API Liquid Hydrocarbon Measurement Standards Update

David Johnson, Senior Business Analyst - Enterprise Upstream VolumesNovember 2, 2010

API Liquid Hydrocarbon Measurement Standards Update

2 11/02/2010

DisclaimerThe following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for P2 Energy Solutions’ products remain at the sole discretion of P2 Energy Solutions.

API Liquid Hydrocarbon Measurement Standards Update

API 11.1 and 11.2 - Liquid Hydrocarbon Volume Correction Factors

API Liquid Hydrocarbon Measurement Standards Update

4 11/02/2010

Learning Objectives• Review the physical principles underlying EU liquid

hydrocarbon volume correction factor computations API gravity correction for temperature CTL - volume correction for temperature CPL - volume correction for pressure CTPL - combined correction for temperature and pressure

• Understand API 11.1 / 11.2 volume correction factor terminology

• Review API 11.1 - 2004 changes vs. API 11.1 - 1980• Perform Enterprise Upstream (EU) form operations and

computations - tank inventories, run tickets, oil meter readings

API Liquid Hydrocarbon Measurement Standards Update

5 11/02/2010

Liquid Hydrocarbon Volume Correction Factors

• Observed (sample) conditions• Standard conditions (60°F, 1 atm)• Liquid (stock tank) conditions• EU first corrects API gravity from observed

(sample) conditions to standard conditions• Volume correction factor is then computed based

on liquid (stock tank) conditions

API Liquid Hydrocarbon Measurement Standards Update

6 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

7 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

8 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

9 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

10 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

11 11/02/2010

Liquid Hydrocarbon Volume Correction Factors

API Liquid Hydrocarbon Measurement Standards Update

12 11/02/2010

API 11.1 - 2004 summary of changes

• Increased supported range of API gravity and liquid temperature API gravity range -10 to 100°API (was 0 to 100°API) Temperature range -58 to 302°F (was 0 to 300°F) Pressure range unchanged at 0 to 1500 psi

• Standard density of water 999.016 kg/m3 (was 999.012 kg/m3)

• ITS-90 temperature scale (was ITS-68 temp scale)• VCF rounding is now 5 digits globally• Floating point mathematics instead of integer (fixed-point)

mathematics

API Liquid Hydrocarbon Measurement Standards Update

API 12.1.1 - CTSh correction / FRA adjustment

API Liquid Hydrocarbon Measurement Standards Update

14 11/02/2010

Learning Objectives• Review the underlying physical principles of the

CTSh correction and the FRA adjustment• Learn how to perform EU tank details setup

necessary for EU to apply the CTSh correction and the FRA adjustment

• Demonstrate how EU tank inventories and run tickets forms use CTSh and FRA within liquid hydrocarbon volume computations

API Liquid Hydrocarbon Measurement Standards Update

15 11/02/2010

Physical Principles and Nomenclature

• NSV = {[(TOV – FW) * CTSh] + FRA} * CTL * BSW NSV - net standard liquid volume (60 degF, 1 atm) TOV - total observed volume (tank top gauge) FW - free water (tank bottoms) CTSh - tank steel shell temperature correction factor FRA - floating roof displacement adjustment CTL - volume correction factor due to temperature BSW - basic sediment and water (%)

API Liquid Hydrocarbon Measurement Standards Update

16 11/02/2010

CTSh correction factor• CTSh is the correction factor for the effect of the

temperature, both ambient and liquid, on the shell of the tank

• CTSh = 1 + 2aΔT + a2ΔT2

a - coefficient of thermal expansion per steel type• ΔT = Tsh - Tb

Tsh - temperature of tank shell Tb - base temperature (60 degF)

• Tsh = (7*Tl + Ta) / 8 (non-insulated tanks) Tl - tank liquid temperature Ta - ambient temperature

API Liquid Hydrocarbon Measurement Standards Update

17 11/02/2010

CTSh - tank details setup

API Liquid Hydrocarbon Measurement Standards Update

18 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

19 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

20 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

21 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

22 11/02/2010

FRA adjustment

• NSV = {[(TOV – FW) * CTSh] + FRA} * CTL * BSW • FRA is a positive or negative volume adjustment to

account for displacement of the floating roof• FRA units are barrels• FRA adjustment is not a ‘correction factor• FRA = weight (apparent mass of roof)/(density*CTL)• Two distinct FRA computation methods

Method A - tank strapping includes FRA Method B - tank strapping does not include FRA

API Liquid Hydrocarbon Measurement Standards Update

23 11/02/2010

FRA - tank details setup / method A

API Liquid Hydrocarbon Measurement Standards Update

24 11/02/2010

FRA - tank details setup / method B

API Liquid Hydrocarbon Measurement Standards Update

25 11/02/2010

FRA - EU form examples

API Liquid Hydrocarbon Measurement Standards Update

26 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

27 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

28 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

29 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

30 11/02/2010

API Liquid Hydrocarbon Measurement Standards Update

David Johnson, Senior Business Analyst - Enterprise Upstream VolumesNovember 2, 2010