Economic Optimization of Refining OperationsEAV/REO

Who should attend?

  • This course allows the participants to acquire the main economic challenges of running a refinery and a better understanding of the oil markets (crude oil and petroleum products) in order to optimize refining operations.
Audience :
  • Engineers, independent consultants, subcontractors or managers from refining who need a better understanding of operation optimization.

Level : Proficiency

Course Content

  • TECHNICAL OVERVIEW

      • Petroleum demand.
      • Crude oils - Qualities and characteristics.
      • Petroleum products - Characteristics and specifications.
      • Refining schemes and processes.
  • PRICE CONSTITUTION OF CRUDE OILS & PETROLEUM PRODUCTS

      • 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

      • 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

      • 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

      • 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?

      • 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

      • Crude oil case study: tools and models used, basic knowledge of linear programming.
      • Case study.

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…

Ways & Means

  • Case studies.
  • Example cost of give-away.
  • Calculation of a working inventory.