5 days EAV/REO
- Engineers, independent consultants, subcontractors or managers from refining who need a better understanding of operation optimization.
- This course allows the participants to acquire the main economic challenges of running a refinery and and a better understanding of the oil markets (crude oil and petroleum products) in order to optimize refining operations.
- Upon completion of the course, participants will be able to:
- understand the economic issues and the main parameters influencing refining profitability,
- develop a working knowledge of management tools and models used in the industry,
- get a grasp of the input/output balances of the refining industry,
- calculate product value (intermediate, semi-finished or finished products), refinery margins and process unit margins; how cost and margins compare; how to simulate refinery operations and product blending,
- understand and analyze the refining margin from an operational point of view, considering the contribution of each unit operation,
- understand the notion of break-even point (as an evaluation tool for assessing the resilience of a refinery to economic changes),
- comprehend ways to optimize refinery operations, crude oil selection and product manufacturing, in order to improve profitability,
- gain a working knowledge in decision-making regarding future investments,
- better understand and use the various elements that contribute to refining margin improvement, such that: blending optimization, energy optimization, maintenance management, inventory management, analysis, performance monitoring, …
- Basic notions of Microsoft Excel.
Ways and means
- Case studies.
- Example cost of give-away.
- Calculation of a working inventory.
TECHNICAL OVERVIEW 0.25 day
- Petroleum demand.
- Crude oils - Qualities and characteristics.
- Petroleum products - Characteristics and specifications.
- Refining schemes and processes.
PRICE CONSTITUTION OF CRUDE OILS & PETROLEUM PRODUCTS 1 day
- The different types of crude oils and their interactions.
- Notions of incoterms (FOB, CIF, …).
- Price determination from reporting agencies (e.g.: Platt’s and Argus).
REFINING MARGINS & COSTS 1 day
- Different types of margins and indicators.
- Principle of estimation of the real margin in a refinery from the reference indicator.
- Refining variable and fixed costs.
- Definitions and principle of a refinery break-even point.
REFINING MANAGEMENT ITEMS 1 day
- Economic impact of unit yields.
- Product valorization challenges.
- Notion of constraint cost.
- The use value of intermediate, semi-finished and finished products.
VALUE & SIMULATION OF INTERMEDIATE & SEMI-FINISHED PRODUCTS 0.75 day
- Value of a product depending on its use and the economic context.
- Notion of marginal cost, netback value.
- Capital gain or loss of separation, product blending or transformation operations; examples.
- Case study of the premium “straight-run” for atmospheric residues.
HOW TO IMPROVE THE REFINING MARGIN DAILY? 0.5 day
- Blending optimization.
- Energy integration, maintenance management.
- Monitoring and control of consumption (energy, chemicals, catalysts) and losses.
- Inventory management, working inventory.
- Organization, reactivity, employees training.
- Implementation analysis and performance monitoring tools (KPI: Key Performance Indicators), …
OPTIMIZATION OF THE FEEDSTOCKS – KEY CRITERIA 0.5 day
- Crude oil case study: tools and models used, basic knowledge of linear programming.
- Case study.