Refining the refinery sector

Rising global demand for petroleum refinery products has led to an unprecedented demand for engineered-to-order products such as centrifugal and reciprocating compressors, and steam turbines. Bradford Dickson, Dresser-Rand’s Executive Vice President, New Equipment Worldwide, explains how his company is at the forefront of these technologies…

O&G. According to the International Energy Agency, as a result of strong growth in demand for refined products in recent years, spare capacity is diminishing rapidly and production flexibility even faster.

BD. The refinery market has been strong in recent years and this market is expected to continue to grow, increasing demand for rotating equipment solutions. For more than 165 years we’ve been successful at providing equipment for demanding applications in the oil and gas and energy infrastructure markets. This success is demonstrated by our installed base, which we conclude is more than 94,000 units with the Dresser-Rand nameplate, as of December 2005. We also estimate, as of December 2005, that we have more than 40 percent of the installed base of similar class rotating equipment worldwide.

Today’s high demand was not a surprise. Several years ago, Dresser-Rand anticipated the trend toward value selling and the need for developing stronger client and supplier relationships. We undertook the process of developing a method for structuring long-term alliance agreements, and refined the methodology to include virtually all aspects of our offerings. Part of this process included the development of a strong value proposition to make our clients more competitive in their markets. Our goal was to provide them with the lowest possible cost of ownership on their equipment over its entire life cycle.

Another component of this process involved strengthening our relationships with key clients through long-term alliances. These agreements include anything from new equipment and aftermarket services to training, as well as operation and maintenance programs. Each one is unique and requires a thorough understanding of each client’s requirements and challenges. But ultimately, both parties benefit. By working with the client earlier in the process there is more opportunity for effective engineering collaboration and joint development of specifications.

The result is a value proposition consisting of advanced business processes, premier technology, industry-leading cycle times and worldwide service and support. In turn, the client receives the most innovative technologies, delivered in the shortest amount of time, which reduces their costs and improves their revenues, helping make both companies more competitive.

O&G. Energy and cost efficiency are key. How are your solutions helping meet these needs more effectively than your competitors – particularly your steam turbines?

BD. Dresser-Rand has more than a century of experience in designing, manufacturing and servicing standard single and multi-stage steam turbines and engineered multi-stage steam turbines. With the addition in 2005 of the Coppus, Murray and Nadrowski product lines, our steam turbine installed base consists of approximately 62,000 units worldwide. Dresser-Rand provides clients with the most comprehensive steam turbine offering in the industry – backed by a worldwide network of sales, manufacturing and service support.

We’re well positioned to deliver steam turbine solutions for electric, generator and mechanical drives for applications to 100 MW. And as a leader in technology, we’re committed to R&D and helping our clients determine the best solutions for their equipment and operating needs.

In the past 20 years, Dresser-Rand has improved the overall efficiency of its steam turbines by nearly 10 percent. Advances in steam-flow-path aerodynamics and thermodynamics, combined with improved materials and manufacturing processes, have made it possible to improve steam turbine performance with simple component upgrades – even if the units are operating at or close to their original specifications.

For example, we’ve developed nozzle ring and diaphragm construction techniques that yield significant improvements compared to previous methods. Dresser-Rand uses an innovative profiled ring and vane (PRV) process to construct nozzle rings and diaphragms. PRV diaphragms, with their special end-wall profiling, offer greater efficiency compared to conventional designs.

Another example is our retractable labyrinth seal design for interstage shaft sealing on large steam turbines. This advanced design increases unit reliability and maintains long-term efficiency.

As a package with Dresser-Rand’s DATUM centrifugal compressor, our axial discharge steam turbine offers high efficiency and proven reliability as a compressor driver. The DATUM compressor offers the highest efficiencies in the industry across the full range of applications. The advanced design allows a single DATUM compressor to accommodate greater flows per frame size than comparable compressors. In many cases, clients have been able to achieve the same pressure ratio with a single DATUM case, as opposed to using multiple units. The result is higher efficiency and lowered fuel consumption and associated costs.

New markets are opening up for steam turbine offerings. For example, each of the new ethanol plants that are coming on line in the US need steam turbine generator sets. Dresser-Rand has developed product packages in the 2-4MW range for this emerging market segment.

O&G. Your company prides itself on adding superior value in every phase of its business – from project development to life cycle support. How is this being achieved?

BD. Process improvement is an ongoing commitment to excellence. Whether it is developing comprehensive training programs for our employees, the interactive Client Interface Response System (CIRS), or developing innovative tools such as the D-R product configurator, Dresser-Rand is committed to continually working smarter.

Our value proposition is to make our clients more competitive in their markets. In order to accomplish this, we have to provide our clients with the lowest possible cost of ownership on equipment over its entire life cycle.

We’re committed to bringing our clients the most value through advanced business practices, premier technology, industry-leading cycle times, and worldwide support and service capabilities. Cycle times don’t just refer to manufacturing schedules. At Dresser-Rand, we strive to reduce the time required for every aspect of service to our worldwide client base. With the support of our Product Configurator, our business processes enable faster cycle times for all phases of projects.

Innovative products such as the high-efficiency DATUM compression system are evidence of our pledge to provide the most advanced technology. The introduction of the DATUM line was a “clean-sheet” design that involved every area of the company to deliver maximum efficiency, reliability and serviceability. The modular design means consistency with our parts and materials supply chain programs. The most advanced machine tools, as well as skilled operators and technicians, translate into efficient manufacturing operations. The result is the shortest overall cycle times in the industry.

Dresser-Rand’s worldwide service and support network is second-to-none among the manufacturers of rotating equipment solutions to the oil, gas, petrochemical and process industries. Our extensive network of 26 service centers covers more than 140 countries, and is designed to place the industries most capable service technicians close to our clients’ operations.

O&G. As a global company, how flexible are your solutions to meet the unique refining needs of countries outside of the US as well as within national borders?

BD. Dresser-Rand maintains manufacturing facilities, service centers and technology centers around the world. With one of the largest bases of installed rotating equipment, we have worked with refinery clients in more than 40 countries, and on every continent.

For each project, Dresser-Rand focuses on adding value to the client’s asset base by improving efficiency and reliability, and reducing the total cost of ownership. We work with clients all around the world and as such, we are expected to meet client, industry and government/local specifications.

For US domestic refinery operations, the demands of maintaining production levels at maximum capacity are complicated by the need to meet requirements of The Clean Air Act, Tier 2, regarding sulfur, toxins, diesel and gasoline fuels emissions, and air and water purity. These efforts affect an estimated 200 refinery processes and more than 450 new or revamped compressors. The regulations also affect international suppliers who are required to meeting U.S. import standards for refinery products.

At the same time, there is increasing pressure in Asia, Africa and Latin American to meet more stringent standards for air quality and reduce potentially harmful emissions. Over many decades, Dresser-Rand has demonstrated success working with major European clients to meet exceedingly strict emissions regulations.

The result is a wealth of experience and expertise meeting international codes for refinery projects. As the cost of refining has increased, it is more important than ever for equipment operators to consider total life cycle value management. Dresser-Rand develops energy solutions for clients by understanding their operations and business goals, and we are prepared to do that regardless of where they are located. Whether we are revamping existing compression equipment with the latest technology or providing new equipment and controls, we are prepared to tailor the solution to their individual requirements, while providing the greatest asset value and the lowest life cycle costs.

O&G. What advances in technology are helping to further boost the refining process?

BD. Our engineers are continuously looking for new ways to enhance performance by increasing efficiency and reliability. We’ve been servicing and repairing equipment for clients throughout the world for decades and invests more than US$10 million annually in product development. This development work has yielded many technically advanced upgrades and product improvements that enhance equipment performance and improve the reliability and availability of critical process machines. We recognized some time ago that many of the developments would be beneficial to our clients when “applied” to other manufacturers’ equipment. So, we established an Applied Technology organization to provide clients with reliable service for most or all brands of rotating equipment that is critical to their operations.

Upgrading and modernizing installed rotating equipment can yield significant reliability gains and other cost benefits for clients. We offer an extensive range of value-added, state of the art upgrades and modernizations for most brands of rotating equipment.

In addition to the maintenance advantages of our DATUM compressor’s modular design, DATUM technology provides industry-leading operating efficiencies across a wide range of applications. In many cases, Dresser-Rand has been able to meet a client’s performance requirements with a single high-efficiency DATUM unit where two compressors would normally be required. We are also able to replace the internals of non-Dresser-Rand equipment with new DATUM technology. To date, nearly 500 DATUM centrifugal compressors have been sold to clients worldwide.

Another example of our advanced technology includes steam turbine generators that use axial exhausts to minimize installation costs and improve efficiency. Our Magnum valve for reciprocating compressors sets new benchmarks for reliability, efficiency and affordability, and. they can be configured for a wide range of operating conditions and nearly any gas.

Dresser-Rand is a world leader in the design, manufacture, installation and service of fluid catalytic cracking (FCC) power recovery units for refineries. FCC expanders recapture energy by taking high-temperature flue gas (that is normally throttled to reduce pressure before entering the flue gas cooler and exhaust stack) and convert it to mechanical energy. The energy is then reapplied to the process to run a generator or drive a compressor.

We have provided FCC power recovery units of various frame sizes to refineries of almost every major oil company worldwide, accumulating more than 11 million operating hours. In recent years, advancements in materials and design technology have served to increase the reliability and efficiency of the units.

During the past 50 years, Dresser-Rand has integrated more than 2,500 control systems into new rotating equipment or provided these systems for installed equipment through aftermarket service. We offer bundled, all-in-one solutions that clients are increasingly demanding with our RECON remote condition monitoring tool, and DI-TRONICS, the flagship of our turbomachinery control initiative. Both incorporate state-of-the-art electronic instrumentation to perform advanced control, condition monitoring, and protection for rotating machinery and process applications.

O&G. Overall, how do you see the refining industry landscape changing over the next few years and how is your company looking to develop to remain at the cutting edge of rotating equipment solutions?

BD. Rising global demand for petroleum refinery products has led to an unprecedented demand for engineered-to-order products – centrifugal and reciprocating compressors and steam turbines – placing stress on all levels of the supply chain. Lead times for most raw materials have become stretched, availabilities are being impacted, and the prices for materials are rapidly escalating.

Among the suppliers of major components, such as motors, gears and variable speed drives, many companies are shortening their bid validity from a typical 180 days, to as little as 30 days. The clients and contractors we work with have recognized this trend and have begun to embrace “strategic procurement” practices. This has caused them to work more closely with their key suppliers to help minimize their costs and lead times.

Our ultimate goal is to make our clients more competitive in their businesses. By strengthening our relationships with these key clients in advance, it encourages more collaborative engineering earlier in the process, reducing planning cycle times. Additionally, it helps standardize the terms, conditions and technical specifications of projects, making it easier to take advantage of better supply chain practices.

Bradford W. Dickson has been Dresser-Rand’s executive vice president, New Equipment Worldwide, since 2004.

Mr. Dickson has been with Dresser-Rand Company and its predecessor companies since 1977. He has held various leadership positions in International Sales, Marketing, and Project Management for Dresser-Rand Company and its predecessors, including three years located in Caracas, Venezuela managing the Venezuelan and Colombian Operations.

From January 1999 to August 2000, Mr. Dickson served as executive vice president, Latin America, and served as executive vice president, The Americas Region, from August 2000 to April 2002.

From April 2002 to July 2003, Mr. Dickson served as executive vice president, The Americas and Asia Pacific Regions. From July 2003 to October 2004, he served as executive vice president, responsible for all company new equipment sales worldwide, and also carries responsibility for Corporate Marketing and the Government Business Unit.

Mr. Dickson has more than 29 years of experience in the global energy industry working with compressors and turbines for process and oil and gas applications.

Mr. Dickson earned a BS degree in Engineering from the University of Illinois and an MBA from the University of Southern California's Marshall School of Business.