Overview of Process Industries

1. Overview of Process Industries PTAC 1302 CAPT – Chapters 1 to 9 Thomas Chapter 20

2. The Process Industry Process Industry Pharmaceuticals Refining Food/Bev Pulp/Paper Chemical Energy Metals Oilfield Pipeline Alternative Nuclear Traditional

3. Oil & Gas Sector

4. Early Uses of Petroleum • Egypt - mummification • China – heating homes • Persia – asphalt street paving • Sumatra (Indonesia) - medicine • Native Americans - medicine • Medicine shows – miracle elixirs

5. History of Chemical Industry • Persians produced glass in 7,000 BC • Phoenicians – develop soap • Medicines, precious metals – China, Greece, Egypt • Medieval Time – alchemists seek to create gold from non-precious metals • Arabs – middle ages develop plaster to heal broken bones

6. More History • Pilgrims – tanning leather • Industrial Revolution – advent of large scale chemical manufacturing transforms us from agriculture to trade economy • 1800’s – textiles, fertilizers, soaps, glass, paper, explosives • WW I – chemicals to power equipment. Mustard gas to poison enemy • Rayon (artificial silk) & Nylon for women’s stockings in 1928

7. Still More History • WW II – nylon for parachutes, tents, etc; synthetic rubber for tires, rayon for rain gear, etc. • 1960 – present: drive towards cleaner / greener / renewal processes

8. The Market Expands • 1859: Colonel Edwin Drake drilled First oil well in Titusville, PA, by adapting old steam engine to drill bit • 1860: Fifteen refineries producing naphtha, kerosene, heavy oils and tars • 1865: First pipeline in Titusville, PA • 1869: New products: Vaseline, candle wax, gum • 1886: Henry Ford designs first gasoline-powered automobile • Early 1900s: Britain and U.S. dominate industry

9. Chemical Processing • 1913: Thermal cracking to produce gasoline • 1917: First fractionating column • 1920: First gas stations • 1936: Catalytic cracking to produce gasoline • 1940: Catalytic reforming to increase octane

10. War, Petroleum, and Chemicals • In the 1940’s, WWI and WWII dramatically increase importance of processing industries • Industry advances help Allied victories • Synthetic rubber • Plastic • Rayon & Nylon • Higher octane fuels • Post WWII Booms • automobile travel • babies - consumer products

11. The 1950s - 1970s • 1950s: U.S. and European domination of petroleum business • 1950 – now: Nuclear medicine • 1954: First nuclear power plant in Russia • 1960s: Foreign nationalization • 1960’s - 70’s: Plastics manufacturing advances • 1970s: Oil glut and Arab Oil Embargo

12. 1980’s - Today • 1980’s – 2000’s: Process automation advancements, cogeneration • 2000’s – today: Environmentally friendlier / renewable raw materials, recycling, waste minimization, sustainability

13. End Products………..

14. Oil & Gas Sector Terms • Exploration – locating oil and natural gas reservoirs • Production – extracting oil & natural gas from the reserves and bringing materials to surface (on-shore & off-shore) • Feedstock – raw materials coming in • Products end goods going to customers • Petrochemicals – chemical materials made from oil or natural gas

15. Oil & Gas Sector Terms • Refining – purifying crude substances into other products • Distillation (aka fractionation) – process that uses different boiling points to separate materials • Conversion – process that changes size and/or structure of petroleum components (for example – cracking breaks down large molecules into smaller ones • Treatment – prepares materials for further processing • Formulating and blending – mixes other components or additives to enhance final product

16. Oil & Gas Sector Terms • Additional processes • Recovering components • Waste and waste water management • Cooling • Logistics – storage, shipping, transfers

17. Chemical Sector • Raw materials are not just fossil fuel based • Includes – food and beverage, medical, construction, agriculture, clothing, transportation, cleaning, military, personal hygiene, amusement and hobbies • Commodity Chemicals – basic chemicals produced in large quantities at lower cost. Intermediates. • Specialty Chemicals – used less often, produced in smaller quantities at higher cost

18. 7 Segments • Basic chemicals • Synthetics • Agricultural • Pains, coatings, adhesives • Cleaners • Pharmaceuticals • Miscellaneous

19. Mining Sector • Coal for power generation • Zinc, calcium, magnesium, iron, other metals for pharmaceuticals • Salt for food • Metals and cement for construction • Metals and silica for communications • Soda ash for fertilizers

20. Mining Processes • Searching for mineral and ore deposits • Mining – extraction of valuable minerals and other geologic material from earth • Surface • Underground • Conventional • Longwall • Continuous

21. Mining Processes • Processing rocks and minerals • Transport of rocks and minerals to customers • Further refinement or processing (ex alumina silica  alumina) • Separating and Classifying • Crushing, Grinding • Sizing • Chemical processing • Filtering • Washing

22. History of Mining Sector • Stone Age (around 2 million years ago) – crude tools • Copper Age (around 5,000 BC) – more refined tools • Bronze Age(around 2,500 BC) – weapons emerge • Iron Age (around 1,500 BC) – tools & weapons • Steel Age (around 200 AD) – tools, weapons, and construction

23. History • 1800’s – Industrial Revolution powered by coal -- Railroads and transoceanic ships use coal -- California Gold Rush • WW I & WW II – vehicles improve with lighter alloys, communications equipment, post-war construction and reconstruction • 1960’s – Present: coal under fire by environmentalists

24. Power Generation Sector • Generation • Transmission • Distribution • Traditional (fossil fuel based) • Nuclear • Alternative – solar, wind, geothermal, hydroelectric

25. History 101 • Early civilizations – used water power to grind grain into flour • 16th century – coal major source of heating, power • 1700’s – James Watt invents steam engine which spurs Industrial Revolution. Volta invents crude battery. • 1800’s – lots of advances in electricity. Edison with DC (direct current) Tesla and Westinghouse with AC (alternating current). Large power stations built

26. History Keeps On • 1920’s & 30’s – hydroelectric power given a boost with construction of major dams (such as Hoover Dam) • 1930’s – nuclear power develops with fission for weapons and electricity generation • 1954 – Russia starts up first commercial nuclear power plant • 1970’s – Arab Oil Embargo sends world scurrying for alternative sources • 1970’s – 1980’s – major nuclear plant disasters at Three Mile Island (New York) and Chernobyl (Russia) adversely impact growth of nuclear industry due to public concerns • 2000’s – fusion research and alternative energy projects grow

27. Pulp & Paper Sector • Business & Industry – printer paper, checks & financial statements, catalogs, boxes • Medical & Health – medical charts, bandages, crutches and splints, gowns & masks, prescription pads • Construction – building frames, insulation, cement bags, wallpaper • Education – textbooks, notebooks, paper, tests • Household – food packaging, money, toilet paper, furniture, boxes • Recreation – playing cards, board games, tickets, party supplies

28. History Time • Over 2,000 years ago – something to capture important information on… such as decrees, laws, invitations, battle messages • Papyrus, silk, clay • Chinese – invent writing paper & toilet paper • Mid-1400’s – Johann Gutenberg’s printing press lets written word go wild and go global • 1600’s – paper mills born to keep up with expanding growth • 1800’s – mass production of paper goods possible with Fourdriniers machines

29. Processes • Harvesting the softwoods and hardwoods • Pulp Mills – • Logs are washed, debarked • Fibers are mechanically or chemically separated, then washed, screened, and bleached • Paper Mills – convert pulp to paper goods. May be coated.

30. Water & Waste Water Sector • Treatment of water to remove pathogens, hazardous chemicals, and particulates • Water Treatment Process: • Primary Treatment to remove settleable solids • Secondary Treatment to remove suspended solids • Tertiary Treatment to remove dissolved solids

31. Food & Beverage Sector • Basics – grinding to use grains for breads • Distillation - alcohol • Fishing and Slaughtering • Canning & Packaging • Cryogenics & Refrigeration • Industry changed and grew out of concern for pathogens in food stuffs • Removal of harmful dyes and additives • Convenience Food Packaging, Microwavables, Fast food craze

32. Processes • Disinfecting • Preserving • Manufacturing • Drying • Agglomerating • Roasting and Toasting • Cooking and Frying

33. Processes • Mixing • Evaporating • Reverse Osmosis • Pasteurizing • Distillation

34. Most Tightly Regulated • FDA – food and drugs • NOAA – fishing and seafood • ATF - alcohol • CDC – disease control • USDA – meat and poultry • EPA – drinking water

35. Pharmaceutical Sector • Medicines and Drugs • 2000 BC – apothecaries prepare mainly herbal drugs • 1000 BC – Egyptians writing prescriptions • 200 AD – Roman scientist Galen develops compounding. Many of his “recipes” still in use today. • 1600’s – 1700’s – pharmaceutical practices launch in Switzerland and Germany • 1800’s – quality control introduced. Biologicals hit the scene • 1900’s - antibiotics

36. Unit Operations Used • Reactors for Organic Chemical Reactions & Ammonia Reactions • Cryogenics • Centrifuges and Filtration

37. Drug Approval & manufacturing Process • Pre-clinical studies • Clinical Evaluation • Clinical Trials • Regulatory Filing • FDA approval and post-approval monitoring • Cost of developing a new drug is about $900 million dollars over 10 -1 5 years • Large-Scale Manufacturing • Generics Introduced

38. Today’s Process Industry Impact on Gulf Coast Region • Process industries responsible for about 50% of Houston’s economy • Employs 60,000 workers • Needs 4,800 – 6,000 new hires/year • Jobs have become more complex

39. Current Trends • Oil prices (hence petrochemical product prices) very dependent on world events, politics • Big Rollover – peak production…. many believe it came in 2006-2007 • Hubert Peak Theory of global petroleum production peaking, then declining 2006-07… but then comes shale production – what else might we be able to recover in future?

40. Current Trends • Consolidations in industry • Mergers and acquisitions • Reduction of duplicate processes • Emphasis on keeping costs low • Impact on Process Technicians • Higher expectations, more responsibility • More education and training needed • More proactive work strategies

41. 1. Serious foreign competition 2. More use of computers, advanced control simulation, process automation 3. Rapid technological change 4. Partnerships between education and industry 5. More regulation 6. More legal issues 7. More responsibility, higher expectations of workers 8. More education/training 9. Less supervision 10. More smart jobs, 11. Job sharing 12. Sex equity and diversity issues Trends for the Future