Question 1

What are the primary benefits of blending different hydrocarbon products?

Accepted Answer

The benefits of blending are primarily viewed through a financial lens, specifically focusing on improving the netback (the value) on a barrel of oil.

• Financial Uplift: If you can utilize commercial functions like Equalization (EQ) or Weighted Average Differential Factor (WADF), Gravity Banks; blending becomes a math equation. You evaluate what your current crude is worth versus what it could be worth if you blend in specific barrels to increase its market value. The "blend uptick" is often tied to adding a lower-valued commodity to a higher-value feedstock and selling the resulting mixture at a higher-valued outbound commodity price.  In the situation of diluent as a blend to heavy hydrocarbons, replacing higher-valued(cost) diluent with effective lower-valued(cost) diluent results in value accretion for commodity sales.
 • Meeting Specification (“Specs”): Blending is also a crucial operational tool. If a producer has a problem meeting pipeline or delivery point specifications, they can blend different products to resolve the issue internally. For instance, if Site A has a high density (incurring penalties) and Site B has a high deemed butane percentage (also incurring penalties), blending A+B can cut the density of Site A while reducing the butane of Site B, achieving maximum value for both streams.

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This is a simple image of how utilizing the quality of differing hydrocarbons works as we blend, and the specs we have to juggle that are site and pipeline carrier specific. The financial “blend uptick” is tied to either commercial supply deals or by utilizing your own internal products by adding less expensive diluents/feedstocks and selling them all as the higher valued outbound commodity.

Question 2

How do you safely sample hydrocarbons at low or atmospheric pressure when they are prone to flashing off (vaporizing)?

Accepted Answer

We develop and use Standard Operating Procedures (SOPs) and specific equipment to maintain the integrity of the sample, ensuring the "light ends" (the most volatile components) stay in the liquid phase for future testing.

The two main principles are using the right container for the task and understanding the test method that needs to be processed. For low-pressure sampling—drawing from tanks or lines where the process pressure is below the product's bubble point—we predominantly use Manual Piston Cylinders (MPCs). These specialized containers are essential for crude oil sampling in low or atmospheric conditions, representing about 40% of our use in those scenarios, and floating piston cylinders to ensure that the product stays in phase when diluents are being used (Assuming) that the shipping pressure is greater than the equilibrium vapour pressure of the mixed product. Unfortunately if the product has an equilibrium vapour pressure that exceeds the current pressure you will introduce error into your sampling program and can also create under or overestimated assumptions that can be damaging as well. Knowing what to look for is just as important as the sample itself.

Question 3

What critical sampling procedures must be followed?

Accepted Answer

While we can provide turnkey solutions with the option to fully automate, the sampling process itself is accurately governed.

• Standard Compliance: It is critical to strictly follow ASTM (American Society for Testing and Materials) and API (American Petroleum Institute). Automated custody transfer sample systems must follow the procedures outlined in API 8.2 whereas manual sampling is governed by ASTM 4057/5854/8009 and 3700.
 • Expert Training: BLCK Optimization Inc. provides expert procedures and uses them to train customers. This is vital to ensure proper sample representation and consequently accurate data.

Question 4

What equipment is typically used in hydrocarbon blending?

Accepted Answer

All blending operations require a few essential components, with advanced systems adding significant automation and precision:

• Beginner (Ratio) Blending: This requires segregated tankage to store the individual products to be blended. From the tanks, you need designated pumps and meters for each product to allow for simple ratio blending to hit a targeted blend. Many times, clients are performing estimate blends without these core pieces of infrastructure, they are not capturing all the value possible or operating with unknown risk(s). 
 • Expert (Automated) Blending: The system is far more advanced; using inline analyzers to continuously measure the quality (e.g., viscosity) of the blended stream. The analyzers then control the individual pumps and control valves to adjust the blend ratio in real-time maintaining extremely tight product quality specifications.
    • Control Devices: necessary to keep pumps operational within their proper curves for precise flow measurement and pressure control.
    • Data Reporting: Flow computers are required in most oil and gas applications for accurate measurement reporting, calculating shrinkage, and general data reporting.

Question 5

How is the Endress and Hauser (E&H) Promass I used to validate and optimize blending ratios?

Accepted Answer

The Promass I is a specialized meter used specifically for viscosity in blending applications.

• Validation and Optimization: Monitoring the outbound viscosity of the blended stream before delivery to ensure specifications are met. This allows the controls network to speed up or slow down the injection pump (e.g., the C5 diluent pump) in real-time. By preventing over-blending the expensive diluent while ensuring the product is not off-spec, incremental value is created.
 • Risk Reduction: The Promass I provides high-frequency, real-time data; acting as a significant risk reduction device, offering crucial data to the carrier or client in the situation of an off-spec event or pipeline shut-in. This automation reduces manpower needs and maintains value for the client.

Question 6

The Promass I has an API table; how is this used to detect off-spec product?

Accepted Answer

The built-in software combined with the use of API correction tables allows us to achieve high precision density that is used to generate a high precision kinematic viscosity (Dynamic Viscosity/Density) which is a pipeline specification.

1. Enhancing the Unit: The Promass I unit is enhanced from its generic viscosity data by adding multiple precision density and viscosity points in the curve.
2. Custom Model Building: BLCK Optimization builds a custom 16-point viscosity curve using the client's actual product samples, whilst utilizing our expert procedures and testing on our customized SVM (Standard Viscosity Module) with a patent-pending conditioning system.
3. Validation and Integration: Validating the data and updating the model directly into the Promass units using the E&H (Endress+Hauser) software. The key to accurate calculations is proper sample representation and reliable testing results used for the model.

Question 7

What are the main considerations when choosing between viscosity-driven blending and simple mass flow-ratio control?

Accepted Answer

The decision is focused on the financial risk tolerance of the client, contractual risks involved, and operational constraints:

• Risk Assessment:
    • How precise are the customer contracts and the delivery point specifications?
    • What is the financial impact of over-blending even by a low percentage of 1% or 2%?
 • Ratio Control Limitations: Mass flow ratio control can work if the base products never change and lab calculations repeatedly prove accurate. In many cases, other product quality specs need to be managed as well, not just viscosity.
 • Viscosity Control Advantage (Promass I): If you are currently purchasing flow meters for control and reporting (which you need for proper ratio blending), investing in one that provides both can provide increased value. By leveraging the inline viscosity measurement of the Promass I, results are instantaneous, reduce third-party lab fees, built-in guard rails to the ratio control, and effectively de-risk both the operational and commercial goals.

Question 8

How much does the management of crude quality matter for heavy oil producers at the terminal, lease, or battery level?

Accepted Answer

Crude oil quality management has a significant impact on both operational performance and financial outcomes at every stage of production.

Once crude oil enters a pipeline system, it becomes subject to strict quality specifications and regulations. Incorrect management of parameters such as diluent ratios, vapor pressure, or viscosity can lead to:

• Downgraded product classifications
 • Increased transportation costs
 • Forced corrective blending
 • Curtailments or operational restrictions
 • Damaged equipment

Quality decisions made upstream directly influence how efficiently and effectively crude oil travels through the value chain. Proper quality management protects netback, maintains flexibility, and reduces avoidable losses thereby increasing profitability.

Question 9

What is TVP, VPCR, and RVP? And which one actually matters for staying in spec?

Accepted Answer

The most important factor is understanding what your specific pipeline operator requires. In most Canadian crude systems, the governing specification is VPCR (ASTM D6377).
Here’s a simple breakdown:
 • VPCR (ASTM D6377): The correct pipeline compliance test for crude oil. It prevents flashing and accurately represents in-line behavior.
 • RVP (ASTM D323): Primarily used for gasoline. It exaggerates vapor pressure and is not suitable for crude oil.
 • TVP: Often misused as a general term. True Vapor Pressure is a theoretical value, not a pipeline compliance methodology.

Understanding the correct test method and measuring it properly is essential to staying compliant and avoiding unnecessary risk.

Question 10

How does viscosity affect pipeline specifications and what producers can transport?

Accepted Answer

Viscosity directly impacts pipeline hydraulics, pressure drop, pump horsepower, and throughput. Most pipelines impose maximum viscosity limits to protect system integrity and ensure safe operation.

Improper viscosity control can result in:

• Excessive diluent usage
 • Increased OPEX
 • Pipeline penalties or corrective charges
 • Constraints in capacity

As diluent is an added cost to crude oil movements, every unnecessary molecule added reduces the calculated netback for the commodity owner. Effective viscosity management balances compliance with cost efficiency and allows crude oil to be transported safely and economically.

Question 11

How do you balance maximizing diluent blending while staying compliant with VPCR and viscosity limits?

Accepted Answer

The balance is critical and the margin for error is small.

Successful optimization requires:
 • Dynamic modeling, not fixed blend ratios
 • Real-time measurement of VPCR, viscosity, and density
 • Temperature and seasonal corrections
 • Consistent sampling and analyzer integrity

The most effective approach combines:
 • A structured corporate quality compliance program
 • Continuous measurement supported by advanced process control

Together, these systems allow operators to maximize blend limits safely while maintaining compliance and providing safe operations and maximum economic benefit.

Question 12

What tools and analyzers are used to manage crude quality in real time?

Accepted Answer

Modern quality programs typically integrate several technologies:
 • Primary flow measurement (Coriolis, ultrasonic, PD meters)
 • Inline quality analyzers (vapor pressure, viscosity, spectroscopy, X-ray)
 • Composite sampling systems
 • Supervisory software and QA/QC automation

BLCK Optimization is technology-agnostic. We design systems using the best combination of tools for each operation. In many cases, optimization begins with auditing existing equipment rather than replacing it.

Question 13

From an economic standpoint, how significant is optimized versus non-optimized blending?

Accepted Answer

The difference is often substantial. Optimized quality programs routinely deliver:

• Efficient payback of deployed capital
 • Ongoing value creation
 • Reduced Operating expenses
 • Increased netback return

In many operations, 5–20% of potential value remains hidden due to outdated assumptions, unverified analyzers, or inconsistent sampling. A properly optimized program consistently delivers operations that are safe, ratable, and predictable resulting in increased profitability.

Question 14

How does viscosity reduction impact pipeline drag and throughput economics?

Accepted Answer

Reducing viscosity improves more than just blend economics. It also reduces pipeline drag, pump energy requirements, and mechanical strain. These benefits lead to:

• Lower power consumption
 • Reduced equipment wear
 • More stable operations
 • Long-term cost savings

As energy costs rise, viscosity optimization will play an increasingly important role in overall asset economics.

Question 15

How can analyzer drift or error create hidden losses for producers?

Accepted Answer

Analyzer drift is one of the most common sources of unrecognized value loss. When analyzers lose accuracy due to calibration drift, fouling, or inconsistent sampling, operators may unknowingly:

• Over-dilute product
 • Under-dilute and incur penalties
 • Miss optimization opportunities

These losses are “hidden” because they don’t appear as line items, they show up as reduced netback. Strong QA/QC programs and disciplined maintenance are essential to protecting value.

Question 16

Can the wrong instrument or blending strategy damage project economics?

Accepted Answer

Using the wrong analyzer, control philosophy, or test method can create false confidence in quality data. A common example is using RVP-based control when VPCR is the required pipeline specification. Mismatches like this can lead to:
 • Compliance failures
 • Forced corrective blending
 • Reduced netbacks
 • Operational disruptions
Selecting fit-for-purpose technology from the start is critical to protecting both operational integrity and economics.

Question 17

What technologies are emerging to automate and continuously optimize crude quality?

Accepted Answer

The industry is moving toward advanced process control and automation. As measurement reliability improves, the focus shifts from simply monitoring quality to actively optimizing it in real time. This evolution enables:

• Automated blend adjustments
 • Reduced reliance on manual decision-making
 • Continuous alignment of safety, compliance, and economics

Question 18

For producers looking to improve their optimization programs, where should they start?

Accepted Answer

The best place to start is with alignment and assessment.

• Engage field teams early and position optimization as support, not disruption.
 • Review pipeline Rules & Regulations (tariffs and current quality practices)
 • Identify gaps in sampling, analyzers, calibration, and procedures

From there, build a roadmap that progresses from compliance to controlled optimization and ultimately advanced process control.

Our Mission

How We Optimize.

Holistic Site Review & Assessment

Optimization Strategy Development

Product & Process Upgrades

President & Founder

Jarret Torris

Executive Chairman

Mike Mikuska

Chief Integration Officer

Ken Maclean

Chief Financial Officer

Joel Douglas

VP, Operations

Nik Snyder

The Leaders of BLCK.

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