The refinery economics course is a comprehensive overview of the fundamentals of the oil refining business. Managing the disconnect in the currency risk management strategy and financial reporting 2. This guide introduces energy efficiency opportunities available for petroleum refineries, beginning with descriptions of the trends, structure and production of the refining industry and the energy. This oneday workshop is designed to follow on from our popular fundamentals of petroleum refining course, by focusing on the topics of refinery economics and blending. Oil refineries essentially serve as the second stage in the production. For example, refineries are typically designed to accommodate a certain type of crude oil heavy, intermediate, or light. This paper presents an analysis on hydrogen economics focusing on automobile fuel production in an oil refinery in japan. Refinery equipment of texas refinery equipment of texas 400 central drive, coldspring, texas 77331 83265778, email. Although the us chemical process industires cpi, reduced its emissions by 56. The crude oil feedstock is heated to 65180 c to reduce viscosity and surface tension for easier mixing and separation of the water. Technology and economics, fifth edition kindle edition by gary, james h. Understanding the business of processing crude oil into fuels and other value added products. Request pdf refinery economics the supply and demand for crude oil and petroleum products are key factor in determining the status of the world economy. Fractionation distillation is the separation of crude oil in atmospheric and vacuum distillation towers into groups of hydrocarbon compounds of differing boilingpoint ranges called fractions or cuts.
Sanders, in chemical process safety fourth edition, 2015. Economics of process analysis for efficient utilization of crude oils maximization of the refining margin forms the platform of todays refinery economics. Final report refinery study report list of exhibits. Specialists in the oil and gas industry believe that the economics of a topping unit mini refinery are not comparable to full conversion complex refinery. The cost can be reduced when fully utilizing the refinery facility for oil refining, pipes and vessels for large batch distribution and transportation. Economics of process analysis for efficient utilization of. An oil refinery or petroleum refinery is an industrial process plant where crude oil is transformed and refined into more useful products such as petroleum naphtha, gasoline, diesel fuel, asphalt base, heating oil, kerosene, liquefied petroleum gas, jet fuel and fuel oils.
Economics can drive refiners towards sending heavy ends to cokers or selling the asphalt as a fuel oil blendstock. This two day course will offer participants a brief introduction to petroleum refining economics. Use features like bookmarks, note taking and highlighting while reading petroleum refining. Economics and technology 4 am0319 environmental emissions from refineries continue to be a major problem. Many people who work in the oil and petrochemical industries are active in fields. Oil refineries underpin modern day economics, finance and engineering without their refined products the world would stand still, as vehicles would not have petrol, planes grounded without kerosene and homes not heated, without heating oil. The diagram depicts only one of the hundreds of different configurations. Optimizing the hedging strategy for oil refining companies. An overview of refinery operations, safety, processes and economics become familiar with the equipment of a refinery become familiar with the refinery flow sheets become familiar with refinery margins and economics. All other products were to meet quality and quantity requirements.
Refinery decision cycle what are the characteristics of the steps in this process. An industrial plant that refines crude oil into petroleum products such as diesel, gasoline and heating oils. Basic refinery economics in many businesses, profits or losses result primarily from the difference between the cost of inputs and the price of outputs. He has more than 12 years of experience in the petroleum refining and palm oil industries. Refining adds value by converting crude oil which in itself has little enduse value into a range of refined products, including transportation fuels. It is not unusual for a large refinery site to have 100,000 distinct measurements. Analysis on hydrogen economics focusing on automobile fuel. His consulting project experience includes market entry studies, refinery modeling, refinery competitive analysis and economic modeling. A topping refinery is the simplest kind of oil refinery. It discusses the science of petroleum economics, starting from squareone, the tools of the trade that petroleum economists use, day in and day out, and also its application. Originally built in 1955 as a shell oil refinery the tesoro anacortes, washington, refinery is located about 70 miles north of seattle. Understanding the incidence of currency risk in oil refining operations currency risk in oil refining operations results from the. Download pdf petroleumrefineryprocesseconomics free.
Optimizing the hedging strategy for oil refining companies 7 2. It dictates refineries to maximize the production capacity of highly demanded refinery products, while reducing the cost of their crude oil feed. Hydrogen is a promising automobile fuel and the oil refining industry would play a big role in producing, distributing and retailing it because the industry constructed the supply chain of. In this thesis i study the refinery as a financial asset. Petrochemicals feed stock like ethylene and propylene can also be produced directly by cracking crude oil without the need. It does not include any of the usual facilities providing utilities such as steam, cooling water, and electric power as. Holbrook abstract the following aspects of refinery economics are covered. Petroleum refinery oil refining seminars on avu, fcc, reforming, hydrotreating coking. A study in the financial valuation of a topping oil refinery. The primary economic objective in refining is to maximize. Pdf petroleum refining technology and economics fourth.
The yield for this feed is the same as regular feed. Section ii presents an executive summary of the study, which provides an overview of the. The image below is a schematic flow diagram of a typical oil refinery depicting various unit processes and the flow of intermediate products between the inlet crude oil feedstock and the final products. An oil company has estimated the following cash flow for an oil project. The temperature is limited by the vapor pressure of the crudeoil feedstock. Simple refineries near oil production kinder morgan, galena park, tx 50,000 bpd condensate splitter dakota prairie refinery 20,000 bpd bakken crude topping unit with diesel hydrotreating meridian energy group near belfield, nd o 49,500 bpd refinery o originally expected 2018 startup may. In order to have a competitive edge, a business must make highervalue products using lowercost inputs than competitors. Oil refineries produce valueadded petroleum products from crude oil. The program begins with a detailed discussion of crude oil and products, including commercial transactions, which may have a large impact on refinery economics. Refining operations petroleum refining processes and operations can be separated into five basic areas.
The refinery configurations, which would satisfy a minimum investment, when producing a high volume of gasoline with and without a low sulfur content limitation of the fuel oil. Petroleum refining processes and economics for non. Download petroleumrefineryprocesseconomics ebook pdf or read online. Refiners dont always create asphalt in the refining process. Refinery economics are largely impacted by three basic factors. An average refinery would follow what is known as the 321 crack spread, meaning for every three barrels of oil the refinery produces an equivalent two barrels of gasoline and one barrel of distillate. This chapter is divided more or less into three parts.
The crack spread is the difference in the sales price of the refined product gasoline and fuel oil distillates and the price of crude oil. Liquid fossil fuel process plant management has been the bane of nigeria for the past two decades as our four refineries were run down. The presentation then moves into the refinery to explore the effects of crude oil type on refining yields and to examine the interactions between crude oil selection and refinery. Page 5 of 9 the refinery products the usual products from a straight run minirefinery are naphtha, diesel and fuel oil.
Petroleum refinery process economics download petroleum refinery process economics ebook pdf or read online books in pdf, epub, and mobi format. Chadwick february 19 77 a private report by the process economics program. Refining process services was founded in 1985 to meet the need for an independent source of refining technical consulting and training services. Environmental protection agency program helping organizations and individuals fight climate change through superior energy efficiency. Click download or read online button to petroleum refinery process economics book pdf for free now. Fundamentals refinery economics overview course overview course number. Petroleum refining processes and economics for non technical. An average refinery would follow what is known as the 321 crack spread, meaning for every three barrels of oil the refinery produces an equivalent two. Analysis on hydrogen economics focusing on automobile. Surging oil sands production is projected to more than double canadas crude output between now and 2030.
The refinery also manufactures heavy fuel oils, liquefied petroleum gas, and asphalt. Starting a private mini crude oil refinery business. The primary focus will be on how markets, technology, finance and regulations impact the refining business profitability. Meanwhile, canadas upstream crude oil industry is growing. Recently several crude oil to chemicals coc projects have been announced in china and saudi aiming at producing maximum 40% per barrel of oil to targeted chemicals. Petroleum refinery process economics pdf free 11 download. Profitability is thus determined by several different variables. Petroleum refinery planning and economics springerlink. Px projects in china were driven by three pet producers, hengli, zhejiang, and shenghong, to back integrated its px supply starting from crude oil refinery. An introduction to petroleum refining and the production of ultra low sulfur gasoline and diesel fuel prepared for. The first part section refinery operation planning deals with the planning of a refinerys operation, which includes its optimized crude runs, product slate, and any process expansion or debottlenecking that may be required to meet this optimized operation. Krishnan is a senior consultant in the oil, midstream, downstream and chemicals team in asia. Asphalt is considered a secondary commodity as it is produced through refining crude oil primary commodity.
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