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Economic Optimization of Refining Operations

5 days EAV/REO
Level
Proficiency
Audience
  • Engineers, independent consultants, subcontractors or managers from refining who need a better understanding of operation optimization.
Purpose
  • 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.
Learning Objectives
  • 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, …
Prerequisite
  • 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
  • Definitions.
  • 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.
  • Examples.
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.
2016 course calendar
Language Dates Location Tuition Register
Dec 05 - 09 Rueil €3,030 Online By email
Dec 12 - 16 Rueil €3,120 Online

2017 course calendar
Language Dates Location Tuition Register
Dec 04 - 08 Rueil €3,180 Online
Dec 11 - 15 Rueil €3,270 Online