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Cost Management in Oil Refineries: Strategies for Effective Energy Management | 19th – 23rd May 2025

This 5-day intensive course provides in-depth insights into the various aspects of cost management in oil refineries, with a strong ... Show more
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Course Overview

This 5-day intensive course provides in-depth insights into the various aspects of cost management in oil refineries, with a strong emphasis on energy management. Participants will explore key concepts in refinery cost estimation, budgeting, and control, along with strategies for optimizing energy usage and reducing operational costs. The course covers refinery process unit costs, crude oil refining, economic evaluation, and energy efficiency, culminating in advanced techniques for heat integration and equipment performance improvement. Attendees will also gain a comprehensive understanding of energy benchmarking, fuel costing, and energy’s impact on refinery profitability.

Course Objectives

By the end of this course, participants will be able to:

  1. Understand the principles of cost management and its application in refinery operations.
  2. Estimate, plan, and control refinery costs with a focus on energy consumption.
  3. Evaluate the impact of energy efficiency on refinery profitability and develop strategies to improve energy management.
  4. Analyse refinery process unit operational costs and implement strategies to optimise them.
  5. Understand economic evaluation metrics such as refining margins, netback, and gross refining margin.
  6. Implement heat integration strategies using pinch technology and improve equipment efficiency.

Target Audience

  • Refinery engineers and managers responsible for cost management and energy optimization.
  • Operations and maintenance managers focused on improving refinery profitability.
  • Financial analysts and planners in the petroleum refining industry.
  • Energy managers and specialists working in energy efficiency and management.
  • Process engineers involved in refinery operations and equipment efficiency.

Daily Agenda

Day One: Overview of Cost Management

  • Introduction to cost management principles in refineries.
  • Resource planning techniques for cost optimization.
  • Cost estimating methodologies and frameworks.
  • Cost budgeting and control strategies in refinery operations.
  • The effect of energy usage on refinery profitability.
  • Understanding refinery material and energy balance.
  • Energy benchmarking: How to assess refinery performance.
  • Fuel, power, and steam costing methodology.

Day Two: Crude Oil Refining

  • Types of refineries and their operational differences.
  • Key process units in crude oil refining and their cost implications.
  • Refinery and process utilization: Maximizing capacity.
  • Global refining situation: Trends, challenges, and opportunities.
  • Understanding refinery costs: Factors that affect costs and pricing.
  • Refining investment considerations and capital expenditures.
  • Cost drivers: Refinery size, complexity, location, and logistics.
  • Maintenance costs and their role in refinery cost management.

Day Three: Refinery Process Unit Operational Costs

  • Physical separation: Crude & vacuum distillation unit costs.
  • Product enhancement processes: Hydrotreating, catalytic reforming, fluid catalytic cracking (FCC), and hydrocracking.
  • Bottom-of-the-barrel upgrading: Cost considerations and strategies.
  • Process simulations for cost optimization.
  • Advanced process control and its role in cost management.
  • Blending for product specifications: Cost benefits and challenges.
  • Blending to reduce product costs and improve profitability.

Day Four: Economic Evaluation and Cost Management

  • Refinery cost estimation and capital budgeting.
  • Refinery complexity and netback: Metrics for financial performance.
  • The gross refining margin and its significance in cost management.
  • The net refining margin and how it relates to operational efficiency.
  • Factors influencing refining margins, including regional variations.
  • Refinery utility systems: Steam and power system optimization for cost reduction.
  • Energy efficiency: The direct effect of energy consumption on refinery profitability.
  • Quantification of fuel loss and oil accounting in cost management.

Day Five: Process Heat Integration & Equipment Efficiency; Effective Energy Management

  • Process heat integration: Principles and strategies for energy savings.
  • Introduction to Pinch Technology: Optimizing energy flows in refineries.
  • Heat availability curves and energy targeting for process optimization.
  • Improving equipment efficiency: Focus on fired heaters, rotating equipment, and heat exchangers.
  • Creating an energy-focused organization: Aligning energy goals with operational strategies.
  • Review of key learning points and final course wrap-up.

Why Choose this Course?

This course offers a holistic view of oil refinery cost management, with a focus on energy optimization techniques that are critical for increasing refinery profitability. Participants will be equipped with the tools to estimate, manage, and control costs across all refinery operations while improving energy efficiency through advanced methods like heat integration and pinch technology. The course is designed to provide practical, real-world solutions for refinery professionals, enabling them to make informed decisions that drive both cost reduction and sustainability in refinery operations.

Learning Outcome

Upon completing this course, participants will:

  1. Develop and implement effective cost management strategies in refinery operations.
  2. Use energy benchmarking and cost estimation techniques to optimize refinery costs.
  3. Apply advanced process control and simulation techniques to reduce operational expenses.
  4. Evaluate refinery margins, refining costs, and economic indicators for decision-making.
  5. Integrate heat management and energy efficiency practices to enhance refinery performance.
  6. Apply Pinch Technology and process heat integration to improve energy management and reduce costs.
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