radionuclide-based Logging Technologies
Subsurface devices utilizing radioisotopes, 241 Am and 137 Cs, are critical for reservoir characterization and related completion and production decisions. Being small, mobile and used widely worldwide, these sources can pose radiological dispersal device (RDD) security risks. The security concerns have been exacerbated by recent stolen or missing source incidents, existence of a black-market on sources in general, and attempts at their malevolent use. Consequently, in addition to decades-long industry effort to develop non-nuclear and nuclear-based alternative logging technologies, governments, international agencies, and national labs are actively assessing measures and technologies to mitigate risks of such sources. Risk mitigation efforts include enhanced regulations, source-use guidelines, research and development on electronic tracking of sources, and continued exploration of alternative technologies by both the petroleum industry and U S Department of Energy (DOE). In recent years, the petroleum industry has continued to explore new nuclear-based and nonnuclear alternative techniques and several DOE-sponsored reports have been prepared on the topic. However, there has been no significant synergy between the industry and DOE efforts in developing alternatives.
Assessment of Energy Efficiency Improvement in the United States Petroleum Refining Industry
Adoption of efficient process technologies is an important approach to reducing CO 2 emissions, in particular those associated with combustion. In many cases, implementing energy efficiency measures is among the most cost-effective approaches that any refiner can take, improving productivity while reducing emissions. Therefore, careful analysis of the options and costs associated with efficiency measures is required to establish sound carbon policies addressing global climate change, and is the primary focus of LBNL’s current petroleum refining sector analysis for the U.S. Environmental Protection Agency. The analysis is aimed at identifying energy efficiency-related measures and developing energy abatement supply curves and CO 2 emissions reduction potential for the U.S. refining industry. A refinery model has been developed for this purpose that is a notional aggregation of the U.S. petroleum refining sector. It consists of twelve processing units and account s for the additional energy requirements from steam generation, hydrogen production and water utilities required by each of the twelve processing units. The model is carbon and energy balanced such that crud e oil inputs and major refinery sector outputs (fuels) are benchmarked to 2010 data. Estimates of the current penetration for the identified energy efficiency measures benchmark the energy requirements to those reported in U.S. DOE 2010 data. The remaining energy efficiency potential for each of the measures is estimated and compared to U.S. DOE fuel prices resulting in estimates of cost- effective energy efficiency opportunities for each of the twelve major processes. A combined cost of conserved energy supply curve is also presented along with the CO 2 emissions abatement opportunities that exist in the U.S. petroleum refinery sector. Roughly 1,200 PJ per year of primary fuels savings and close to 500 GWh per y ear of electricity savings are potentially cost-effective given U.S. DOE fuel price forecasts. This represents roughly 70 million metric tonnes of CO 2 emission reductions assuming 2010 emissions factor for grid electricity. Energy efficiency measures resulting in an additional 400 PJ per year of primary fuels savings and close to 1,700 GWh per year of electricity savings, and an associated 24 million metric tonnes of CO 2 emission reductions are not cost-effective given the same assumption with respect to fuel prices and electricity emissions factors. Compared to the modeled energy requirements for the U.S. petroleum refining sector, the cost effective potential represents a 40% reduction in fuel consumption and a 2% reduction in electricity consumption. The non-cost-effective potential represents an additional 13% reduction in fuel consumption and an additional 7% reduction in electricity consumption. The relative energy reduction potentials are mu ch higher for fuel consumption than electricity consumption largely in part because fuel is the primary energy consumption type in the refineries. Moreover, many cost effective fuel savings measures would increase electricity consumption. The model also has the potential to be used to examine the costs and benefits of the other CO 2 mitigation options, such as combined heat and power (CHP), carbon capture, and the potential introduction of biomass feedstocks. However, these options are not addressed in this report as this report is focused on developing the modeling methodology and assessing fuels savings measures. These opportunities to further reduce refinery sector CO 2 emissions and are recommended for further research and analysis.
Snake River Plain Play Fairway Analysis – Phase 1 Report
The Snake River volcanic province (SRP) overlies a thermal anomaly that extends deep into the mantle; it represents one of the highest heat flow provinces in North America. Our goals for this Phase 1 study are to: (1) adapt the methodology of Play Fairway Analysis for geothermal exploration to create a formal basis for its application to geothermal systems, (2) assemble relevant data for the SRP from publicly available and private sources, and (3) build a geothermal play fairway model for the SRP and identify the most promising plays, using software tools that are standard in the petroleum industry. The success of play fairway analysis in geothermal exploration depends critically on defining a systematic methodology that is grounded in theory (as developed within the petroleum industry over the last two decades) and within the geologic and hydrologic framework of real geothermal systems. Our preliminary assessment of the data suggests that important undiscovered geothermal resources may be located in several areas of the SRP, including the western SRP (associated with buried lineaments defined by gravity or magnetic anomalies, and capped by extensive deposits of lacustrine sediment), at lineament intersections in the central SRP (along the Banbury-Hagerman trend NW of Twin Falls, and along the northern margin of the Mt Bennett Hills-Camas Prairie area), and along the margins of the eastern SRP. Additional high temperature resources are likely associated with rhyolite domes and crypto-domes in the eastern SRP, but are masked by shallow groundwater flow leading to low upper crustal heat flow values. These blind resources may be exploitable with existing deep drilling technology. Groundwater modeling planned for later phases of the PFA project will address whether temperatures at viable producing depths are sufficient to support electricity production.
Snake River Plain Play Fairway Analysis - Phase 1 Report
The Snake River volcanic province (SRP) overlies a thermal anomaly that extends deep into the mantle; it represents one of the highest heat flow provinces in North America. Our goals for this Phase 1 study are to: (1) adapt the methodology of Play Fairway Analysis for geothermal exploration to create a formal basis for its application to geothermal systems, (2) assemble relevant data for the SRP from publicly available and private sources, and (3) build a geothermal play fairway model for the SRP and identify the most promising plays, using software tools that are standard in the petroleum industry. The success of play fairway analysis in geothermal exploration depends critically on defining a systematic methodology that is grounded in theory (as developed within the petroleum industry over the last two decades) and within the geologic and hydrologic framework of real geothermal systems. Our preliminary assessment of the data suggests that important undiscovered geothermal resources may be located in several areas of the SRP, including the western SRP (associated with buried lineaments defined by gravity or magnetic anomalies, and capped by extensive deposits of lacustrine sediment), at lineament intersections in the central SRP (along the Banbury-Hagerman trend NW of Twin Falls, and along the northern margin of the Mt Bennett Hills-Camas Prairie area), and along the margins of the eastern SRP. Additional high temperature resources are likely associated with rhyolite domes and crypto-domes in the eastern SRP, but are masked by shallow groundwater flow leading to low upper crustal heat flow values. These blind resources may be exploitable with existing deep drilling technology. Groundwater modeling planned for later phases of the PFA project will address whether temperatures at viable producing depths are sufficient to support electricity production.
Geomechanical risk assessment for subsurface fluid disposal operations
Numerical models are commonly used to estimate the state of stress in the subsurface for various engineering applications. These estimates are subject to considerable uncertainty, and yet, the estimates are almost always deterministic, yielding no information about the certainty of the prediction. For some applications, unquantified uncertainties in stress are often acceptable, because the risks related to geomechanics may be of low relative importance compared to other risks (e.g. recoverable resource volume), for which uncertainties are often quantified. Furthermore, many geomechanics-related risks in the petroleum industry are relatively short lived (e.g. well bore stability), and decrease in importance with time. In contrast, for waste water injection or geologic carbon sequestration (GCS), geomechanics-related risks (e.g. seal integrity, induced seismicity) are on par with resource-related risks and are of long-term concern, with the risk generally increasing in importance for a significant period of time. For these reasons, the deterministic stress estimation and risk analysis approaches generally applied in the petroleum industry are insufficient for GCS applications. This paper describes a Bayesian approach to geomechanical uncertainty quantification and risk assessment. The method is demonstrated using data from an active enhanced oil recover/geologic carbon sequestration field as a case study
Aliphatic Amines from Waste Polyolefins by Tandem Pyrolysis, Hydroformylation, and Reductive Amination
Pyrolysis of waste plastics can produce a product mixture with a high concentration of olefins (>50 wt%). The olefins, as building blocks in the petroleum industry, are potential precursors for valuable commodity chemicals with higher values (>$2000 per ton). In this work, we produce aldehydes by hydroformylation of the olefins present in pyrolysis oil from colored post-consumer recycled high-density polyethylene (PCR-HDPE). The obtained aldehydes in the oil are then converted into aliphatic amines via reductive amination with a Ru/C catalyst. The aminated oil was characterized by multiple analytical chemistry techniques including elemental analysis, nuclear magnetic resonance spectroscopy, high-resolution liquid chromatography-mass spectrometry, and gas chromatography-mass spectrometry with a Polyarc flame ionization detector. The concentration of metals in the PCR-HDPE and oil changes during the tandem processes, showing limited effects of these elements (e.g., Al, Ca, Fe, Mg, Ti, Zn) on hydroformylation and reductive amination. Additionally, we demonstrated that reductive amination of aldehydes with varied carbon numbers and branching properties can be achieved in the presence of a complex mixture, including paraffins and aromatics. The results indicate that waste plastics have the potential to serve as a renewable source for mono and di aliphatic amines, thereby diminishing reliance on fossil feedstocks as the current primary amine source.
A preliminary sub-basin scale evaluation framework of site suitability for onshore aquifer-based CO2 storage in China
Development of a reliable, broadly applicable framework for the identification and suitability evaluation of potential CO2 storage sites is essential before large scale deployment of carbon dioxide capture and geological storage (CCS) can commence. In this study, a sub-basin scale evaluation framework was developed to assess the suitability of potential onshore deep saline aquifers for CO2 storage in China. The methodology, developed in consultation with experts from the academia and the petroleum industry in China, is based on a multi-criteria analysis (MCA) framework that considers four objectives: (1) storage optimization, in terms of storage capacity and injectivity; (2) risk minimization and storage security; (3) environmental restrictions regarding surface and subsurface use; and (4) economic considerations. The framework is designed to provide insights into both the suitability of potential aquifer storage sites as well as the priority for early deployment of CCS with existing CO2 sources. Preliminary application of the framework, conducted using GIS-based evaluation tools revealed that 18% of onshore aquifer sites with a combined CO2 storage capacity of 746 gigatons are considered to exhibit very high suitability, and 11% of onshore aquifer sites with a total capacity of 290 gigatons exhibit very high priority opportunities for implementation. These onshore aquifer sites may provide promising opportunities for early large-scale CCS deployment and contribute to CO2 mitigation in China for many decades.
Decoding how a soil bacterium extracts building blocks and metabolic energy from ligninolysis provides road map for lignin valorization
Significance Lignin is the only renewable and abundant polymer on the earth with aromatic units as its building blocks; however, it remains as an untapped resource. The current approach to making the biofuel industry cost competitive with the petroleum industry is to derive more value from the lignin. In this study we combined the unique approaches of both chemical engineering and biology to gain a deeper understanding of the metabolism of a soil bacterium, Sphingobium sp. SYK-6, that enables it to survive on lignin-derived monomers and oligomers. Understanding the central metabolism of SYK-6 will enable researchers to redesign the metabolic pathways of Sphingobium sp. SYK-6 more effectively to provide a renewable route for the production of products currently sourced from petrochemicals.
North Dakota Refining Capacity Study
According to a 2008 report issued by the United States Geological Survey, North Dakota and Montana have an estimated 3.0 to 4.3 billion barrels of undiscovered, technically recoverable oil in an area known as the Bakken Formation. With the size and remoteness of the discovery, the question became 'can a business case be made for increasing refining capacity in North Dakota?' And, if so what is the impact to existing players in the region. To answer the question, a study committee comprised of leaders in the region's petroleum industry were brought together to define the scope of the study, hire a consulting firm and oversee the study. The study committee met frequently to provide input on the findings and modify the course of the study, as needed. The study concluded that the Petroleum Area Defense District II (PADD II) has an oversupply of gasoline. With that in mind, a niche market, naphtha, was identified. Naphtha is used as a diluent used for pipelining the bitumen (heavy crude) from Canada to crude markets. The study predicted there will continue to be an increase in the demand for naphtha through 2030. The study estimated the optimal configuration for the refinery at 34,000 barrels per day (BPD) producing 15,000 BPD of naphtha and a 52 percent refinery charge for jet and diesel yield. The financial modeling assumed the sponsor of a refinery would invest its own capital to pay for construction costs. With this assumption, the internal rate of return is 9.2 percent which is not sufficient to attract traditional investment given the risk factor of the project. With that in mind, those interested in pursuing this niche market will need to identify incentives to improve the rate of return.