Fundamentals of Petroleum Refining Economics

Fundamentals of Petroleum Refining Economics

January 11-12, 2022 | Online :: Central Time

“The presentation by Tod and Alex from Muse Stancil was fantastic!  This should be a mandatory course for anyone entering the Refining space, whether from an Owner, Operator or any other interested party. The amount of material covered in this course is extremely impressive!” – ArcLight Capital

The Petroleum Refining Economics course is designed to teach the basic fundamentals of refining technology in combination with essential economics concepts to help participants better understand the main drivers of refinery competitive positioning and financial performance. A technical background is not necessary to understand course materials; the course should be useful to financing or marketing individuals who have some involvement with refining or petroleum products. Similarly, the course may be helpful to refinery technical staff who are interested in learning how commercial and economic factors drive operating and investment decisions that affect their facilities. 

Learning Outcomes  

  • Review how location, configuration, and crude oil supply contribute to refining profitability
  • Review the nature of petroleum markets, market cycles, and their global interconnectivity
  • Explain how refinery configurations affect petroleum product prices worldwide
  • Discover why refineries prefer different types of crude oils
  • Discuss how refineries can be modified to become more profitable
  • Improve understanding of the role logistics plays in refinery profitability
  • Identify how to interpret published information on the refining industry and refining companies
  • Identify key methods of comparing refinery competitive strength
  • Realize how trends in petroleum demand force refineries to invest
  • Review key issues driving refinery investment in the current market

    Agenda

    Tuesday, January 11, 2022 : Central Time

    8:45 – 9:00 a.m.
    Log In

    12:30 – 1:15 p.m.
    Lunch Break

    9:00 a.m. – 5:00 p.m.
    Course Timing

    Introduction to Refining

    • History of the industry
    • Macro refining trends and drivers
    • Supply chain roles and contributors

    Crude Oil Basics

    • Bulk crude oil property relationships with refining value
      • Signature properties: API gravity and sulfur content
      • Other commercial value drivers: distillation range, Total Acid Number, etc.
    • Crude oil assays
      • Sources and types of assays (commercial / marketing versus project / planning quality)
      • Interpreting assay data
    • Understanding crude oil supply/demand trade
      • Regional oil consumption growth
      • Global crude oil trade flow
      • Global battle for oil supremacy

    Petroleum Products

    • Product demand trends
      • Gasoline
      • Distillate
      • Fuel oil (IMO 2020 developments)
    • Product specification relationships with value

    Crude Oil and Refined Product Pricing

    • Basic petroleum market pricing concepts
      • Benchmarks
      • Quality / location drivers
      • Crude oil refining values (Gross Product Worth)
      • Key pricing differentials (light / heavy; sweet / sour, etc.)
      • Overview of commercial pricing formulas
    • Transportation / logistics costs
      • Modes of transportation
      • Worldscale tanker costs and pipeline tariffs
      • Terminal and handling costs

    Wednesday, January 12, 2022 : Central Time

    8:45 – 9:00 a.m.
    Log In

    12:30 – 1:15 p.m.
    Lunch Break

    9:00 a.m. – 5:00 p.m.
    Course Timing

    Refinery Configurations and Complexity

    • Refinery configuration types
      • Topping / Hydro-skimming
      • Cracking / Coking
      • Relative margins
    • Conversion processes
      • Hydrocracking / Fluid catalytic cracking
      • Coking
      • Vis-breaking / Solvent de-asphalting
    • Upgrading processes
      • Hydrotreating / Benzene reduction
      • Catalytic reforming & Isomerization
      • Alkylation
    • Other processes (offsites, utilities, renewable fuel)

    Fundamentals of Refining Economics

    • Fundamentals of refinery economics and margin optimization overview
      • Markets Price-Setting Mechanism
      • Economic Evaluation Steps
      • Linear Programming Basics
    • Financial metrics
      • Gross, variable, and net margins
      • Fixed and variable cost development
    • Capital costs
      • Categories (sustaining, maintenance, environmental / regulatory vs. discretionary)
      • Replacement Cost New (RCN) estimation and uses
    • Working capital requirements

    Instructor

    Mr. Tod D. McGreevy, Vice President/Director; Muse, Stancil and Co.

    Mr. Tod McGreevy has over 29 years industry experience and a diverse background in petroleum refining and manufacturing. Mr. McGreevy currently serves as Vice President and Director of Muse, Stancil and Co., a global energy consultancy headquartered in Dallas, Texas. He has been with Muse since 2003 and is also a Director of Muse’s Singapore affiliate, Muse, Stancil & Co (Asia), PTE, LTD. During his career, Mr. McGreevy has held various positions that encompass many of the technical/managerial functions found in the downstream sector of the petroleum industry. Previous work assignments have given him a wealth of experience in refinery economics including tactical planning and optimization, long-term, strategic planning, project evaluation, economic justification, and development, budgeting, financial performance measurement and benchmarking, and financial modeling.

    Online Delivery

    We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

    • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
    • You will receive a meeting invitation will include a link to join the meeting.
    • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
      • You will need to join the appropriate meeting at the appropriate time.
    • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
    • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

    Register

    Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

    If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

    Event Standard RateAttendees

    CEUs

    AP_Logo

    EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

    EUCI is authorized by IACET to offer 1.4 CEUs for this event.

    Requirements for Successful Completion of Program 

    Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

    Instructional Methods

    PowerPoint presentations, interactive group exercise, and group discussion will be used during this course. 

    Who Should Attend 

    • Refiners
    • Financial Analysts and Bankers
    • Crude Oil Marketers
    • Petroleum Analysts
    • Regulators/Government
    • Refinery Finance Executives
    • Technology Suppliers
    • Project Developers
    • Commercial Business Analysts
    • Crude & Products Managers
    • Crude Producers
    • Products Supply and Distribution Executives
    • Strategic/Business Development Managers
    • Energy Lenders
    • Investment Analysts
    • Insurers
    • E&C Firms/Economic Feasibility Analysts

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