HYDROCARBON PUBLISHING COMPANY
Translating Knowledge into Profitability®
A member of the Hydrocarbon Analytics Group
Plant Revamps and Upgrades
Major challenges now facing refiners amid market uncertainty: What crudes to buy? What products to make?
Unplanned refinery shutdowns hit company earnings two ways: lost production and potential liabilities for excess flaring and unsafe operations.
The global refining business is pressing forward in a difficult operating environment in which only the best, most sophisticated refineries will be profitable. Complex refineries are considered the ones that can buy the cheapest feeds and convert them into the products the market wants using the most cost-effective processes in the near term with a long-term operational strategy. The cost factor is the key in maintaining profit margins.
At a time of volatile oil prices and crude supply uncertainty, many refiners around the world are again turning their attention to relatively less expensive, unconventional or opportunity crudes (opcrudes). Opcrudes generally include heavy sour grades, oilsand/bitumen, extra heavy oil, high TAN crudes, and oil shale. Refineries without a capability of handling opcrudes will lose out to the competition in the long term.
Report answers the ultimate question of how to allocate resources in future operations based on feed availability, product values, operating costs, financial capability, and carbon footprint.