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Planning & Economics of Refinery Operations

4 days EAV/PERO
Level
Proficiency
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 better understanding of the essential elements of refinery operations and investment economics, to review the various parameters which affect refinery profitability and to develop a working knowledge of the management tools used in the refining industry.
Learning Objectives
  • Upon completion of the course, participants will be able to:
  • assess the latest trends in product specifications, and refining schemes,
  • calculate product value, refinery margins and process unit margins,
  • simulate and to optimize refinery operations, crude oil selection and product manufacturing,
  • analyze the results of an linear programming model optimization,
  • evaluate the profitability of a new process unit.
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, etc.
  • Refinery scheme evolution.
REFINING INDUSTRY 0.5 day
  • World petroleum product demand and evolution of the crude oil supply.
  • Refining supply: overcapacity, types and quantity.
  • Main challenges: deep conversion, new product specifications, petrochemical integration, environment, etc.
  • Projects and perspectives.
REFINERY MARGINS & COSTS 0.75 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.
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.
2017 course calendar
Language Dates Location Tuition Register
Oct 17 - 20 London £3,300 Online