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Petroleum Refining and Economics for Traders: Operation of Steam Crackers

Introduction

Taught by an acclaimed energy industry expert, this course is filled with tips, techniques, and insights those only years of successful refinery & energy trading experience can bring

You will develop a solid foundation in understanding how a refinery works, what the main processes within a refinery are, what are the economic evaluations done by refineries daily and how these will impact the supply of petroleum and/or petrochemical products/feed streams.  You will explore the nuances and quirks specific to the refining process, understand the risks and rewards across various economic planning steps, and improve your understanding of developing a successful oil/petrochemical trading career.

WHO SHOULD ATTEND?

This course is applicable to all functional areas in the oil and petrochemical industries as well as those in the banking and financial sectors which oversee this dynamic and volatile sector.  Individuals in every functional area of responsibility in all energy industries whose decisions have a significant financial impact will benefit from this program. Managers from areas such as marketing, sales, manufacturing, engineering, supply and distribution, trading risk management, purchasing, as well as financial and accounting will all find the course highly beneficial.

COURSE OUTLINE

Module one:

The Basics: Petroleum Refining Process Overview

The module starts by reviewing the broad frame work of the crude oil refining process: crude oil & characteristics, pre-treatment steps, the role of the atmospheric distillation column , saturated gas plants, naphtha and reforming process, hydro-treaters, residual fuel upgraders, typical refinery flow diagram and what refinery complexity is. Subsequent modules will unpack these areas in greater details.

Module two:

Crude Oil Characteristics and Distillation

We will do a more in-depth review of the characteristics of crude oil and how their properties enable them to be turned into end products in this module.

• Evaluation of crude oils & assays
• The Atmospheric Distiller
• Operations
• Cut points & side streams
• Refinery Products & Characteristics
• Hands-on-Problem(s) 

At the end of selected modules, course participants will have the opportunity to work on problems in teams to help them to consolidate their understanding.

Module three:

The Chemistry of Refinery Processes

No course of this nature would be complete without a review of the chemistry involved in a refinery. We will review the following topics:

• Atoms & Molecules
• Refinery contamination handling
• The (no) Good, The Bad and The Ugly things to watch out for
• he Four PONA Cousins
• Paraffins, Olefins, Naphthenes and Aromatics
• Isomers and others

Module four:

Light Ends Fractionation & Processing: The Saturated Gas Plant

All refinery processes generate light ends that have to be handled with care from a plant safety standpoint as well as recognizing that these lighter molecules are also worth lots. We will review the following aspects:

• What are light ends?
• C 1 to C 5 s
• Saturated gas plant process
• Products from the gas plant and their dispositions/end usage
• Other light ends processes
• Hands-on-Problem(s)

Module five:

Naphtha and the Catalytic Reforming Process 

This is the heart of the gasoline making process in the refinery. It is also the essence of the petrochemical industry. We will review the following topics on this very interesting refinery process:

• What are naphtha streams?
• Naphtha splitters
• Chemistry of the reforming process
• Role of catalytic reformers
• Technologies & operating parameters
• Reformates and aromatics
• Products dispositions
• Hands-on-Problem(s)

Module six:

Gasoline Blending 

This section will review the basics in motor gasoline (“mogas” or petrol or just “gas”) blending. Mogas is such a common product; we all use it every day to get around but yet its characteristics are seldom fully understood. We will review the following aspects of this product group:

• Building blocks in mogas blending: vapor pressure and octane number
• Other blending considerations
• Effects of tetraethyl lead in mogas
• Blending procedures
• Impact on refinery operations
• Hands-on-Problem(s)

Module seven:

Middle Distillates Hydro-treating Processes

All types of contaminations are found in crude oil. When not removed, they will foul up refinery equipment, reduce catalyst activity, and diminish the quality of end products. This section will review how jet fuel and diesel fuel are ‘cleaned up' in the refinery post-treatment processes by looking at the following:

• Hydrogen & its value in a refinery
• Hydro-treating steps
• Merox Units for Jet Fuel
• Catalytic hydro-desulfurization for diesel fuels
• Sulfur and the sulfur recovery process
• Hands-on-Problem(s)

Module Eight:

Resid Fuel Upgrading Processes 

This section will cover the essentials of how refineries extract the further value of crude residue streams through further processing. These include processes like:

• Vacuum distillation
• Thermal cracking
• Coking
• Visbreaking
• Hands-on-Problem(s)

Module Nine:

Fuel Oil Blending 

Fuel oil blending is a very lucrative arena in the trading world. Product qualities are optimized through judicious blending to meet environmental requirements plus avoid quality give-aways. Participants will learn the essentials of fuel oil blending through the use of blending formulas for the following parameters:

• Density
• Sulfur
• Metals
• Viscosity
• Pour point
• Flashpoint
• Hands-on-Problem(s)

Module Ten:

Refinery Complexity & The Nelson Index 

This section will describe the various types of refinery configurations and illustrates what the incremental processes are when moving across the various cluster types as follows:

• Topping refinery
• Hydro-skimming
• Cracking
• Coking

The Nelson Complexity Index will also be explained to complete this section

Module Eleven:

Petrochemicals: Olefins & Aromatics

While this course is primarily about oil refinery processes, it would be negligent of us if we do not at least mention the linkages to the world of petrochemicals! We will review the following:

• Naphtha to petrochemical building blocks
  • Aromatics

• What are aromatics & olefins? 
•  Aromatic processes & key technologies 
• Aromatic products and their end usage 
• Typical aromatics economic problems

• Olefins 

• Steam crackers & olefin products / end usage 
• What affects steam cracker operating margins 
• Differences between petrochemical & oil trading