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Refinery Operation Management and Linear Programming

5 days EAV/ROM
  • Managerial staff, supply planners, oil economists and personnel in charge of supply, planning, programs and product blending
  • To provide an in-depth understanding of the techniques used for decision making operations concerning supply and refining
Learning Objectives
  • Upon completion of the course, participants will be able:
  • to optimize refinery operations, crude oil selection and crude oil selection
  • to analyze the results of a linear programming model optimization
  • to help optimizing a planning, from preparation of optimal monthly programs up to daily operation scheduling
Ways and means
  • Case studies and exercises derived from present refinery situations
  • Economic optimization using Excel software and the solver
  • Quiz

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 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
Optimization of refining operations – Linear programming 2.5 days
  • 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: parametrization and preparation 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 1 day
  • Principles of refining management: constraints, operations organization
  • Monthly program to daily operations
  • Optimization of margins from different process units
  • Case study: management of typical sequential constraints (delays, processing problems, etc.)