Unconventional
oil, irrespective of whether it is a bio-oil, coal
oil, petroleum oil, or waste oil, is an oil that is too viscous to
effectively transport in its native state. Processing of unconventional
oil to enable transport is imperative to get the oil to its primary
market, namely, petroleum refineries. What is the most profitable
amount of processing to meet the technical requirements for transport
and marketability of the oil product? The impact of oil composition
on petroleum refining is discussed in terms of refinery constraints
and petroleum economics. The constraints explored are distillation,
sulfur treatment capacity, hydrogen availability, and crack spread.
Using oilsand-derived bitumen as a case study, three different approaches
to deliver unconventional oil to the market are presented: dilution
without any upgrading, full upgrading by the combination of cracking
and hydroprocessing, and partial upgrading without the use of hydrogen.
The concept of partial upgrading assumes that there is an economical
optimum amount of processing between the two extremes of dilution
and full upgrading. Potential partial upgrading processes that are
reviewed are limited to the categories of visbreaking, coking, solvent
deasphalting, and olefin treating without hydrogen. Comparative material
balances, oil properties, capital costs, and utility requirements
are presented and discussed in the context of partial upgrading. The
study concludes that there is a limited prospect for single-step partial
upgrading processes to produce an oil with sufficiently reduced viscosity,
density, and olefin content to meet pipeline specifications without
a substantial yield loss. Cracking necessitates olefin treatment,
and process options for olefin treatment without hydrogen are less
well developed than olefin treatment with hydrogen. While not concluding
that multistep processes cannot meet the dual objectives of increasing
profitability and transport requirements, it is pointed out that increasing
complexity erodes the economic incentive by which partial upgrading
is justified.