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Refinery Operation Management & Linear Programming

5 days EAV/ROM
Level
Proficiency
Audience
  • Managerial staff, supply planners, oil economists and personnel in charge of supply, planning, programs and product blending.
Purpose
  • This course provides 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,
  • analyze the results of a linear programming model optimization,
  • help optimizing a planning, from preparation of optimal monthly programs up to daily operation scheduling.
Prerequisite
  • Knowledge of refining unit operations.
Ways and means
  • Case studies and exercises derived from present refinery situations.
  • Economic optimization using Excel software and the solver.
  • Quiz.

OIL MARKETS & 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 & 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.).