A global boutique consultancy, we serve our clients in two ways: via client directed projects (TCG Consulting) and via various programs and studies (TCG Resources).

Extending the Profitability of Refineries/Petrochemicals Operations

New Multi-Client Study Proposal from TCGR

“Extending the Profitability of Refineries/Petrochemicals Operations”

With the lower price of crude, downstream operations become profit centers and a mainstay in earnings! Looking for value-added to sustain this profitability and even increase it is therefore paramount. Producing more value-added fuels components, as well as olefins and aromatics, is therefore a focus.

The processing of lower cost crudes in refineries during 2015 (and expected to continue in 2016) has led to a substantial increase in downstream margins for both fuels and associated petrochemicals. Today on average about 60% of all integrated refining and energy companies’ earnings are coming from downstream, not upstream, operations. EIA and other sources on majors’ earnings reports have highlighted this via the following trend:

Downstream and Upstream Earnings for Select Global Integrated Oil Companies

With crude pricing for 2016 forecast to keep within its current trading range, refiners and petrochemical producers are now asking themselves what planning and operational changes should be implemented for 2016 to maintain or increase the margins/profitability for 2016 and beyond as a corporate priority!

The answer(s) will vary depending on many regional, operational and technology factors which will be specific to each refinery site. However, there are many best practices and tools in the production arsenal, depending on major factors that can be implemented, to improve operating margins that are common to almost everyone. TCGR’s new multi-client study, entitled “Extending the Profitability of Refineries/Petrochemicals Operations,” will examine and document the top 5 to 10, in each of these categories:

  • Improved Catalyst and Process Practices to Improve Profits

Including initiatives by catalyst producers towards new and improved catalysts for refinery and petrochemicals production; offerings from process licensors for improved energy efficiency and reduced CAPEX and OPEX.

  • Partnerships, Swaps and Consolidations

Including feedstock and product swaps, through production partnerships, offering flexibility to avoid significant CAPEX investment and maximize existing operations/streams.

  • Capturing the Best in Renewables Fuels and Products

Including “cellulosic bioethanol” and fast-developing biochemical alternatives like biobutanol, mixed alcohols, bioalcohols and other denser, higher octane products and the growing worldwide trend toward biorefineries that deploy hydroprocessing of biofeedstocks, which along with pyrolysis of biofeedstocks, offer some lower costs methods of biofuels production at scale-to-traditional refinery operations.

  • Regulatory and Environmental Compliances

Including approaches towards addressing ever stricter environmental regulations affecting air, water and discharge limits encompassing spent catalysts, wastewater treatment, flaring or CO2 emissions.
By highlighting 20-25 enriched areas for profit improvement, including some combined and synergistic approaches, TCGR will demonstrate a range of newer approaches being implemented that will provide refiners and petrochemical producers with returns via practical steps from profit improvements being implemented by both competitors and peers, globally.  Subscribers will be provided with a check list of tools and Case Studies for comparative purposes to stimulate best practices within the context of each refinery or petrochemical production’s site restrictions that will better obtain improved profitability, without significant CAPEX, while also respecting changing (moving) environmental and quality standards for product specifications and as well as refinery/production site compliance.

The added value TCGR provides is real world operating expertise on how to improve on these examples, from experienced Dialog Group® active industry consultants. TCGR will utilize numerous local, deeply experienced catalyst and process technology experts from the refining and petrochemicals production industries to assist us to provide insights beyond what other sources that do not have the reach and industrial experience can provide.

Additional information, including the complete study proposal, the preliminary Table of Contents and the Order Form, can be downloaded by the link below or by contacting John J. Murphy at +1.215.628.4447 or John.J.Murphy@catalystgrp.com.

The Catalyst Group Resources (TCGR), a member of The Catalyst Group, is dedicated to monitoring and analyzing technical and commercial developments in catalysis as they apply to the global refining, petrochemical, fine/specialty chemical, pharmaceutical, polymer/elastomer and environmental industries.

Download PDF:
Proposal – Extending the Profitability of Refineries Petrochemicals Operations (March 2016)