15 days EAV/DEM
- Professionals from the refining, the petrochemicals and the distribution sectors in a management position where they need to deepen their understanding of all the essential economic aspects as well as the management tools used in the oil downstream sector.
- This course provides participants a complete view of the economic principles of the downstream sector as well as the methods necessary for the decision-making processes.
- Upon completion of the course, participants will be able to:
- analyze the economic fundamentals of the energy scene, with a particular attention to the importance of markets dynamics and its impact on the economics of refining, petrochemicals and distribution,
- evaluate the economic values of various intermediate or semi-finished products,
- use linear programming models and management tools in order to optimize refining and petrochemical operations,
- evaluate project profitability,
- take part in the development of a marketing strategy,
- analyze the supply chain of an industry.
- Basic notions of Microsoft Excel.
TRADING 2 days
- Oil supply and demand fundamentals.
- Petroleum physical trading.
- Financial trading (futures), markets place, derivatives.
- Hedging and strategies.
REFINING & PETROCHEMICALS ECONOMICS 3 days
- Brief technical overview of the main refining and petrochemical processes.
- World refining and petrochemicals demand.
- Evolution of the downstream supply: refining overcapacities, production nature and quantity.
- Main challenges for the refining sector: deep conversion, new product specifications, petrochemical integration, environment, etc.
- Refining margins and costs.
- Case study: valuation of intermediate products of a FCC (Fluid Catalytic Cracking) unit.
- Case study: refinery blending simulation.
- Main characteristics of the petrochemical business: economic drivers, cyclic behavior, etc.
- Case study: steam cracker economics.
OPTIMIZATION OF REFINING OPERATION - LINEAR PROGRAMMING 2.5 days
- Linear programming (LP) principles: linear equation, objective function, profit maximization or cost minimization, Simplex method, graphic interpretation, etc.
- Analysis of the LP results: optimum properties, marginal costs, domain of validity of the results, etc.
- Case study on Excel: introduction to the preparation of a refinery model matrix (material balances, products specifications, utilities consumption, objective function, etc.); team work on the optimization of a cracking refinery.
REFINING OPERATIONS PLANNING - SCHEDULING 1.5 days
- Principles of refining management: constraints, operations organization.
- Monthly program to daily operations.
- Optimization of margins from different process units.
- Case study: management of typical sequential constraints (delays, processing problems, etc.).
INVESTMENT PROFITABILITY STUDIES 1 day
- Value creation and capital cost, cash flows, discounting principle and inflation impact.
- Standard global profitability analysis: cash flow schedule, economic criteria.
- Introduction to risk analysis.
- Exercises on various investment profitability studies for refineries and petrochemical plants.
STRATEGIC MARKETING 2 days
- Marketing role in a firm and in the economy, marketing organization.
- Measuring the firm's competitiveness.
- Designing a development strategy.
SUPPLY CHAIN MANAGEMENT 3 days
- Supply chain principles: definitions, review of activities, interactions with consumers.
- Storage management: "pull" and "push" modes, basic tools for stock management, technical and economic aspects.
- Supply chain design and methodological approaches: analysis of the industry (organization, process, location).
- Benchmarking context.