AM-99-36 METHODOLOGY FOR IDENTIFYING MARGIN IMPROVEMENT OPPORTUNITIES

Description:

The Solomon Survey has become an important tool for refiners searching for ways to enhance their performance. The survey measures and reports a range of critical parameters aimed at overall refinery profitability. The biannual survey reveals the performance of pacesetter refineries. These pacesetters define the industry-wide benchmarks that individual refineries measure their performance against. Energy efficiency is one of the metrics reported by Solomon. Energy Intensity Index, EII, is the parameter Solomon uses to gauge refinery energy efficiency. The index is determined by first calculating the standard energy consumption for each process unit in the refinery, including an allowance for offsites. These unit standards are then summed across the refinery to get an overall refinery standard energy consumption. Actual refinery energy consumption is then converted to consistent units and totaled up including electric power, fuel gas, fuel oil, and FCCU coke on catalyst. Dividing actual consumption by the energy standard, then multiplying by 100 yields the refinery EII. Hence EII is a normalized comparison of an individual refinery’s energy efficiency with its competition. An EII of around 100 is near average efficiency for the industry, lower numbers indicating better efficiency.