Petroleum Refinery Planning and Economics

This chapter is divided more or less into three parts. The first part (section “Refinery Operation Planning”) deals with the planning of a refinery’s operation, which includes its optimized crude runs, product slate, and any process expansion or debottlenecking that may be required to meet this optimized operation. The second part (sections “Process Evaluation and Economic Analysis,” “Discounted Cash Flow and Economic analysis,” and “Using Linear Programming to Optimize Configurations”) deals with the process economic evaluation of a proposed new refinery or new facilities within an existing refinery. (The execution of the capital project is discussed in the chapter “Petroleum processing projects” elsewhere in this Handbook.) The third part (section “Common and Expressions Used in Standard Economic Analyses”) is a summary of common terms and expressions used in a standard economic analysis.