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Duration
One classroom day providing 0.8 CEU (Continuing Education Credits) or 8 PDH (Professional
Development Hours)
Summary
This one-day course presents an overview of refinery economic terminology, including fundamentals
and methodology used to assess profitability of ongoing operations, planned expansions and process
unit revamps. Discussions cover the definitions and calculation of crack spreads and refining margins,
issues influencing feed and product pricing, including hedging and speculative markets, capital and
operating costs, refinery complexity, process models and linear program applications as operating and
optimization tools, feed and process unit economic drivers, and examples of project profitability and
annualized operating cash flow.
While this course is basic in nature, attendees unfamiliar with refinery terminology and its processes are
urged to attend the "Introduction to Petroleum Refinery Processing" course.
Course Agenda
Day One
• Economic Fundamentals – Terminology, Evaluation Applications and Utilization
• Margins and Crack Spreads – Difference Between, Sources of Data, How Calculated
• Feed and Product Pricing – Netback or Formula, Derivatives, Pricing Factors
• Capital Cost – How Derived
• Operating Cost – Fixed vs. Variable
• Refinery Complexity – Implications, How Calculated
• Operating and Optimization Tools – Simulation Models and Linear Programming
• Economic Drivers – Feedstocks, Products, Critical Refinery Process Units
• Refinery Economics Calculations – Case Study Examples, Cash Flow Calculations
PRACTICAL PROFESSIONAL CAREER TRAINING FOR THE OIL & GAS INDUSTRY
peice.com FPRE2015
COURSE SYLLABUS
Instructor
Marvin Rakow is President of EDU-TECH Management Resources, a consultant services organization in
technical training, business development, marketing and R&D to the petroleum, petrochemicals, and
specialty chemicals industries. He held various technical and management positions with two major oil
companies and was previously Senior Vice President for Hydrocarbon Research, Inc. (HRI), responsible
for all technical groups and the operation of HRI's R&D Center, including technology commercialization
for the petroleum/petrochemicals industries. He has presented technical courses and webinars for more
than three decades.
Course Dates
Please visit the course details webpage for currently scheduled course dates.
PRACTICAL PROFESSIONAL CAREER TRAINING FOR THE OIL & GAS INDUSTRY
peice.com FPRE2015