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Economic Framework of Refining

5 days EAV/EFR
Level
Foundation
Audience
  • Technical, operating and engineering personnel working in the refining industry, trading and commercial specialists, independent consultants, process licensors, catalyst manufacturers and refining subcontractors.
Purpose
  • This course provides a complete view of all the fundamental aspects and challenges of the economic framework in which the refining industry is evolving.
Learning Objectives
  • Upon completion of the course, participants will be able to:
  • calculate product marginal value, refinery margins and process unit margins,
  • identify cost savings in order to improve margins,
  • simulate refinery operations and product blending,
  • simulate and optimize refinery operations, crude oil selection and product manufacturing,
  • analyze the result of a linear programming model optimization,
  • evaluate project profitability.
Prerequisite
  • Basic notions of Microsoft Excel.
Ways and means
  • Case studies and exercises derived from present refinery situations.
  • Economic optimization using Excel.
  • Quiz.

TECHNICAL OVERVIEW 0.25 day
  • Brief technical presentation of the main refining units: distillation, conversion, blending, etc.
  • Refinery scheme evolution.
OIL MARKETS & TRADING 0.25 day
  • Oil supply and demand fundamentals and evolution.
  • Petroleum physical trading (spot, forward).
  • Crude oil and petroleum product pricing: benchmark, quality differential, etc.
  • Financial trading (futures) and hedging strategies for a refiner.
REFINING CONTEXT 0.5 day
  • World petroleum product demand.
  • Refining supply: overcapacity, types and quantity.
  • Main challenges: deep conversion, new product specifications, petrochemical integration, environment, etc.
  • Projects and perspectives.
REFINING MARGINS & COSTS 1 day
  • Refinery margins and costs: definitions and evolution worldwide.
  • Unit margins and intermediate product valuation.
  • Case studies: crude oil arbitrage, Fluid Catalytic Cracking (FCC) unit margin.
REFINERY BLENDING SIMULATION 0.5 day
  • Case study: managing the blending operation of a refinery taking into account the economic and technical (product specifications, capacities, etc.) constraints.
OPTIMIZATION OF REFINING OPERATIONS – LINEAR PROGRAMMING 1 day
  • 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: explanation of a refinery model matrix (material balances, product specifications, utilities consumption, objective function, etc.); team work on the optimization of a cracking refinery and on the result analysis.
OPTIMIZATION OF REFINERY OPERATIONS – SCHEDULING 0.5 day
  • Principles of refining management: constraints, operational 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 (net present value, internal rate of return, etc.).
  • Introduction to risk analysis.
  • Exercises on various investment profitability studies for refineries and petrochemical plants.
2016 course calendar
Language Dates Location Tuition Register
May 23 - 27 Rueil €2,997 Online By email
Sep 26 - 30 Rueil €2,940 Online By email

2017 course calendar
Language Dates Location Tuition Register
May 29 - Jun 02 Rueil €3,140 Online
Sep 25 - 29 Rueil €3,080 Online