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The 7th Petroleum Technology Congress,2014

The Prospect of Petroleum Industry

(Korea)

SK INNOVATION
2014. 10. 28.

Energy Industry Trends

Contents
Energy Industry

Petroleum Industry

Technology(R&D)

 Energy System World Energy Flow

World Energy Flow in 2007: ~490,000 PJ

PJ: petajoule (1015 joules)

Energy Challenges

Energy Energy Security Environmental

Demand Issues

Population Supply Chain Not just CO2!

Security Water, land
Global GDP
Cyber Terror
Living
Flexibility
standards

1 2 3

Energy Challenges Energy Supply

How Can We Meet the Increasing Demand of Energy?

400

350

300
Energy Use, GJ per capita

250

200
Global Trend
150 EU-15
North America
100
Korea 1970-2000
Malaysia 1970-2000
50
China 1970-2002

0
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000
GDP per capita, US$ 1995 ppp

 Energy Challenges Energy Supply

Peak Oil Assumption

The end of the Stone

Age wasnt caused by
the shortage of stone

v.s

Soudie Petroleum Company: 1962

~ 1986
Former OPEC Secretary General

SAIC, R. Hirsch, Peaking of World Oil Production: Impact, Mitigation, Risk Management, May 2005
Energy Challenges Climate Change
Pollution From Automobile (1/100 compare to the early 70s)
makes Climate Change.
What Influence Its Going to Have on The Future Energy Mix by
Climate Change?
R.K. Pachauri, IPCC Chairman

Sea Level Rise: Max. 59cm

w/o policy 6oC Over 90% of Living Things in
62Gt Earth Went Extinct.

Sea Level Rise: 38 cm

Max 90% of Living Things in
w/ policy in today 3oC Earth Went Extinct.
GHG 550ppm
Water Shortage, Famine
Sea Level Rise: 23 cm
Decrease the Crop in
BLUE (50% of 2005)
14Gt, GHG 450ppm
2oC Tropical Region.
(e.g. Africa: 5~10%)
Source: IPCC, Sterns review 2008
 Energy Challenges Investment

37 Trillion Dollar Should be Invested for Energy until 2035

$37 trillion

Oil & Gas

$19 trillion

PV (13%)
60%
Power Hydro (16%)
Generation
$17 trillion Wind (22%)

Transmission 40%
And
Distribution

IEA, World Energy Investment Outlook, 2012

Energy Challenges Lead Time

The rate of technological

change is closely related to Buildings 45+++ years
the lifetime of the relevant
capital stock and
equipment Hydro 75+
years

Coal power 45+ years

Nuclear 30 60 years

Gas turbines 25+ years

Motor vehicles 12 20 years

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 ++

Innovations Strategy

Diversifying Energy Portfolio

Mitigate Increase
Emissions Efficiency

Expand
Energy Supply

10
Innovations Expand Energy Supply

Expansion of Unconventional Oil Supply

11
Innovations Expand Energy Supply

Primary Recovery Oil Production by Internal Pressure in Well

(~15%)

Conventional Recovery
Internal Pressure Artificial Lift

Secondary Recovery Oil Production by Water Injection to Well

(~45%)

Water Injection Pressure Maintenance

Tertiary Recovery (EOR)

(~65%)

Oil Recovery
Enhanced
Thermal Gas Chemical
Combustion, Steam CO2, N2 Polymer
Hydrocarbon Surfactant
CO2-Foamer
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Forecast for Energy Future Future of Fossil Fuel

Primary Energy (2013)

Future?
Nuclear (5.1%)

Natural Gas
Hydro
(2.3%)
(28.8%)

Biofuel
Oil Renewables &
(31.5%) (13%) Waste
(9.7%)

Coal
(28.8%)
Other renewables
(1.0%)

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Forecast for Energy Future Multiple Energies

Petroleum Era Multiple Energies

Coal Era (19C)
(20C) Era (21C)
Wind Power

High Oil Price

Climate Change
Resource
Depletion
R&D
Policy

Solar Energy

Bio-fuel
Oil Sand
Nuclear Energy

Natural
Gas

Geothermal

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Petroleum Industry

Contents
Energy Industry

Petroleum Industry

Technology(R&D)

15
Oil & Refining Industry Industry Structure

Equipment

Service

16
Oil & Refining Industry Upstream

93 Million Barrel in 2010, 110 Million Barrel

- 70 Thousand Oilfields , Operating 4.7 Million
Oilfields
- Developing 350 Projects

Accumulated Use of Crude: About 1 Trillion BBL

Proven Oil Reserves: 1.5 Trillion BBL

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Oil & Refining Industry Upstream

Increase in
Accordance
with Demand.

Soudie Arabia
1.5$

18
Oil & Refining Industry Transportation

Ship Requirements, At 1 Million

120,000 ton
620 Barrel Increased Production
631
160,000 ton 435

300,000 ton 631

450,000 ton

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Oil & Refining Industry Refining & Marketing: SKE

50 Trillion Won Sales, 60 Billion Won Operating Profit

840,000 bbl/day, Over 50 Crudes
4,030 Gas Stations

Total Length of Pipeline: 400,000km / Ulsan CLX Area 8.26 million m2

cf. Distance between the moon and the earth : About 380,000km
Refining Industry in Korea Indicator

13 Refining Capa. Ratio (%) 13 Sales/Export

20.0 18.8
Whole World: 60 (Trillion )
18.0
95 million B/D 50
16.0 50
Sales
Export

14.0 13.3
40 37
12.0

10.0 30
25 26
8.0 23
6.3 20
6.0 20
4.5 4.3 15

4.0 3.0 2.7 9

2.2 2.2 2.2 10
2.0

0.0
-
USA China Russia India Japan Korea Soudie Brazil Italy Germany Hyundai
SK GS S-Oil
Oilbank

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Refining Industry Strategy

Opportunity Clean Coal

Crude Treating
or,
and
Biofuels

Optimization

Core Biz Beyond (P)HEV/EV

Enforcement Petroleum
Energy Cost
Reduction
PV, Wind

Higher Value-added
Water
Semi-Product

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Technology

Contents
Energy Industry

Petroleum Industry

Technology(R&D)

23
Totals Market Perspectives
Total Refining & Marketing Refining Outlook
Olivier ALEXANDRE
AXENS Pre-ERTC Seminar November,
2010
Axens Seminar - Responding to Market Imbalances - 29 November
24
24
2010 - Istanbul, Turkey
 Feedstock Selection
Sulfur Contents Low Quality Crude

Density (API)

25
Feedstock Selection Process Limitation

Asphaltene

Transport High Viscosity

Refining Metal and Ash

26
Process Catalyst/Process Development

Separation Reaction

Utility Cost Catalyst

Reduction Life Cycle Extenstion
Corrosion Increasing High Value
Prevention Product Production
27
Product Optimization Products Develpoment

Value-added
Semi-Product

Regulation

High Efficient
Product

Formulation

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Thank You