Crude oil cannot be used directly, but has to be refined to make commercial products, such as liquefied petroleum gas (LPG), automotive and aviation fuel, lubricants, fuel oil and asphalt.
Refineries use increasingly complex processes to treat the oil they deliver to consumers. The refining business faces a wide range of challenges, including securing reliable supply sources, developing new product grades and generally complying with increasingly strict environmental requirements.
Refined products: Production Levels
| (in kb/d) |
2006 |
2005 |
2004 |
|
| Gasoline |
532 |
534 |
580 |
|
| Avgas and jet fuel |
179 |
191 |
188 |
|
| Kerosene and diesel fuel |
660 |
639 |
712 |
|
| Fuel oils and heating oils |
582 |
593 |
552 |
|
| Other products |
455 |
406 |
419 |
|
| Total(1) |
2,408 |
2,363 |
2,451 |
|
| |
|
|
|
| (1) Includes Total's share in Cepsa.
Key Positions
Total is Europe’s leading refiner-marketer. We have interests in 27 refineries in Europe, the United States, the French West Indies, Africa and China and operate 13 of them directly. In Europe, the combination of high refining capacity and significant sales volume positions us as a leader in refining and marketing based on refined capacity and refined product sales (Company Sources). We operate 12 refineries in Western Europe. In Africa, have interests in seven refineries.
A Leader in Specialty Products
Total produces a wide range of refined petroleum products at its refineries and other facilities. In addition to automotive fuel, Total refines and markets a broad range of specialty products that require the use of advanced technologies to convert them from crude oil for industry and consumers. Total's refineries allow the Group to produce a broad range of specialty products, such as lubricants, liquefied petroleum gas (LPG), jet fuel, petrochemical feedstock, special fluids and bitumens.
Promoting Renewable Energies and alternative fuels
The Group plays an active part in the promotion of renewable energies and alternative fuels.
In 2006, Total consolidated its position as an important oil and gas company active in biofuels in Europe (ETBE (Ethyl-Tertio-Butyl-Ether),VOME(Vegetable-Oil-Methyl-Ester, biodiesel).
In November 2006, Total and several other parties (car manufacturers, oil companies, agricultural representatives, ethanol producers) signed the Superethanol E85 Development Charter, a charter to develop superethanol in France (fuel with up to 85% of ethanol from agricultural production, also called “flexfuel”). As part of this charter, Total undertook to equip 200 to 275 retail stations to distribute flexfuel by the end of 2007. The rate at which Superethanol is adopted by the market will depend both on the creation of appropriate tax incentives and the marketing of suitable vehicles.
In 2006, Total continued its research and testing programs for fuel cell and hydrogen fuels technologies. To this purpose, Total entered into cooperation agreements for automotive applications (with BMW in March 2006, Renault in 2003 and Delphi in 2001) and for stationary applications (with Electrabel and Idatech in 2004). Under its partnership with BVG, the largest public transport company in Germany and the bus operator in Berlin, Total created a Center of Excellence for Hydrogen in Berlin. The first consumer hydrogen fueling station opened in Berlin in March 2006. As part of the partnership with BMW, a second hydrogen fueling station opened in December 2006 near the car manufacturer’s Innovation and Research Center. The construction of a third hydrogen fueling station in Europe is under study. Total is also an active participant in the hydrogen technology platform program launched by the European Commission at the end of 2003, intended to promote the development of this technology in Europe.
Ensuring Safety and Environmental Protection
Each refinery complies with extremely strict safety and environmental protection requirements, with all the necessary equipment installed to limit the environmental impact of operations. Process water is analyzed continuously, then systematically treated and purified before discharge. Air quality is also monitored constantly, while preventive measures are initiated whenever an alert threshold is approached. Disamenities related to plant operations are subject to special measures that are regularly enhanced through close dialogue with neighbors and local communities.
From 2006 to 2010, Total plans to invest approximately 5 B€ in refining, excluding capitalization of turnarounds. Nearly 40% is designated for projects to increase refining capacities and for conversion projects to upgrade heavier crudes. Nearly 20% is designated for developing units and desulphurization to process high-sulphur crudes. Finally, approximately 30% is designated for modernizing refining sites, improving safety and energy efficiency and reducing environmental impacts.
This program, initiated with the construction of a distillate hydrocracker (DHC) at the Group’s refinery in Normandy, France, which came on-stream successfully in 2006, continued in 2006 with the launch of engineering studies for two major projects: the construction of a full-conversion refinery in Saudi Arabia and the construction of a deep conversion unit at the Port Arthur, Texas. |