Mastering Profitability: Refinery Economics and Planning Training Course

Introduction

In the highly dynamic and competitive global energy landscape, the profitability and sustainability of an oil refinery depend not only on operational efficiency but, critically, on astute economic analysis and strategic planning. Refinery margins are constantly influenced by volatile crude oil prices, fluctuating product demand, regulatory changes, and global supply-demand balances. The ability to effectively forecast market trends, optimize crude oil selection, manage product yield slates, and make sound investment decisions is paramount for navigating these complexities and maximizing financial returns.

This intensive training course is meticulously designed to equip participants with a comprehensive and practical understanding of refinery economics and planning. From exploring the fundamental drivers of refinery profitability and crude oil valuation to mastering linear programming (LP) models, investment appraisal techniques, and market analysis, you will gain the expertise to make strategic decisions that enhance financial performance. This empowers you to optimize crude feedstock, refine product strategies, evaluate capital projects, and strategically contribute to the long-term economic success and resilience of refinery assets.

Target Audience

  • Refinery Planners and Schedulers.
  • Business Development Managers in Downstream.
  • Commercial Managers and Analysts in Refining.
  • Process Engineers and Chemical Engineers interested in Economics.
  • Refinery Operations Managers and Supervisors.
  • Supply Chain and Logistics Professionals in Oil & Gas.
  • Financial Analysts and Investment Professionals in Energy.
  • Senior Management and Executives in Refining Companies.

Duration: 10 days

Course Objectives

Upon completion of this training course, participants will be able to:

  • Understand the fundamental economic drivers of refinery profitability.
  • Grasp the concepts of crude oil valuation and product pricing.
  • Analyze the structure and application of refinery linear programming (LP) models.
  • Comprehend the principles of refinery planning, scheduling, and blending optimization.
  • Evaluate capital investment projects using various financial metrics.
  • Develop practical skills in market analysis and demand forecasting.
  • Navigate the impact of regulatory frameworks and environmental policies on refinery economics.
  • Formulate robust strategies for optimizing refinery operations and maximizing financial returns.

Course Content

  1. Introduction to Refinery Economics
  • Overview of the refining value chain.
  • Key economic drivers: crude oil price, product prices, crack spreads, operating costs.
  • Defining refinery margin and profitability metrics.
  • Factors influencing refinery profitability: location, complexity, market access.
  • Global refining capacity and demand trends.
  1. Crude Oil Valuation and Selection
  • Crude oil characteristics and their impact on refinery processing.
  • Crude assay analysis for economic evaluation.
  • Netback valuation of crude oils.
  • Strategic crude sourcing and procurement.
  • Impact of crude quality differentials on refinery economics.
  1. Refinery Linear Programming (LP) Fundamentals
  • Introduction to LP models in refinery planning.
  • Components of an LP model: objective function, constraints, variables.
  • Inputs to the LP model: crude assays, unit yields, operating costs, product specifications.
  • Interpreting LP solutions: optimal crude slate, product mix, unit utilization.
  • Advantages and limitations of LP models in refining.
  1. Refinery Planning and Optimization
  • Strategic planning: long-term capacity and investment decisions.
  • Tactical planning: annual budgets, crude buying strategy.
  • Operational planning: monthly, weekly, daily scheduling.
  • Optimizing crude runs and product yields.
  • Interdependencies between refinery units and their economic impact.
  1. Refinery Scheduling and Blending Optimization
  • Role of scheduling in operational efficiency and profitability.
  • Scheduling of crude receipts, unit runs, and product transfers.
  • Product blending optimization to meet specifications at minimum cost.
  • Tankage management and inventory control.
  • Software tools for scheduling and blending.
  1. Product Pricing and Market Dynamics
  • Global and regional product markets.
  • Pricing mechanisms for gasoline, diesel, jet fuel, fuel oils, etc.
  • Relationship between crude price and product prices (crack spreads).
  • Supply and demand factors influencing product prices.
  • Hedging strategies for managing price volatility.
  1. Capital Investment Analysis in Refining
  • Types of refinery investments: maintenance, debottlenecking, expansion, environmental.
  • Capital budgeting techniques: NPV, IRR, Payback Period.
  • Discounted Cash Flow (DCF) analysis.
  • Risk assessment in investment decisions.
  • Case studies of refinery investment projects.
  1. Operating Costs and Cost Control
  • Components of refinery operating costs: energy, catalysts, chemicals, labor, maintenance.
  • Energy efficiency initiatives and their economic benefits.
  • Catalyst and chemical management for cost optimization.
  • Maintenance strategies and their impact on costs and reliability.
  • Benchmarking refinery operating costs.
  1. Regulatory and Environmental Impact on Economics
  • Environmental regulations: emissions standards, fuel specifications.
  • Carbon pricing and emissions trading schemes.
  • Compliance costs and investment decisions for environmental projects.
  • Impact of regulations on refinery profitability and competitiveness.
  • Role of sustainable practices in long-term economic viability.
  1. Future Trends and Strategic Outlook
  • Impact of energy transition on refinery economics: biofuels, hydrogen, petrochemical integration.
  • Digitalization and AI in refinery planning and optimization.
  • Geopolitical factors and their influence on global refining.
  • Managing market volatility and uncertainty.
  • Strategic positioning of refineries for the future energy landscape.

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

 mastering Profitability: Refinery Economics And Planning Training Course in Nepal
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