Low-Cost High-Efficiency Micro Oil Refinery Systems

3,000-100,000 Barrels-Per-Day Capacities


Conventional Oil Refineries Use Extremely High Heat and Pressures to Refine Crude Oil Into Higher-Value Fuels

Refined Product Ratios of Bunker Fuel, Jet Fuel, Gasoline & Diesel Fuels are based on the API gravity, asphaltene % and paraffin % of the input crude oil

Types of cruid oil Gravity (Api) Sulfur (wt.%)
Light Sweet 35-60 0-0.5
Light Sour 35-60 > 0.5
Medium Sour 26-35 > 1.1
Heavy Sweet 10-26 0-1.1
Heavy Sour 10-26 > 1.1

Unfortunately, Emissions From Refineries and the Combustion of Refined Fuels Affect Human Health -- Especially Combined With Atmospheric Aerosols That Form Harmful Secondary Pollutants (Absorbed by Particulate Matter & Dissolved In Rain Droplets)


Harmfull Effect:

  1. Eye Irritation
  2. Skin Irritation
  3. Nausea
  4. Breathing Difficulty
  5. Lung Inflammation
  6. Bronchitis/Asthma
  7. Heart Disease
  8. Cancer Risk
  9. Acid Rain Environmental Damage

~90 Million Americans Live Within 30 Miles Of At Least One Oil Refinery - And Many Live Near More Than One

Latest Air Quality Measurements Confirm Downwind Toxic Refinery Emissions

  • Conventional-type Oil Refinery and chemical plant flares release FOUR TIMES as many volatile organic compounds (VOCs) than previously thought.
  • Toxic air emissions from many refinery sources, like flares, tanks, and cooling towers, can be TEN or even 100 TIMES higher than that reported to regulatory agencies.
  • Emissions include a toxic soup of particulate soot, carcinogens, neurotoxins, and hazardous metals, such as benzene, hydrogen cyanide, and lead.
  • Emissions of hydrogen cyanide, a poisonous gas that attacks the nervous system, were underestimated by a factor of 10 from refineries' fluid catalytic cracking units—equipment used to make gasoline and other fuels.

All Major Economies – Including China And India – Now Require Transportation Fuels To Reduce Harmful SOx and NOx Emissions

SOx and NOx Emissions Are Linked to Deaths of 10s of 1000s of Children/Elderly Each Year.

Maximum sulfur Limits in On-Road Diesel,2018

Ukrain required 10 ppm Since January 2018


Shipping pollution kills 60,000 every year


The International Maritime Organization (IMO) agreed to reduce the sulfur content of marine fuel from 3.5 percent to 0.5 percent beginning January 2020.


Global Regulatory Shift to Low-Sulfur Fuels Is Expected to Harm Oil Refineries and OPEC’s High-Sulfur Crude Oil Producers

Middle Eastern OPEC Oil Countries – especially Saudi Arabia, UAE & Kuwait -- could be especially harmed due to a majority of their oil reserves containing the crude oil industry’s highest amounts of sulfur >2% (which contaminates refinery equipment and the fuels produced).


Saudia Arabian Oil Types

Saudi Grade API Sulphur Type
Arabian extra light 39.4 1.09% Light Sour
Arabian Heavy 27.7 2.87% Heavy Sour
Arabian light 32.8 1.97% Medium Sour
Khafji 28.3 2.85% Heavy Sour
Saudi Heavy 27.0 2.87% Heavy Sour
Saudi Light 34.0 1.97% Light Sour
Saudi Medium 31.0 2.35% Medium Sour
Wafra 24.5 3.80% Heavy Sour
Average 30.6 2.47%

Saudi Aramco’s 2019 “Medium Term Note” Prospectus Confirms: >50% of Saudi Oil Reserves Have Very High Sulphur Content >2%

“Since sulphur must be removed prior to crude oil being refined into other products, crude oil with lower-sulphur content has a higher value”

(because then refineries don’t have to spend extra money reducing the sulfur content)


2020 Low-Sulfur Maritime Emissions Rules Expected to Cost High-Sulfur Oil Producers Billions in Lost Oil Sales and Customers


Saudi Arabia, UAE and other Mid East suppliers of high-sulfur crude oils could take a hit as refiners favor lighter, low-sulfur grades that they can process more easily into less-polluting fuels under new IMO rules.

“From the perspective of the heavy-sour crude producers, they have not only lost volumes and market share, but they are also going to get a hit to their price,” said Citigroup commodities analyst Eric Lee.

The value of crude exported from the Middle East could slide by $3 to $5, Citigroup’s Lee said in an interview. Analysts at consultant Wood Mackenzie Ltd. and The Oxford Institute for Energy Studies give similar estimates.

Middle East Oil producers selling 20 million barrels a day could lose $7-Billion to $37-Billion in annual revenues, based on Bloomberg calculations. This equates to an 8% loss of regional sales, based on a $63.00 oil price.


Best Strategy to Protect High-Sulfur Crude Oil Producers?:

Finance Micro Oil Refineries Around the World

Finance 100 MORs for $7-Billion to Generate $21-Billion In Annual Oil Sales

DESIGNER FUELS patents-pending clean MICRO OIL REFINERY technology dramatically differs from conventional crude oil refining by use of our unique closed-loop, heat-recycling, gas-recycling, efficiencies

It captures and recycles emissions from the input crude as fuels for its heaters, while dumping the unwanted components of crude oil into a chemical-rich residuum at the end of the process.

The process converts crude oil feedstock at lower temperatures (550oF) compared to conventional oil refinery temperatures (at 1,000oF) and uses a safer, lower operating pressure of <20 psi as compared to oil refinery pressures >900 psi.


Designer Fuels’ Micro Oil Refinery Advantage vs Conventional Oil Refinery Costs

66% - 79% Lower Construction-Costs and 80% Lower Operating Costs

Capital cost for a 20,000 barrel per day conventional oil refinery is $400+ million compared to $106-million for an MOR

Micro Oil Refinery Facility Construction Costs

Cost Per-BBL Savings Compared
BBD Capacity Facilty Price Of Capacity to Conv. Refinery
10,000 $68,243,949 $6,824 66%
15,000 $87,858,572 $5,857 71%
20,000 $106,280,570 $5,314 73%
30,000 $137,692,566 $4,590 77%
50,000 $241,911,635 $4,838 76%
75,000 $359,167,953 $4,789 76%
100,000 $410,697,697 $4,107 79%
Compared to Conventional Refinery $20,000

Oil Co’s Finance 100 MORs for $7-Billion: to Make $21-Billion In Annual Oil Sales


135 Oil Refineries Located Far From Their Customers Produce America’s Fossil Fuels

Transportation Costs to Deliver Finished Fuels from Refineries to Buyers Far and Wide Could Effectively Help Pay For New Micro Oil Refineries to Serve Local Fuel Customers With Lower Fuel Costs

American Oil Refineries Are Running Full Tilt To Meet Insatiable Demand For Gasoline & Diesel at Home & Abroad


Island Nations and Coastal Cities Would Rather Import Crude Oil to Refine Their Own Low-Cost, Clean-Burning Fuels Locally Than Pay Higher Shipping Costs to Import Lower-Quality Finished Fuels From Other Countries

Table 1. Number of world oil Refineries,1996-2008
Year 1996 1999 2003 2008
West & Central Europe 147 142 134 125
Eastern Europe 42 44 46 45
Central Asia 11 13 12 12
Middle East 41 42 44 47
Africa 45 44 44 43
Asia & Pacific 170 189 188 189
North America 184 174 168 164
Latin America 78 77 75 75
Total no. of refineries 718 725 711 700

Since Fuel Demand Is Rising and Fewer Oil Refineries Are Being Built - Oil Producers Could Finance For $7-Billion 100 New MORs That Will Buy 1-million bpd of Crude Oil Worth >$20-Billion/Year

  • Instead of high-sulfur sour crude oil producers losing market share to low-sulfur crude oil competitors due to new international low-sulfur refining regulations...
  • Smaller 10,000-50,000 barrel per day Micro Oil Refineries can produce and profitably-sell low-sulfur refined fuels at a lower-cost than imported refined fuels.
  • To stimulate growth of the Micro Oil Refinery industry and oil sales to new customers/buyers of high-sulfur crude, Oil Producers should finance installation and operation of Micro Oil Refinery facilities to buy more oil from them.
  • Unlike conventional oil refineries that take years, if not decades, to get construction and operating permits (due to local neighborhood and propertyowner protests against the harmful pollutants they bring), Micro Oil Refinery facilities can be quickly permitted because they emit no refining emissions (except for the emissions of a 550-degree F natural gas-fueled heater).
  • Yet, still each Micro Oil Refinery facility will cost-effectively convert high-sulfur crude oil into low-sulfur low-emission bunker fuel, jet fuel, diesel fuel and gasoline - for profitable-sale to local fuel wholesalers, dealers and gas stations.

Micro Oil Refinery Advantages vs Conventional Oil Refinery

  • Environmentally-friendlier closed-loop process cleans up the oil refining process
    • Safer, lower operating pressures ( <20-psi) and temperatures (<550°F) compared to>900-psi and >1,100°F of conventional oil refineries
    • No toxic chemical additives are used in the spray-cracking process nor are any toxic chemicals or emissions released into the local environment.
  • Produces higher quality, higher purity, cleaner-burning low-SOx fuels
    • Low-cost micro oil production output enhances national/economic security by decentralizing availability of vital fuel supplies during service interruptions.
  • Completely automated process with proprietary market price-based refineryscheduling to refine the most valuable fuels at the time based on the quality (asphaltene/paraffin/sulfur-content) of the input crude oil.

Conventional Oil Refinery: Major EMISSION PROBLEMS

Process is supposed to operate in a closed-loop – but add-on Thermal Cracking, Fluidized Catalytic Cracking, Catalytic Reforming, Fluid Coking, Delayed Coking and Sulfur Recovery sub-systems are allowed to vent, flare and emit toxic pollutants (for “emergency”, maintenance and anomalous reasons) too frequently as a by-product of their processes.

California’s March 2019 “Analysis of Refinery Chemical Emissions and Health Effects” confirmed how bad oil refinery emissions have been for years – detecting far more harmful air pollutants being emitted by and traced to multiple oil refinery sites in this landmark environmental study:

These Dangerous Chemicals were detected in the air, downwind of Various California Oil refineries

  • acetaldehyde*
  • ammonia*
  • benzene*
  • 1-3 butadiene*
  • cadmimum*
  • diethanolamine*
  • formaldehyde*
  • hydrogen fluoride
  • hydrogen Sulfide
  • manganese*
  • carbon monoxide (CO) , (VOC),metal HAP, organic HAP
  • napthalene*
  • nickel*
  • nitrogen oxide*
  • polycyclic aromatic hydrocarbons (PAH)*
  • particulate matter (PM)
  • Sulphur dioxide
  • sulfuric acide
  • toluene

Micro Oil Refinery: NO Refining Hydrocarbon Emissions

  • Process is closed-loop. NO hydrocarbons escape into the environment.
  • The only emissions are from combusting natural-gas in standalone heater to produce the 550°F process heat
    • Natural gas combustion by-product is CO2 and water vapor only – no toxic particles.
  • All heat put into the process is recycled and used at different temperatures through various heat exchangers and condensers in the process
  • Light-end gases separated from crude oil are burned as fuel for heat in process heaters.
    • All process heater combustion by-products are disposed of in the residuum solids product.
  • All separated hydrocarbon molecule impurities and contaminants are disposed of in the residuum solids product.

Unique Patents-Pending Innovations

  • Use of Surfsol solvents to precipitate out from crude oil the asphaltenes and liquified paraffins by ambient temperature separation.
  • Use of desulfurization additives with the refined fuels to reduce fuel combustion emissions of SOx and NOx.
  • Use of kinetic fuel-polishing to detach and separate unwanted impurities from hydrocarbon fuel molecules.
  • Novel design of crude oil reactor using unique spray-cracking and vacuum flashing method to separate hydrocarbon molecules in reactor
  • Novel design of horizontal reverse condensate condenser to produce higher-purity fuels with fewer contaminants attached to the hydrocarbons

High-Profit Wholesale Fuel-Sales Model

Refined crude oil price is based on 26-35-40+ API gravity West Texas Intermediate crude oil at $55-$60/bbl oil price.

Based on composition of the input crude oil, salable products derived by processing one barrel of oil can produce:

  • #2 Diesel 35% (14.7 gals) $1.65-$2.25 (wholesale price) = $24.25 - $ 33.08 revenue
  • Jet Fuel 30% (12.6 gals) $1.65-$2.25 (wholesale price) = $20.79 - $ 28.35 revenue
  • Gasoline 20% ( 8.4 gals) $1.65-$2.25 (wholesale price) = $13.86 - $ 18.90 revenue
  • Bunker Fuel 15% ( 6.3 gals) $1.65-$2.25 (wholesale price) = $10.40 - $14.18 revenue

* Note: These are USA wholesale fuel prices – fuel prices on Islands and inland will be higher

  • Per-Barrel Revenue: $69.30 - $94.50
  • Per-Barrel Oil Cost: $55.00 - $60.00
  • Per-Barrel Profits: $14.30 - $34.50
  • Gross Profit Margin: 19.6% - 36.5%

Each Processing Unit will sell its produced-fuels at a wholesale price that enables creation of 100s of local jobs supporting local fuel distributors, tanker truck drivers, maritime shippers and local retail fueling stations to make a retail profit-margin selling our produced fuels to local retail customers, corporate and government fleet owners who need our cleaner fuels.


Total Operating Expenses and Revenue for $70-Million 10,000 Barrel Per Day Crude Oil Processor Facility


Demand For MORs: Mexico Imports 80% of Its Gasoline:

PEMEX Oil Refineries’ Fuel Output-Declines Since 2014 Have Forced Mexico To Import Higher-Cost Finished Fuels From USA

  • Crude oil inputs to Mexico’s petroleum refineries declined for the fifth consecutive year in 2018, falling to nearly 600,000 barrels per day (b/d), a 50% drop from 2013 levels.
  • This decline in crude oil processing has coincided with a decrease in domestic production of the light crude oil that the country’s refineries are better suited to process – despite this, Consumer fuel demand is increasing.
  • Pemex imports of gasoline from USA continues to double, from 230,000 b/d in 2013 to more than 500,000 b/d in 2018, to make up for and offset declines in domestic fuels production at the Pemex refineries.
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  • U.S.-Gasoline-Fuel-Exports-DesignerFuels-by-Larry-Shultz and-Dick-Dyer

30% of total Mexican refining output is high sulfur fuel oil, which reached 160,000 b/d in February 2019. This impacts Pemex's 220,000 b/d Salamanca, 315,000 b/d Tula and 330,000 b/d Salina Cruz refineries, which have a simple configuration that prevents them from efficiently processing domestic heavy Mexican Maya crude oil.

  • Environmental regulators have imposed a sulfur limit on many of those refineries that would require more light sweet crude runs to reduce sulfur in finished fuels.
  • The refineries at Cadereyta, Madero, Minatitlán, Salamanca, Salina Cruz, and Tula will be rehabilitated and a new refinery will be built in Dos Bocas, in the state of Tabasco.
  • 1,863,000 barrels of crude oil will be processed every day by 2022, which will enable the company to produce around 781,000 barrels of gasoline and 560,000 barrels of diesel fuel per day.
  • Petróleos Mexicanos (Pemex), Mexico’s national oil company, owns and operates the country’s six petroleum refineries, which have a combined atmospheric crude oil distillation capacity of about 1.6 million b/d. Pemex’s refineries are mostly configured to process light crude oil. Of its six refineries, three (Minatitlan, Cadereyta, Madero) are equipped with coker units to produce lower-sulfur gasoline from heavy crude oil. The 35% decrease in Mexican light crude oil production between 2013 and 2018 has resulted in limitations on crude oil refinery inputs.

President Obrador’s Desire For Mexico To Refine It Own Fuels Is Thwarted By Unwise Selection Of Old & Obsolete Technologies For Mexico’s “New” Refineries

Flagship $8-billion refinery planned by Mexican President Obrador is Delayed - would have “severe” impact on air quality, and “emissions could spread to nearby towns,” according to environmental study by state oil company Pemex and reviewed by Reuters.

Daniel Basurto, head of Mexican Academy on Environmental Impact research institution, described the estimated emissions as containing “high levels” of toxic air contaminants.

Facility Was Meant to Help Mexico Wean Itself Off Its Growing Reliance On Finished Gasoline and Diesel Fuel Imports from U.S. Oil Refiners

50bn Mexican pesos were allocated for construction of new refinery at Dos Bocas to process 340,000bl/d by 2022, adding extra 170,000bl/d of gasoline and 120,000bl/d of ultra-low sulfur diesel.

Total emissions from the old tech refinery will average:

  • 4,505.1 kilograms per hour (kg/h) of nitrogen oxides
  • 10,770.8 kg/h of carbon monoxide and
  • 62,670.5 kg/h of sulfur dioxide,

Neither Produces Nor Emits Any Such Toxic Oxide Emissions


The U.S. Virgin Islands is committed to attracting new businesses to the Territory and offers tax incentives and economic development packages to companies that locate in the Islands.

Tax Incentives include:

  • 90% Exemption on Local Income Taxes (paid in lieu of Federal Income Taxes)
  • 90% Exemption on Dividends
  • 100% Exemption on Gross Receipts Taxes
  • 100% Exemption Property Taxes
  • 100% Exemption on Excise Taxes
  • 1% Custom Duties
  • Other Free Trade Zone equivalent import/ export tariff relief can be included

These tax incentives are authorized jointly by the United States tax laws (IRC 934 & IRC 937) and the U.S. Virgin Islands tax laws. It is a legitimate tax program designed to attract business to the U.S. Virgin Islands to order to help the Territory diversify its economy

The U.S. Virgin Islands Economic Development Authority (EDA) also offers customized economic development packages to businesses that locate in the Territory. These packages vary but often include bond financing for facility construction and infrastructure improvements and customized tax exemption packages that build on the tax incentives described above.


Fuel De-Sulfurization In Both Refining and Emissions Phases

  • World crude oil sulfur content ranges from 1-5% by weight during the refining process.
  • In the Micro Oil Refinery, sulfur will drop out of the crude oil - ending up in the chemical-rich residuum from the bottom 10% of refined crude.
  • During the final downstream loading phase of operations our patents-pending desulfurization solutions will be added to the produced-fuels being loaded into fuel-tanker trucks and railcars for market.
  • When burned in an engine, these fuels will*:
    • Reduce SOx emissions by up to 40%
    • Reduce NOx emissions by up to 10%
    • Increase burn efficiency in engines
    • Increase fuel lubricity in engines

Crude Oil Can Be Delivered to MORs by Ship, Pipeline or Rail


And MORs Can Be Delivered to the Crude Oil in the Oilfield


Micro Oil Refinery Solves “Negative Pricing” Problem For Oil Well Operators With Too Much Stranded Natural Gas

SOLUTION: Construct MORs In Oil Fields At the Crude Oil Source

Operator benefits from use of its own stranded gas to process its own crude oil

  • As a by-product of crude oil production, Natural Gas is produced – but often there is no local pipeline to take the gas away – so it is stranded at the well).
  • Best use of oilfield Stranded Gas is as Fuel for MOR Process Heaters @550oF (increasing operating profits by reducing cost of Process Heater fuels).

Installing Micro Oil Refineries on Operating Oil Well Sites Enables Oil Well Operators & Royalty Owners to Earn More $ Per BBL

Instead of earning revenues from solely the sale of produced crude oil…


Oil Well Operators/Investors can earn substantial new revenue streams from sale of the low sulfur bunker, jet, gasoline and diesel fuels refined from their own wells’ crude oil.

Oil Well Operators/Investors can make better use of their STRANDED GAS – getting paid for their crude oil PLUS their produced natural gas or casinghead gas to run the process heaters and electric generators of onsite MOR units.


Micro Oil Refineries May Benefit Oil Well Operators More Than Investors or Royalty Owners Based On Definition of “Sales” in Leases

Oil Lease Agreements Do NOT Seem To Obligate Oil Well Operators To Pay Royalties For “Refined Fuels” That May Be Produced On-site At An Oil Well Property By An MOR

Majority of Oil Leases Define “Sales” Subject to Mineral Rights Royalty Payments as:

  • “…proceeds from the sale of all oil, gas, casinghead gas and condensate produced and saved from said Land”
    • This also includes liquid hydrocarbon removal from casinghead gas by absorption, compression or refrigeration equipment to make liquid casinghead gasoline, drip gasoline and natural gasoline derivatives
      • Pay 1/8 - 3/16 Royalty on sale of Gasoline or other products extracted from the gas/casinghead gas – after deducting the amount used for “plant fuel” and/or compression…

These Definitions May NOT Apply to Refining Process of the MOR to Produce Finished Fuels


Wholesale and Corporate Loading Rack Fuel Sales

Each MOR facility includes its own Fuel Loading Racks to dispense metered bunker, jet, diesel and gasoline fuels into authorized buyers’ tanker trucks or unit train tank cars and vehicles.

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International Jet Fuel Prices


Bunker Fuel Market: Low-Sulfur MGO and IFO-380 Prices

Global Bunker fuel market valued at $137-Billion in 2017 -

Expected to reach annual value at $273-Billion by 2025


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Low-Cost High-Efficiency Micro Oil Refinery Systems

3,000-100,000 Barrels-Per-Day Capacities