A partner of excellence for oil and gas professional development

Downstream Economics & Management

15 jours EAV/DEM
  • Professionals from the refining, the petrochemicals and the distribution sectors in a management position where they need to deepen their understanding of all the essential economic aspects as well as the management tools used in the oil downstream sector
  • To allow the participants to acquire a complete view of the economic principles of the downstream sector as well as the methods necessary for the decision-making processes
  • Upon completion of the course, participants will be able:
  • to analyze the economic fundamentals of the energy scene, with a particular attention to the importance of markets dynamics and its impact on the economics of refining, petrochemicals and distribution
  • to evaluate the economic values of various intermediate or semi-finished products
  • to use linear programming models and management tools in order to optimize refining and petrochemical operations
  • to do project profitability evaluation
  • to take part in the development of a marketing strategy
  • to analyze the supply chain of an industry

Trading 2 jours
  • Oil supply and demand fundamentals
  • Petroleum physical trading
  • Financial trading (futures), markets place, derivatives
  • Hedging and strategies
Refining and petrochemicals economics 3 jours
  • Brief technical overview of the main refining and petrochemical processes
  • World refining and petrochemicals demand
  • Evolution of the downstream supply: refining overcapacities, production nature and quantity
  • Main challenges for the refining sector: deep conversion, new product specifications, petrochemical integration, environment, etc.
  • Refining margins and costs
  • Case study: valuation of intermediate products of a FCC (Fluid Catalytic Cracking) unit
  • Case study: refinery blending simulation
  • Main characteristics of the petrochemical business: economic drivers, cyclic behavior, etc.
  • Case study: steam cracker economics
Optimization of refining operation - Linear programming 2.5 jours
  • Linear programming (LP) principles: linear equation, objective function, profit maximization or cost minimization, Simplex method, graphic interpretation, etc.
  • Analysis of the LP results: optimum properties, marginal costs, domain of validity of the results, etc.
  • Case study on Excel: introduction to the preparation of a refinery model matrix (material balances, products specifications, utilities consumption, objective function, etc.); team work on the optimization of a cracking refinery
Refining operations planning - Scheduling 1.5 jours
  • Principles of refining management: constraints, operations organization
  • Monthly program to daily operations
  • Optimization of margins from different process units
  • Case study: management of typical sequential constraints (delays, processing problems, etc.)
Investment profitability studies 1 jour
  • Value creation and capital cost, cash flows, discounting principle and inflation impact
  • Standard global profitability analysis: cash flow schedule, economic criteria
  • Introduction to risk analysis
  • Exercises on various investment profitability studies for refineries and petrochemical plants
Strategic marketing 2 jours
  • Marketing role in a firm and in the economy, marketing organization
  • Measuring the firm's competitiveness
  • Designing a development strategy
Supply chain management 3 jours
  • Supply chain principles: definitions, review of activities, interactions with consumers
  • Storage management: "pull" and "push" modes, basic tools for stock management, technical and economic aspects
  • Supply chain design and methodological approaches: analysis of the industry (organization, process, location)
  • Benchmarking context