AM-97-62 REDEFINING THE CONTEXT OFREFINERY PACESETTER PERFORMANCE

Description:

. Refineries only exist to add value to crude oil. . Historically, a refinery has been able to be profitable and continuously improve operations by using a pacesetter measurement and benchmark approach on internal operations and support functions. In the USA, the most common method is the Solomon Study, a set of rigorous rules for capture and analysis of historic d.ata - with refinery management striving to be in the top performance quartile. l However, industry changes and, especially, increased crude & product price volatility in the last few years have caused many USA refiners that were top quartile performers to continue to lose large amounts of money. This has often been blamed on the crack spread and “There is not much that we can do about if.” . The global factors driving the USA refiner will continue,and volatility is here to stay. To be successful in this new global environment a refiner must redefine his context ‘. of pacesetter performance. . A new view of the refinery is needed. It’s efficient set of conversion processes are now an integral part of: (1) A tributary product markets and distribution system, (2) A global trading source for crude, feedstocks and incremental products and (3) A volatile paper trading - option exchange system. . Successful refiners, that have effectively defined and now operate in this new context have achieved as much as $25 - $751 bbl improvement - on top of the internal refinery improvements done as part of a traditional Solomon Study approach. The presentation will: (1) Discuss a model to extend refiners’ success beyond the refinery gate, (2) Present the key issues needed to help refiners understand the new context, (3) Present industry case studies from a set of clients that have achieved results.