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RFTS - Economics of Refining and Oil Quality

2011 Course Dates :  TBC 

Singapore

How do I go about selecting a crude oil? Will a capacity constraint be generated by my selection and how do I go about mitigating it? I know this crude oil is potentially problematic, but how might I overcome the problem it presents? Is spiking the crude oil or a recon crude an option? What effect does the refinery configuration have on their ability to process this crude oil and the associated economics? What options are there on cut points and operating severities? How do I select competing reformer feedstocks? How do I calculate the refinery margin, fixed and variable operating costs? What might my counterparty know about these aspects of crude oil buying, selling and processing that I don’t? What advantage with that give him in negotiations?

These and many other questions arise if you are involved in the purchase, sale or trading of crude oils and refinery feedstocks. The ability to recognize the technical problems, to evaluate the economics of the associated opportunities and to influence decisions on sales and purchases of crude oils and refinery feedstocks is an essential capability for many working in the refinery supply chain and associated areas.

What are the key specifications in the major product groups, how are they measured and are the associated measurement errors? What is the significance to a buyer, seller or trader of such errors? What is the meaning of Octane and how much does octane improvement cost? How do I select the most economic diluent? How do I calculate a blend by weight and by volume? How do I calculate the cost of sulphur reduction? How do I assess the value of quality slacks and take advantage of existing slacks in my products? What might my counterparty know about these aspects of refined products buying, selling and trading that I don’t? What advantage with that give him in negotiations?

Again, a series of questions and problems that frequently arise and need to be competently addressed by all those involved in product supply chain matters, the purchase, sale and trading of refined products and supply demand balancing activities.

The capabilities and the wide range of experience of Invincible Energy’s staff are brought to bear on all the above through this 2 day course. The vehicle for learning is a Processing Deal that has recently been agreed at one of Invincible’s fictional refineries. The Deal not only has the advantage of enabling this highly flexible complex refinery to run at near capacity, but also highlights how the capabilities of its hardware and the qualities of its product pools generate additional opportunities for profit. Participation in the course and its syndicate work creates a capability in delegates to identify, evaluate and fully exploit opportunities that realize financial gain from their everyday business dealings in both the feedstock and refined product spheres of the oil supply chain.

As with all Invincible training, the course will consist of a mixture of formal lectures, exercises and plays demonstrating the main commercial aspects of the refining/oil trading interface. A number of exercises are performed in syndicates, with comprehensive debriefs studying the consequences of the decisions made. The course entails a high degree of participation from delegates and there is a high staff-to-pupil ratio.

Course fees: TBC

Early Bird and Team Fee discounts available on application

 
Course Timetable

Day 1 Crude Oil evaluation, capabilities and limitations of the main refining processes; the processing deal;  refiners' flexibilities and operating costs; crude oil blending;  speciality crudes;  other feedstocks;  reprocessing costs;  the cost of quality;  key product quality parameters (Naptha and Mogas).

Day 2  Key product quality parameters (middle distillates and fuel oils); blending; refinery optimisation and scheduling; quality slacks; additives; feedstock and product contaminants; selection of cutter stock; petrochemical return streams; refinery operational limitations;  the role of hydrogen; refinery fuels.

What will you learn?

On completion of this course you will be able to:

• Assess the value of a crude oil and a refinery feedstock..
• Differentiate between cost and value of refinery feedstocks, intermediates and products.
• Perform linear and non linear blending calculations.
• Calculate the cost of change in octane number and vapour pressure
• Assess the overall (fixed and variable) refinery operating cost as well as fuel consumptions
• Select the optimum economic diluent from a pool
• the cost of sulphur reduction in gasoil
• the economics of reformer feedstock selection
     

You will understand:

• The main specifications of refined products and their cost / value
• How refined product quality is measured, the inherent errors and the significance of these errors
• What is meant by refinery configuration, its impact on refining economics and hardware limitations
• The practical impacts of scheduling on refinery profitability
• The implication of cut points and severity on product quality
• The advantages arising from crude oil blending, the cost of crude changeover and reprocessing
• the fundamentals of refinery macroeconomics
• the structure and economics of a processing deal
   

Who should attend?

• all involved in the operation and management of crude oil, feedstock or refined product supply supply chains
• crude oil and feedstock traders, managers an analysts
• refined product traders, managers and analysts
• key staff in organizations primarily concerned with supply balancing, surplus disposal and deficit purchasing
• key staff in government, banking and regulatory authorities requiring an insight into the subject
• Refinery schedulers, economists and performance analysts