AM-01-17 ENERGY CONSERVATION IMPROVES REFINERY MARGINS

Description:

Energy consumption in a refinery reduces the bottom line and increases environmental emissions. By executing an well-organized and objective Energy Conservation Program, opportunities for improving refinery operating margins and for reducing environmental emissions can be economically achieved. This paper discusses actual examples of refinery operating costs and shows the relationship of energy consumption to the total plant operating costs. Purchased and onsite produced fuel and power contribute to the operating costs. This paper compares the effect of reducing energy costs in the year 1998, when the study was completed, and current energy prices in the year 2000. In 1998, energy prices hit a low value that has not been seen since the early 1970’s. Even at these unexpected low prices potential savings can be identified. Using current energy prices these savings would be more pronounced. Results of the impact of an Energy Conservation Program on margins are discussed showing that thermal energy savings can be cost effective. The program covers that expected savings from implementing an energy program. New tools are now available that can optimize thermal energy consumption as well as point out opportunities available by targeting energy consumption as it relates to investment payback.