Introduction to Petroleum Refining Technology & Economics

Course overview This course presents a comprehensive introduction to petroleum refining technology and economics. The focus is on transportation fuels refineries, however, petrochemical production and biofuels are also discussed. The first part of the programme includes an overview of crude oil supply and petroleum product demand. This is followed with a description of refinery process technology. Major refining technologies are described such as crude oil distillation, heavy oil conversion options, hydrotreating, and catalytic reforming. Although oil refineries have many similarities, each refinery is customised to most profitably supply a specific market. Profitable refinery operations involve many economic decisions, such as crude oil selection and production planning. The course includes a discussion of the linear programming technique, which is used for these important business decisions. The final session is a comprehensive description of key planning activities that involve important refinery economic decisions. Who should attend? In addition to oil refining company personnel, other individuals who interact the industry will benefit from this course, finance, insurance, and petrochemical producers. A technical background is not required for course participants.
Day 1 Crude oil The cost of crude oil is approximately 70-80% of the cost of operating refineries. Understanding crude oil reserves and characteristics is therefore important. World-wide crude supply Future production trends Petroleum products Environmental concerns are resulting in increasingly stringent transportation fuels specifications, and this has a significant impact on refinery operations. This session will review product consumption trends and key specifications. Product demand trends - Gasoline - Distillate - Fuel oil Product specifications - Gasoline - Jet fuel - Diesel - Fuel oil Product pricing - Refining centers - Import/export parity Crude oil quality A discussion of crude oil composition and properties is presented in this session. Crude oil composition - Typical elemental breakdown - Hydrocarbon types Bulk crude oil properties - API gravity - Sulfur content - Distillation range - Other important properties Refinery process technology This is an overview of process technology, with a focus on heavy oil conversion options. The range of refinery process technology will be discussed. This session is divided into the following sections: Separation Distillation fundamentals Atmospheric distillation Vacuum distillation Gas plants Day 2 Refinery process technology (continued) Conversion processes - Hydrocracking - Fluid catalytic cracking - Delayed coking - Fluid coking - Visbreaking - Solvent deasphalting - Resid hydrocracking Upgrading processes - Hydrotreating - Catalytic reforming - Isomerisation - Alkylation Supporting processes - Acid gas removal - Sulfur recovery - Hydrogen production - Benzene reduction - Utilities and offsites - Product blending The technology is described along with important feedstock characteristics and typical product yields. Day 3 Other related technology A number of refineries around the world produce petrochemicals in addition to transportation fuels. The technology involved in producing these products is discussed. An overview of biofuels is also presented. Petrochemicals - Aromatics - Olefins Biofuels - Ethanol - Biodiesel Refinery types, complexity Refineries vary in type and complexity depending on many factors such market demand and company investment objectives. Refinery types - Topping - Hydroskimming - Cracking - Coking Nelson complexity index Refinery margins Refiners use several types of refinery margins to describe their profitability. Each of these margins is described and how each is applied. Gross Variable Net Incremental Refinery planning and economics This session will begin with an overview of refinery economics modelling which involves the linear programming technique. Refinery planning applications are then discussed in detail. Linear programming Crude oil assays Refinery modelling Planning applications - Crude oil evaluation - Production planning - Product blending - Shutdown planning - Configuration studies - Technology evaluation Course summary and close