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Planning & Economics of Refinery Operations

Planning & Economics of Refinery Operations

4 days
EAV/PERO
Sessions
This course is not scheduled.
Who should attend?

Audience

    • Technical, operating and engineering personnel working in the refining industry, trading and commercial specialists, independent consultants, process licensors, catalyst manufacturers and refining subcontractors.

Level

  • Proficiency
  • 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.
Course Content

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.
Ways & Means
  • Case studies and exercises derived from present refinery situations.
  • Economic optimization using Excel.
  • Quiz.