A refinerys configuration and performance characteristics are determined primarily by the refinerys location, vintage, availability of funds for. Petroleum economics nckupetroleum economics china 10 100% china national petroleum corp cnpc indonesia 11 100% pertamina pdvsa has a refining joint venture in germany with veba. New york basel tm petroleum refining technology and economics fourth edition james h. It is second only to the chemicals industry in the total amount of energy it consumes. Primary crude oil cuts in a typical refinery include gases, lightheavy naphtha. With motivas system, a refinery handling 240,000 barrels of crude oil per day can reduce energy use by 96 billion btu and sulfuric acid consumption by 2,555 tons per year when producing 10,000 barrels of olefin charge for gasoline production. Economics modeling for petroleum exploration and production projects considering risk and imprecise data thesis pdf available january 2016 with 11,3 reads how we measure reads. Refining is an important part of the petroleum supply chain and its economic structure is different from that in the upstream.
Gary colorado school of mines golden, colorado glen marcel dekker, inc. Adding new capacity or complexity to an existing refinery is also expensive. Fundamentals refinery economics overview course overview course number. Begin to assess if refinery integration will be successful in the future in terms of economics, sustainability and technical risks. What it really measures is whether the refinery will make money at the margin i. Petroleum refinery process economics, 2nd edition, robert e. Petroleum refinery jobs and economic development impact nrel. A random trend approach mathew adagunodo department of economics, c0llege of management and social sciences osun state university, okuku campus, osogbo abstract. Refining crude oil part 2 refining is a capitalintensive industry in a market driven by divergent forcescleaner fuels to address local air pollution. Since eia began tracking refinery data, the new refineries together represent 31% of the garyville refinerys 2014 operational capacity.
Revision of the alkylation process improves refining operations, which. Petroleum refining technology and economics fifth edition. Written by experts with both academic and professional experience in refinery operation, design, and evaluation, petroleum refining technology and economics, fifth editionis an essential textbook for students and a vital resource for engineers. Basic petroleum economics mai 2004 ppm 2nd workshop of the china case study 2 investment decisions investment decisions are among the most important decisions that a companygovernment can take capital intensive irreversible high riskuncertainty. Muhammad rashid usman institute of chemical engineering and technology university of the punjab, lahore. When people, processes and technology work together as a. Feb 17, 2015 new york basel tm petroleum refining technology and economics fourth edition james h.
Pdf environmental impact analysis of the emission from. This chapter is divided more or less into three parts. This latest edition of a bestselling text provides updated data and addresses changes in refinery. Refinery economics and profit improvement by euro petroleum. Dr milosevic is a renowned authority in the field of refinery process optimisation and profit improvement. Pdf economics modeling for petroleum exploration and. It is a broad field with great potential for its study, improvement and control, through technologies that are being created. Classified under sic 29, the petroleum refining industry is. Economic and financial determinants of oil and gas. Maples pennwell books tulsa, okla wikipedia citation please see wikipedias template documentation for.
The main objective of this study is to estimate petroleum products demand using a. The future of oil refining profit margins by brad vantassel in recent years, oil refining margins have been extremely volatile. Chapter 5 the petroleum refining industry industry overview the petroleum refining industry uses the largest quantity of premium fuels in the industrial sector, amounting to 2,7 quads in 1981. Economic impact and small business analysis for petroleum refinery neshap. Maximising distillate yields and refinery economics an. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Petroleum refinery planning and economics springerlink. Optimal modelbased production planning for refinery. The refinery economics course is a comprehensive overview of the fundamentals of the oil refining business. Employee training and development will unlock the companies profitability and reliability.
Other fuels consist primarily of byproduct gas generated in the refining process. This program combines a survey course, designed for anyone interested in the economics of the petroleum refining industry, with a more indepth look at opportunities to improve refinery profit margins. A musthave text for process engineers, refinery schedulers, planners, and managers. The maximum value for net profit is observed for 30 mmtpa refinery and other factors like simple payback too favors refinery with larger capacity. In order to have a competitive edge, a business must make highervalue products using lowercost inputs than competitors. The image below is a schematic flow diagram of a typical petroleum refinery that depicts the various refining processes and the flow of intermediate product streams between the inlet crude oil feedstock and the final endproducts. Many people who work in the oil and petrochemical industries are active in fields. Technoeconomic study of petroleum refinery configurations. Written by experts with both academic and professional experience in refinery operation, design, and evaluation, petroleum refining technology and economics, fifth edition is an essential textbook for students and a vital resource for engineers.
Unknowns about the future growth rate of the world economy, the price of crude oil, government regulations, as well as the economics of alternative transportation fuels are causing many uncertainties for the industry. Petroleum refiners must face billiondollar investments in equipment in order to meet everchanging environmental requirements. Basic refinery economics in many businesses, profits or losses result primarily from the difference between the cost of inputs and the price of outputs. Case studies and exercises derived from present refinery situations.
Oil refineries likely to close across uk and europe, essar. This includes the direct, indirect and induced economic impacts to the local economy. Petroleum refining processes and economics for non technical professionals introduction the success of every company depends of each employees understanding of the key business components. An additional factor in refining economics is crude oil sulfur content, defined to also include. It initially increases drastically for a grassroot refinery of size 6 mmtpa to 18 mmtpa but does not increases in the same proportion when refinery size varies from 18 to 30 mmtpa. Will the myth of ghanaian exceptionalism in africa be sustained or broken. Understanding the business of processing crude oil into fuels and other value added products. Each refinery has a unique physical configuration, as well as unique operating characteristics and economics. Chapter 8 petroleum for the foreseeable future, oil will remain a critical fuel for the united states and all other industrialized nations.
Petroleum refining engineeringii che425pg 2 credit hours 2016 dr. The primary focus will be on how markets, technology, finance and regulations impact the refining business profitability. Maples presents an organized look at the yield data and properties of products from refinery processes and how to use this information in performing process economics studies of various types. The diagram depicts only one of the literally hundreds of different oil refinery configurations. Introduction and fundamentals of refinery economics. It is ideal for refinery planning personnel, refinery engineers, product marketers, and those in refinery coordination groups. The distillation process is one of the most important in the industry. This two day course will offer participants a brief introduction to petroleum refining economics. Key to refinery profit and economics refinery production planning models operation optimization crude selection maximizing profit. A topping refinery is the simplest kind of oil refinery. Refinery configurations and the functions of the main process. The modern petroleum refinery has a series of core process units that create clean gasoline and low sulfur diesel fuel. May 03, 2018 dr milosevic is a renowned authority in the field of refinery process optimisation and profit improvement.
The ease of refining a particular crude plays a role in determining the refinery economics, and. The economics of petroleum refining canadian fuels association. Because the design and construction of new processing units entail several years lead time, refiners are reluctant to commit these dollars for equipment that may no longer meet certain conditions when the units come on stream. Final reportrefinery study report table of contents. The owner of britains second largest oil refinery has warned that closures are likely across the uk and europe in. We would like to show you a description here but the site wont allow us. 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. After the refinery is built, it is expensive to operate. Oil and gas exploration economic model manual version 2. Evaluating the economic performance of the petroleum refining industry is complicated by.
In 2007, over two thirds of refinery output went to. Observation td economics while never far from the spotlight in canada, the subject of crude oil pricing moved squarely onto centre stage late last year due to the growing price discount that alberta oil producers were fetching for. 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 operate on midstream tolling concept plans near bakken production mha clean fuels refinery, 15,000 bpd. Please read this short but informative background on the padd system from the energy information administration originally created during world war ii for the purposes of regional rationing of gasoline supplies, the petroleum administration for defense districts padds are still utilized today to track regional movements of crude oil and particularly petroleum products in the united states. Economic performance and challenges for the future the petroleum refining industry processe s crude oil and produces a variety of products that are used in the transportation, residential, commercial, and industrial sectors of the economy. The removal processes present both technological and economic challenges to refiners. Refinery rot the petroleum and economic analysis report. Ciep is endorsed by the dutch ministry of economic affairs and climate, the dutch ministry of foreign affairs. The first oil refinery unit is crude oil desalting. Optimal modelbased production planning for refinery operation. Oil refineries likely to close across uk and europe, essar energy boss warns. Ara has taken the lead in presenting fuel specification bands known. He has published over 30 technical papers, conducted numerous refinery training courses worldwide, and chaired sessions and panel discussions at major international refining and petrochemical conferences.
Final report subsaharan africa refinery project world bank. Assess cost requirements from the refiners perspective identify the technical risks, research needs and primary cost drivers in using biomass. Read petroleum refining technology and economics fifth edition petroleum refining technology and economics fifth edition when writing can change your petroleum refining technology and economics, fifth edition is an03022017 ghanas petroleum. Doe bioenergy technologies office beto 2015 project peer. Refinery emissions from a competitive perspective vnpi. Petroleum refining processes and economics for non. The crack spread, of course, is not a perfect measure of refinery profitability. Refinery economics and how refinery profitability and performance are assessed.
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