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• Provide comparative performance analysisProvide comparative performance analysisfor the global energy industryfor the global energy industry Fuels/lubes refiningFuels/lubes refining PetrochemicalsPetrochemicals Pipelines and TerminalsPipelines and Terminals Electric Power generationElectric Power generation
A valid, external A valid, external comparison is the best comparison is the best way to gauge how well way to gauge how well you are doing and to you are doing and to
guide your staff to meet guide your staff to meet the challenge …the challenge …
How Competitive Is A Refinery In How Competitive Is A Refinery In The Marketplace?The Marketplace?
• Strategic perspective – economic viabilityStrategic perspective – economic viability• Comparison of total cost and resources Comparison of total cost and resources
required to manufacture petroleum required to manufacture petroleum productsproducts Without regard for number or size of process Without regard for number or size of process
units or other structural aspects contributing to units or other structural aspects contributing to higher costshigher costs
As a result, competitive positioning may be As a result, competitive positioning may be limited by structural or configuration constraintslimited by structural or configuration constraints
Customers unwilling to cover differences in cost Customers unwilling to cover differences in cost per barrel of product by refineries supplying the per barrel of product by refineries supplying the market market
Customers at the pump don’t care if a Customers at the pump don’t care if a refinery hasrefinery has
higher costs – they only want the lowest pricehigher costs – they only want the lowest price
How Well Is A Refinery OperatingHow Well Is A Refinery OperatingThe Facilities That It Has Today?The Facilities That It Has Today?
• Operational perspective – focus on Operational perspective – focus on efficiencyefficiency
• Comparison of total costs and resources Comparison of total costs and resources Taking into account actual configuration aspects Taking into account actual configuration aspects
–number and size of individual process units and –number and size of individual process units and other structural aspectsother structural aspects
Focus is on the effectiveness of cost control and Focus is on the effectiveness of cost control and resource management typically within a refinery resource management typically within a refinery
Competitive Metrics OverviewCompetitive Metrics OverviewKey Metrics (Same As Previous)Key Metrics (Same As Previous)
• EDC is the normalization factor for EDC is the normalization factor for competitive metricscompetitive metrics
• Refinery EDC (UEDC) based metricsRefinery EDC (UEDC) based metrics Cash Operating Cost, US Cents/UEDCCash Operating Cost, US Cents/UEDC Non-Energy Cost, US $/EDCNon-Energy Cost, US $/EDC Maintenance Index, US $/EDCMaintenance Index, US $/EDC Personnel Index, Work Hours/100 EDCPersonnel Index, Work Hours/100 EDC Personnel Cost Index, US $/EDCPersonnel Cost Index, US $/EDC Capital Investment Index, US $/EDCCapital Investment Index, US $/EDC
• Raw material selectionRaw material selection• Product yieldsProduct yields• Plant utilizationPlant utilization• Operating cost analysisOperating cost analysis• Energy efficiencyEnergy efficiency• Maintenance and reliability effectivenessMaintenance and reliability effectiveness• Labor productivityLabor productivity
Yields and MarginsYields and MarginsRaw Material Pricing AdjustmentsRaw Material Pricing Adjustments
• Various gas oils – sulfur and aniline pointVarious gas oils – sulfur and aniline point• Heavier feeds – sulfur and Concarbon Heavier feeds – sulfur and Concarbon
Yields and MarginsYields and MarginsProduct PricingProduct Pricing
• Catalytic naphtha based on gasoline Catalytic naphtha based on gasoline blending valueblending value
• Light-cycle oils valued as distillate feed or Light-cycle oils valued as distillate feed or blending stock; dependent on local marketblending stock; dependent on local market
• Heavy-cycle oils and slurry valued as fuel Heavy-cycle oils and slurry valued as fuel oil blending stocksoil blending stocks
• Butylenes and i–butane valued as alkylation Butylenes and i–butane valued as alkylation feedsfeeds
• Propane and n–butane valued as finished Propane and n–butane valued as finished productsproducts
• Propylene valued as chemical feed Propylene valued as chemical feed
• Establishing a plant’s performance level Establishing a plant’s performance level • Quantification of improvement Quantification of improvement
opportunities by expense type and opportunities by expense type and maintenance category maintenance category
• Confirming causal plant characteristicsConfirming causal plant characteristics• Discovery of practices responsible for Discovery of practices responsible for
performance gaps with “Peer Group”performance gaps with “Peer Group”• Provide “business case” for change Provide “business case” for change
programsprograms• Convince personnel of need for new targetsConvince personnel of need for new targets