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Energy Efficiencyat Marathon Petroleum

Wayne KinnelCatlettsburg Energy Coordinator

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Marathon Petroleum Statistics at a Glance Fortune 50 company

Established in 1887

4th largest U.S. refiner Largest in Midwest

Employees: approximately 28,000

Headquartered in Findlay, Ohio

Approximately 1,460 Speedway convenience stores

Approximately 5,000 Marathon Brand retail outlets

Extensive terminal and pipeline network

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Marathon Petroleum Refining SystemSystem capacity: 1,699,000 BPCD

Garyville (LA)522,000 BPCD

Texas City (TX)80,000 BPCD

Catlettsburg (KY)240,000 BPCD

Detroit (MI)120,000 BPCD

BPCD = barrels per calendar daySource: Oil & Gas JournalAs of 2/1/2013

Canton (OH)80,000 BPCD

Robinson (IL)206,000 BPCD

Galveston Bay TX 451,000 BPCD

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Catlettsburg Refining Complex and energy intensive processes

Continuous operation 24/7

Energy is second largest operating cost Natural gas – 75%

Electricity – 25%

Managing energy is imperative to remaining competitive/viable

Resources and systems in place to monitor and improve Daily operational Medium-term activities Long-term strategy and projects

Significant investments made and planned

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Catlettsburg Refining Expansive electrical infrastructure required

Refinery footprint is 600+ acres

There are 130 electric substations and approximately 2,000 electric motors 120-130 MW of demand to operate refinery

Largest Kentucky Power customer

>95% of consumption is for continuously running process equipment

Significant people resources monitor and maintain electricity infrastructure 13 engineers 25 electricians 60-80 electrical contractor personnel onsite daily

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Improving Energy Efficiency Part of our standard work practices

Short-term – daily operational monitoring

Medium-term – maintenance planning activities

Long-term – strategic projects

Effective energy management is an “all-above” approach

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Monitoring Daily Operations Significant benefits from daily attention to process operations

Tuning process heaters

Optimizing utilization of energy from process operations

Monitoring sources and uses of steam

Controlling the operation of large electrical users

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Monitoring Daily Operations Formal assessment program - Focus On Energy initiative – “FOE”

To accomplish – set standards for performance

Measure actual performance in real time

Communicate deviations from standards

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Monitoring Daily Operations Supported by technical, operations, and management personnel

Completed process unit reviews and identified 148 individual monitoring points

Each point assigned a dollar value, tracked and reported

35% reduction with no investment

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Medium-Term Activities Equipment maintained to perform at optimum efficiency

Equipment upgrades and major maintenance efforts normally require a unit shutdown

Cycle times between shutdowns can be 5-7 years

Data from routine equipment monitoring is used to develop shut down work scope

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Long-Term Strategy/Projects On-going efforts to identify and implement energy reduction opportunities

Energy specific projects – Insulation upgrades, steam leak repairs and upgrades, on-line analyzers, exchanger bundle upgrades

Energy assessment for other projects

Crude unit project example Significant investment currently underway

Process and energy efficiency improvements incorporated into scope Redesign of heat integration system to reduce consumption Improvements to fired heater for improved efficiency Fuel reduction of 720 MMBTU/day Electricity reduction of 3,000 kwh/day

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Long-Term Strategy/Projects All projects reviewed for energy efficiency improvement opportunities

Standard practice to consider high efficiency motors

Participate in industry benchmarking studies Identifies opportunities for improvement

Share and implement best practices across all MPC sites

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Summary Efficiently using all energy sources is a business imperative

Resources employed to manage and maintain energy infrastructure

Programs in place to monitor and improve performance

Efforts range from daily optimization to large multi-year, multi-million dollar projects