Crude Economics

Day 1: Fundamentals of Crude Oil Markets

• Overview of Global Crude Oil Supply and Demand

• Key Benchmarks: Brent, WTI, Dubai, and OPEC Pricing

• Types of Crude Oil: Sweet vs. Sour, Light vs. Heavy

• Pricing Mechanisms and Differentials

• Crude Contracts, Freight, and Delivery Considerations

• Case Study: Price Movement Impact on Refinery Margins

Day 2: Crude Assay and Quality Considerations

• Understanding Crude Assays and Their Interpretation

• Key Parameters: API Gravity, Sulfur, TAN, Metals

• Yield Patterns and Compatibility with Refinery Configuration

• Processing Challenges with Different Crude Grades

• Lab Session: Analyzing Crude Assay Reports

• Exercise: Match Crudes with Refining Objectives

Day 3: Crude Slate Optimization and Planning Integration

• Crude Selection and Blending Strategies

• Constraints from Process Units (CDU, VDU, FCC, Hydrocrackers)

• Impact of Crude on Product Yield, Quality, and Margins

• Short-Term vs. Long-Term Crude Planning

Day 4: Economic Evaluation and Scenario Analysis

• Calculating Gross Product Worth and Netback

• Margin Analysis: Crack Spread, Net Refining Margin, Refinery Gate Value

• Crude Valuation Tools and LP Model Integration

• Sensitivity Analysis and Risk Factors (Price Volatility, Opex, Specs)

• Case Study: Crude Switching Decision Under Market Pressure

Day 5: Strategic Alignment and Real-World Application

• Coordinating with Trading, Supply, and Operations Teams

• Responding to Market Shocks (Geopolitical, Supply Disruptions)

• Role of Crude Economics in Corporate Strategy

• Final Group Presentations: Crude Selection for a Hypothetical Refinery

• Wrap-Up, Feedback, Q&A

• Certificate Distribution and Closing Remarks