Refinery Operation Management & Linear ProgrammingEAV/ROM

Who should attend?

  • This course provides an in-depth understanding of the techniques used for decision-making operations concerning supply and refining.
Audience :
  • Managerial staff, supply planners, oil economists and personnel in charge of supply, planning, programs and product blending.

Level : Proficiency

Course Content

  • OIL MARKETS & TRADING

      • 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

      • 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

      • 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

      • 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

      • 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.).

Learning Objectives

  • Upon completion of the course, participants will be able to:
  • optimize refinery operations, crude oil assessment 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.

Ways & Means

  • Case studies and exercises derived from present refinery situations.
  • Economic optimization using Excel software and the solver.
  • Quiz.