Refining Economics

Day 1: Introduction to Refining and Economic Drivers

• Overview of refining processes and configurations

• Types of refineries: Hydroskimming, Conversion, Complex

• Product slate and market demands

• Margin definitions: Gross Refining Margin (GRM), Net Margin

• Introduction to the refining value chain

• Case Study: Margin Variation Across Crude Types

Day 2: Crude Selection and Feedstock Economics

• Crude quality: API gravity, sulfur, TAN, yield profiles

• Crude assay analysis and comparison

• Economic evaluation of feedstocks

• Crude compatibility and blending economics

• Crude basket strategies and spot vs. term decisions

• Exercise: Optimal Crude Selection for Different Refinery Types

Day 3: Product Valuation and Yield Optimization

• Product pricing fundamentals and regional markets

• Gasoline, diesel, jet fuel, and fuel oil economics

• Impact of product specifications on value (RVP, sulfur, octane)

• Yield optimization and cut-point adjustment

• Product upgrading and conversion unit economics

Day 4: Margin Management and Economic Tools

• Refinery margin calculation and benchmarking

• Break-even analysis and operational cost modeling

• Use of Linear Programming (LP) in economic planning

• Processing cost breakdown and unit economics

• Risk, hedging, and sensitivity analysis

• Hands-On Exercise: Margin Calculation from Crude to Product

Day 5: Strategic Planning and Market Integration

• Long-term planning and investment decision metrics (NPV, IRR)

• Impact of environmental regulations and carbon pricing

• Integration of refining with trading, marketing, and petrochemicals

• Supply chain economics and export arbitrage

• Final Case Study: Developing an Integrated Economic Strategy

• Final Review, Assessment, and Certification