Refining Business Drivers
Refining Lesson Overview
The Business Drivers Lesson consists of the following topics:
- Refinery Complexity
- Refinery Complexity and Product Yields
- Crack Spread
- Refining Margins
- Refining Margin Calculations
- Global Refining Margins
- Refinery Profitability
- Refinery Return on Investment
- Regulation Trends
Learn more about our updated online refining course here!
[Related: What is Refining?]
Refinery Complexity
Refinery size usually is measured in terms of distillation capacity. Common units for capacity are:
- BCD – Barrels per Calendar Day, based on 360 days per year, allowing downtime for maintenance, and
- BSD – Barrels per Stream Day, i.e. the nameplate or maximum capacity of the refinery.
In addition to throughput, refineries have another dimension, called refinery complexity factor. This concept was developed by W.L. Nelson in the 1960s.
With the Nelson Complexity Index (NCI),refineries are classified based on their processing complexity, varying from simple (hydroskimmers) to very complex conversion refineries. Simple refineries employ limited processing technology and produce a product slate similar to the component make-up of the crudes they run. Very complex refineries utilize extensive processing technology and produce more gasoline and middle distillates.
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I would like to thank you for the brilliant interactive Oil 101 materials. I did use it to prepare for the recruitment process in Royal Dutch Shell, and I managed to take a new role in the oil and gas industry:)