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Economic Framework of Refining

5 days EAV/EFR
  • Technical, operating and engineering personnel working in the refining industry, trading and commercial specialists, independent consultants, process licensors, catalyst manufacturers and refining subcontractors
  • To enable delegates to get a grasp 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
  • to identify cost savings in order to improve margins
  • to simulate refinery operations and product blending
  • to simulate and to optimize refinery operations, crude oil selection and product manufacturing
  • to analyze the result of an linear programming model optimization
  • to do project profitability evaluation
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 and 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 and 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