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Economic Optimization of Refining Operations

5 days EAV/REO
  • Engineers, independent consultants, subcontractors or managers from refining who need a better understanding of operation optimization
  • To allow the participants to acquire the main economic challenges of the running of a refinery and to understand 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
  • to develop a working knowledge of management tools and models used in the industry
  • to get a grasp of the input/output balances of the refining industry
  • to 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
  • to understand and analyze the refining margin from an operational point of view, considering the contribution of each unit operation
  • to understand the notion of break-even point (as an evaluation tool for assessing the resilience of a refinery to economic changes)
  • to comprehend ways to optimize refinery operations, crude oil selection and product manufacturing, in order to improve profitability
  • to gain a working knowledge in decision-making regarding future investments
  • to 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,...
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 and 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 and 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 and simulation of intermediate and 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
Dec 12 - 16 Rueil €3,120 Online