Fundamentals of Petroleum Refinery Economics

Course Overview
This one-day course presents an overview of refinery economic terminology, including fundamentals and methodology used to assess profitability of ongoing operations, planned expansions and process unit revamps. Discussions cover the definitions and calculation of crack spreads and refining margins, issues influencing feed and product pricing, including hedging and speculative markets, capital and operating costs, refinery complexity, process models and linear program applications as operating and optimization tools, feed and process unit economic drivers, and examples of project profitability and annualized operating cash flow. 

While this course is basic in nature, attendees unfamiliar with refinery terminology and its processes are urged to attend the "Introduction to Petroleum Refinery Processing" course.

A complete set of course materials and lunches are included.

All scheduled event(s) for this short course:
Date: TBA
Course Syllabus
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Course Outline
  • Economic Fundamentals – Terminology, Evaluation Applications and Utilization
  • Margins and Crack Spreads – Difference Between, Sources of Data, How Calculated
  • Feed and Product Pricing – Netback or Formula, Derivatives, Pricing Factors
  • Capital Cost – How Derived
  • Operating Cost – Fixed vs. Variable
  • Refinery Complexity – Implications, How Calculated
  • Operating and Optimization Tools – Simulation Models and Linear Programming
  • Economic Drivers – Feedstocks, Products, Critical Refinery Process Units

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Instructor

Marvin Rakow is President of EDU-TECH Management Resources, a consultant services organization in technical training, business development, marketing and R&D to the petroleum, petrochemicals, and specialty chemicals industries. He held various technical and management positions with two major oil companies and was previously Senior Vice President for Hydrocarbon Research, Inc. (HRI), responsible for all technical groups and the operation of HRI's R&D Center, including technology commercialization for the petroleum/petrochemicals industries. He has presented technical courses and webinars for more than three decades.

Training Venue

To avoid potential course disruptions caused by the attendance of unconfirmed registrants, the training venue address will ONLY be provided to registrants upon receipt of payment (via an email confirmation note).

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November 15, 2013, Senior Source Standards Engineer, Calgary
The course was excellent. Marvin Rakow is an expert in the field. HIs knowledge and personal experience make the course relevant, practical, and accessible to all in attendance. I would definitely take a class from him again. Excellent job!