Oil Refinery Cost Management Training Course

Introduction

In today’s modern refining environment, the use of innovative cost management practices that can accurately allocate refined intermediate and product manufacturing costs, may assist refiners to optimize their production, improve their profitability and competitiveness. Cost management is concerned with the process of planning and controlling the budget of a project or business. Cost management can also be applicable to refinery management systems and it can be a very important part of the refinery production processes. It must be appreciated however, that production costs are a synthetic index that can reflect the effectiveness of production planning and scheduling. How to successfully control and manage production costs is a complex set of issues for refineries but it can be used to monitor and control refinery unit performance. This training course on Oil Refinery Cost Management will assist in creating cost structures for refinery process units and assist in allocating costs to individual refinery intermediates and finished on-specification products. Important aspect of process plant optimization is related to system energy management and energy consumption reduction. Furthermore, process monitoring that includes advanced controls and new technologies also present opportunities for refinery optimization. Additional opportunities can include Crude Unit Utilization with opportunity crudes of lower quality and price. This training course will assist in examining individual process equipment such as atmospheric and vacuum distillation equipment, catalytic and thermal processes, heaters, furnaces and steam boilers, heat exchanger integration, rotating equipment efficiency including pumps and compressors. Oil refinery cost management will provide a comprehensive review of the various aspects of refining cost management, which is the cornerstone for a viable plant profitability and optimization.

Objectives

By the end of this training course, participants will be equipped with the knowledge to conduct the following activities in their refineries:

• Determine by various techniques the cost of individual streams in the refinery and individual processes
• Use these costs to calculate the enhancement potential for blending lower cost, on-specification products
• Optimize refinery utility systems such as cooling water, steam and power generation
• Apply energy saving techniques to develop energy-saving projects
• Enhance the production planning activities of the refinery via cost management

Training Methodology

This is an interactive course. There will be open question and answer sessions regular group exercises and activities videos case studies and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This training course on Oil Refinery Cost Management is designed to provide technical and practical approaches to executing a petroleum refinery related cost management. This training course is suitable for a wide range of professionals but will greatly benefit:

• Refining Oil & Gas Field Engineers
• Process Plant Energy Managers / Coordinators
• All Professionals involved in Production, Planning, and Scheduling
• Blending Professionals
• Financial Analysts

Course Outline

Day 1: Overview of Cost Management

Introduction to Cost Management

• Resource Planning
• Cost Estimating
• Cost Budgeting
• Cost Control
• Energy and its Effect on Refinery Profitability
• Refinery Material & Energy Balance
• Energy Benchmarking
• Fuel, Power and Steam Costing Methodology

Day 2: Crude Oil Refining

• Types of Refinery
• Key Process Units
• Refinery & Process Utilization
• Global Refining Situation
• Refining Costs
• Refining Investment
• Size and Complexity
• Location and Logistics
• Maintenance Costs

Day 3: Refinery Process Unit Operational Costs

• Physical Separation: Crude & Vacuum Unit Distillation
• Product Enhancement
  • Hydrotreating
  • Catalytic Reforming
  • Fluid Catalytic Cracking
  • Hydrocracking
  • Bottom of the Barrel Upgrading
• Process Simulations
• Advanced Process Control and its Benefits
• Blending for Product Specifications
• Blending to Reduce Product Costs

Day 4: Economic Evaluation and Cost Management

• Cost Estimation
• Refinery Complexity and Netback
• The Gross Refining Margin
• The Net Refining Margin
• Factors that Influence Margins
• Margins According to Region
• Refinery Utility System
• Steam and Power System Optimization
• Energy Efficiency: The Effect of Energy on Refinery Profitability
• Quantification of Fuel Loss, Oil Accounting

Day 5: Process Heat Integration & Equipment Efficiency: Effective Energy Management

• Process Heat Integration
• How does heat integration work?
• Introduction to Pinch Technology
• Heat Availability Curves and Energy Targeting
• Equipment Efficiency: Effective Energy Management
  • Fired Heaters
  • Rotating Equipment
  • Heat Exchangers
• Energy Focused Organization
• Course Review and Close