AM-10-180 Corporate Energy Optimization Initiative: Refinery Case Study

Description:

Typically, 50% of a refinery’s operating expense comprises energy costs and thus presents a significant opportunity to capture savings. With the downturn in the economy, narrowing margins on crude distillates, and increasing cost of capital, identifying, capturing, and sustaining low cost energy reduction opportunities has become increasingly imperative. Historically, energy has been viewed as a relatively inexpensive resource and consequently was used without a great deal of consideration. In 2007, Valero management initiated an Energy Stewardship Program (ESP), and committed to the reduction of energy costs by $100MM per year . Of primary importance was to reduce energy use in the refineries without impacting throughput and quality. To date, the ESP has been deployed in fourteen Valero Refineries with a total savings of $150 million per year captured.