data (such as crude availability, product slate, etc.) is readily available to the
planner. Normally, running plans are published on a monthly basis. Again normally
these plans cover a period of 18 months. The early part of the period, say the first
6 months, will be studied on a monthly basis, and the remainder on a quarterly basis.
The Use and Purpose of the Refinery Running Plans
The running plans are designed to provide corporate management with data with
respect to the following:
1. The anticipated pattern of production, i.e., the surpluses and the deficits that are
likely to occur.
2. The likely operations of the refineries in the company. This covers crude runs
and refinery throughputs.
3. Any inadequacies in refining capacities to meet projected profit margins. This
may form the basis for refinery expansion program. (This is dealt with in a
separate item of this section of the chapter.)
4. Indication as to where and when extra business can be accommodated in the
company’s operating plan.
5. The basis for financial forecasting and estimates of profit and loss.
The Planning Schemes
The content of the running plan will conform to the rules of planning listed and
discussed earlier. The development of all running plans begins with schematic
diagrams giving as many options as possible of the routes by which a required
product slate can be achieved from a particular crude availability slate. The
mechanism to arrive at this is not unlike the process configuration study described
in the topic “▶ Petroleum Products and a Refinery Configuration” of this Handbook. In the case of the plan schemes, however, the objective is to fit the process
streams to a fixed refinery configuration in order to meet a product slate. In these
schemes, excess products are corrected by either reducing crude throughput or
using the stream as blend stock or feed to other units. Deficits in the product slate
may be solved by importing the necessary product components to complete a
scheme. An example of a typical planning scheme to meet middle distillates (Jet
Fuel in this case) and specialties (white spirit in this case) is given as Fig. 1.
Several such schemes may be developed to meet this particular product slate
criterion. Each of them will be subject to an economic analysis, and this may extend
to one or more of the company’s several refineries. These economic analyses are
made using the same criteria of cumulative product profits (including plant operating costs) as described above in economic rules and the example provided by
Table 1. Computer technology is used extensively in planning these days. Indeed,
most refinery companies possess their proprietary programs similar to the linear
program discussed later in this chapter to evaluate the economics of the schemes
and to determine the optimum one. However, the development of the scheme itself
still remains with the planning engineer or development engineer for most
companies.
Petroleum Refinery Planning and Economics
691
planner. Normally, running plans are published on a monthly basis. Again normally
these plans cover a period of 18 months. The early part of the period, say the first
6 months, will be studied on a monthly basis, and the remainder on a quarterly basis.
The Use and Purpose of the Refinery Running Plans
The running plans are designed to provide corporate management with data with
respect to the following:
1. The anticipated pattern of production, i.e., the surpluses and the deficits that are
likely to occur.
2. The likely operations of the refineries in the company. This covers crude runs
and refinery throughputs.
3. Any inadequacies in refining capacities to meet projected profit margins. This
may form the basis for refinery expansion program. (This is dealt with in a
separate item of this section of the chapter.)
4. Indication as to where and when extra business can be accommodated in the
company’s operating plan.
5. The basis for financial forecasting and estimates of profit and loss.
The Planning Schemes
The content of the running plan will conform to the rules of planning listed and
discussed earlier. The development of all running plans begins with schematic
diagrams giving as many options as possible of the routes by which a required
product slate can be achieved from a particular crude availability slate. The
mechanism to arrive at this is not unlike the process configuration study described
in the topic “▶ Petroleum Products and a Refinery Configuration” of this Handbook. In the case of the plan schemes, however, the objective is to fit the process
streams to a fixed refinery configuration in order to meet a product slate. In these
schemes, excess products are corrected by either reducing crude throughput or
using the stream as blend stock or feed to other units. Deficits in the product slate
may be solved by importing the necessary product components to complete a
scheme. An example of a typical planning scheme to meet middle distillates (Jet
Fuel in this case) and specialties (white spirit in this case) is given as Fig. 1.
Several such schemes may be developed to meet this particular product slate
criterion. Each of them will be subject to an economic analysis, and this may extend
to one or more of the company’s several refineries. These economic analyses are
made using the same criteria of cumulative product profits (including plant operating costs) as described above in economic rules and the example provided by
Table 1. Computer technology is used extensively in planning these days. Indeed,
most refinery companies possess their proprietary programs similar to the linear
program discussed later in this chapter to evaluate the economics of the schemes
and to determine the optimum one. However, the development of the scheme itself
still remains with the planning engineer or development engineer for most
companies.
Petroleum Refinery Planning and Economics
691