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
course 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
course it 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.
This training course will highlight:
Lectures, tutorials and group work
in all areas of refinery cost management
Actual Case Studies that
illustrate technical solutions with observable results benefits
Use of basic cost management
software tools in excel will be made available to participants
Transfer of instructor’s broad
hands-on industrial experience
Open reflection on real life
situations in participants’ own refineries
Training Objectives
What are the Goals?
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
Target Audience
Who is this Training Course for?
This
training course is designed to provide technical and practical approaches for
executing petroleum refinery related cost management.
This training course is suitable to 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
Training Methods
How will this Training Course be Presented?
Oil
Refinery Cost Management is a hands-on, stimulating learning experience. The
training course will be highly interactive, with opportunities to advance one’s
opinions and ideas. Participation is encouraged in a supportive environment.
To
ensure the concepts introduced during the training course are understood, they will
be reinforced through a mix of learning methods, including lecture style
presentations, open discussions, case studies, and short videos. Hands on
computer software and simulations will be provided to illustrate the
application of costing and cost management. The case studies provided for group
work will be re-enforced with practical exercises in excel and there will be
ample opportunities for discussion and sharing of experiences.
Organizational Impact
In sending delegates to this training seminar, the organization
will gain the following benefits:
Improved
creation of cost structures for refinery process unit production planning
and scheduling
Greater
commitment to the process of planning and controlling costs and budgets
More rapid
reaction to changes in the business environment
Closer alignment
of strategic and operational goals
More cohesive
system energy management
Improved
planning and scheduling approach with sustainable plant profitability and
optimization
Personal Impact
In attending this training seminar, individual delegates will
gain the following benefits:
Practical ideas
for developing and allocating cost structures for refinery process unit
Enhanced
competency in making a more effective contribution to strategic and
operational planning
Up-to-date
understanding of main trends in refinery margins
Greater
confidence in dealing with strategic and operational risk
Familiarization
with state-of-the-art spreadsheets for cost management
Improved ability
in appreciating that production costs are a synthetic index that directly
affects the bottom line
Daily Agenda
Day
One: 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
Two: 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
Three: 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
Four: 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
Five: Process Heat Integration & Equipment Efficiency; Effective Energy
Management
Process Heat Integration
How heat integration works?
Introduction to Pinch Technology
Heat availability Curves and
Energy Targeting
Equipment Efficiency; Effective
Energy Management
Fired heaters
Rotating equipment
Heat Exchangers
Energy Focused Organisation
Course review and close
Awarded Certificate
On successful completion of this training
course, Certificate will be awarded to
the delegates
