PD-05-159 Crude Supply and Inventory Management: Tools and Techniques

Description:

It may seem to some people that the process of having the right crude at the right place at the right time for the right price would be straightforward, but for those in the industry that are trying to do just that it is anything but straight forward. The decisions made by these individuals have a large impact on overall refining profitability and must be made with large uncertainties in demand, product prices, crude quality, logistics, and refinery operating capabilities/capacities. As a result of these risks and incentives, many companies have focused significant effort on developing tools and techniques to maximize the value gained and reduce the uncertainties. This paper describes some of these innovative approaches, characterizes the effectiveness of these practices, the various business strategies employed, and provides industry examples.