SulphCo study evaluates value of crude oil upgraded with Sonocracking technology
SulphCo announces results of an economic analysis valuing improvement in quality obtained from treatment of crude oil with its Sonocracking technology. The report, prepared by NEXIDEA Inc., used data from recent independent assays of Mexican Maya crude oil before and after treatment with the Sonocracking technology. The purpose of the study was to understand the improvement in the value of Maya crude oil that may be realized in the market after treatment with the company's technology...
SPARKS, NV, Nov. 21 -- SulphCo®, Inc. announced today the results of an economic analysis that values the improvement in quality obtained from treatment of crude oil with its proprietary and patented Sonocracking™ technology. The report, which was prepared by NEXIDEA Inc., of Dallas, TX, used data from recent independent assays of Mexican Maya crude oil before and after treatment with the Sonocracking technology.
The purpose of the study was to understand the improvement in the value of Maya crude oil that may be realized in the market after treatment with the Sonocracking technology. The study explored the economics of replacing normal export blend Maya crude with "Sonocracked" Maya crude in a typical US Gulf Coast coking refinery. Based on recent pricing (for the 12 months ending September 2006), the study estimated a $3.30 to $3.50 per barrel enhancement to the value of Maya crude oil through the implementation of the Sonocracking technology.
The evaluation, which utilized a Linear Program model of the typical Gulf Coast coking refinery, considers many variables including pricing, crude oil quality, product specifications, and refinery operating costs. The model assumes a crude slate containing approximately 20% Maya, all of which is replaced with treated Maya in determining the improvement in crude oil value. The improvement is attributed to an increase in the amounts of high-valued products, particularly naphtha and kerosene, present in the treated oil as well as other property improvements which allowed the refinery to optimize its crude and feedstock mix for greatest economic gain.
"We are extremely encouraged by the results of this analysis," said Peter Gunnerman, President of SulphCo Inc. "It was critical for us to employ a top industry consultant like NEXIDEA to externally validate the economic benefits of our technology in upgrading Maya crude."
Due to the specific nature of this analysis, SulphCo plans to undertake a more global economic analysis of the Sonocracking Technology in the future and will look forward to working with NEXIDEA for such future work.
NEXIDEA Inc. is a professional consulting firm specializing in the technical and economic aspects of the petroleum industry with particular emphasis in crude oil refining. NEXIDEA predicated its analysis on the data supplied to it in the assays. NEXIDEA was not involved in the Sonocracking treatment or analytical testing of the Maya crude oil and has not independently verified the improvement in quality shown in the assay data.
SulphCo (www.sulphco.com) has developed a patented safe and economic process employing ultrasound technology to desulfurize and hydrogenate crude oil and other oil related products. The company's technology upgrades sour heavy crude oils into sweeter, lighter crudes, producing more gallons of usable oil per barrel.