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REFINERY TERMINOLOGY
I.A. Refining
API gravity
An arbitrary scale expressing the gravity or density of liquid
petroleum products devised jointly by the American Petroleum Institute
and the National Bureau of Standards. The measuring scale is calibrated
in terms of degrees API. Oil with the least specific gravity has the
highest API gravity.
Higher API gravity crude (light crudes) have a higher price than
lower ones given their higher quality product yields.
The formula for determining API Gravity is:
API gravity = (141.5/specific gravity at 60 degrees F) 131.5.
Typical API gravity
2.98
2.98
5.46
5.46
6.46
6.46
0.87
0.87
Backcasting analysis
What if analysis performed after the month finishes and we have all
actual data.
We are introducing all these data into the monthly plan simulation
and check were was the major constraint that influenced the financial
result: crude recipe processed, unit capacity constraints, market sales,
blending giveaway.
Catalysts
Any substance that changes the rate of a reaction without itself
being changed in the reaction; catalysts can be solids, liquids or gases,
and they may be individual molecules that are dissolved in a liquid
containing the reacting molecules.
The most common industrial catalysts are solids used in treating
feeds that are liquids or gases.
Romanian terminology: Catalizatori
Cetane number or CN is a measurement of the combustion
quality of diesel fuel during compression ignition. It is a significant
expression
of
diesel
fuel
quality
among
number
of
other
Crack
Represents the difference between a crude market price and a
product market price. It is generally used as an indicator of expected
refinery profitability based exclusively on market prices. NWE market
uses Brent cracks while Med market uses Urals cracks as indicators.
These spread differentials which represent refining margins can be
quoted in dollars per barrel -by converting the product prices into
dollars per barrel and subtracting the crude price or dollars per metric
tonne by converting the crude price in metric tonne and substracting
it from product price.
Crack formula = Product price Crude price
Gasoline Med crack = Prem Unl FOB Med Urals Med
Romanian terminology:
Crude Oil
A mineral oil consisting of a mixture of hydrocarbons of natural
origin, yellow to black in colour, of variable specific gravity and
viscosity.
Crude is the raw material which is refined into gasoline, heating
oil, jet fuel, propane, petrochemicals, and other products.
Type:
Sour Crude Oil:
%S
0,24
0,15-0,4
0,4-0,6 -0,57
0,08
0,57
0,74
0,21
0,41
0,49
0,29
0,29
0,05
0,08
%
95.90
73.48
34.46
12.44
0.00
24.82
1.75
22.42
0.10
2.27
14.06
2.05
1.93
0.77
Other Feedstock
Products processed in refinery units for obtaining valuable
products: methane used for hydrogen production, methanol for MTBE
production, etc.
Other feedstock
Gasoline
Vacuum Distillate
Fuel Oil
Methanol
MTBE
Gasoline
Propane for chemical use
Other feedstock
157096
4889
9064
18472
10238
67845
0
31050
15538
4.10
0.13
0.24
0.48
0.27
1.77
0.00
0.81
0.41
into
account
cargoes
loading
from
Black
Sea
ports
of
CPC Blend (CIF Augusta): This daily spot assessment takes into
account cargoes loading from Black Sea port CPC Terminal for delivery
into
the
Mediterranean.
The
assessment
basis
is
CIF
Augusta,
Sicily/Italy.
The API gravity for CPC Blend is 45 degrees and the sulfur content
is 0.6%. The bbl/mt conversion factor is 7.864.
CPC Blend FOB (CPC Terminal): This daily spot assessment
takes into account cargoes loading from the CPC terminal on the Black
Sea.
Azeri Light FOB Supsa: This daily spot assessment takes into
account cargoes loading from the Black Sea port of Supsa.
The API for Azeri Light is 34-34.5 degrees and the sulfur content
is
0.143-0.15%.
The
bbl/mt
conversion
factor
is
7.374-7.395.
Loss
The amount by which the total volume of refinery output is less
than the total volume of refinery input for a given period of time. The
processing loss arises when crude oil and other hydrocarbons are
processed into petroleum products that are, on average, more dense
than the input.
Petromidia:
Loss= Fuel gas for burning + Coke/Catalyst + Technological loss
YEAR 2007: Total Loss = 224,533 mt
Romanian terminology: Consum
Mothball
To place a generating facility in an inactive state so that it can
neither be brought into operation immediately nor counted towards
reserve margin
Romanian terminology: In conservare
Nameplate/design capacity
The full-load continuous rating of a generator or other electric
power production equipment under specific conditions as designated by
the manufacturer. Installed generator nameplate rating is usually
indicated on a nameplate physically attached to the generator.
Romanian terminology: Capacitate proiectata
Netback
Measure the return crude oil producers receive from product
prices after refiners take out their operating costs and transportation
expenses.
This indicates the attractiveness of the produced crude. The
calculation takes into account the location of the market (refinery site),
process
on
dehydrogenation
catalysts
using
catalysts
to
enhance
molecule
breaking,
largely
by
disposing
of
the
excess
carbon
atoms,
10
distillation,
known
as
Atmospheric
Distillation.
Topping
Refinery
refinery
produces
surplus
of
fuel
with
11
Refinery run
Maximum refinery capacity.
Petromidia:
Refinery run = maximum mt crude oil per day*Utilized available
time
YEAR 2007: Refinery run = 10,427*352 = 3,670,281 mt
Romanian terminology:
Refining margin
Refining margins are the difference in value between the products
produced by a refinery and the value of the crude oil used to produce
them.
Refining margin formula = Product yields*Refinery gate prices
(Operating cost+Crude cost)
Benchmark refinery margins are margin indicators calculated for a
specific market and refinery configuration. (cracking, hydroskimming)
Mediterranean Urals Cracking Refinery margin is calculated using
Urals Med crude and a specific yield on a cracking refinery while the
Rotterdam Brent Topping Refinery margin is calculated using Brent Dtd
NWE crude, specific yield on a topping refinery.
Petromidia:
GROSS REFINERY MARGIN (,000$)= Total Finished Products (EXW
Midia) + Unfinished Products - Crude&Other Feedstock (EXW Midia)
Operating Costs
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complete
work
in
process;
partially
manufactured
products.
Type:
Unfinished Type I (90%): PLT Reformate, FCC Gasoline,
Hydrotreated Kerosene, Hydrotreated Gasoil.
13
30.75
3.72
23.65
3.37
2.98
36.49
35.39
0.86
0.25
0.78
4.52
2.12
4.26
14
TOTAL FEEDSTOCK :
CRUDE OIL/UNIT
OTHER FEEDSTOCK :
FINISHED PRODUCTS:
GASOLINE
JET FUEL
DIESEL FUEL
LIGHT FUEL OIL
FUEL OIL
VGO
GASES
PROPYLENE
LIQUIFIED PETROLEUM GAS
PETROLEUM COKE
SULPHUR
TOTAL UNFINISHED PRODUCTS:
100
97.05
2.95
97.67
30.75
2.98
36.49
0.78
2.98
5.46
4.52
2.12
4.26
6.46
0.87
0.00
Petromidia:
Romanian terminology: Randament
Utilities
The generic term for the refinery plants and units that are not
directly connected with the manufacture of products (e.g. steam
generation, water treatment, power consumed, etc.)
Romanian terminology: Utilitati
Maintenance
Routine repairs needed throughout the life of a well, usually
required more for oil than for gas wells.
Romanian terminology: Mentenanta
15
16
Dearomatization Unit
The
unit
processes
extraction
gasoline
obtained
in
the
having
in
view
the
range
of
distillation,
aromatic
obtaining
road
bitumen
and
special
types
of
bitumen
for
waterproofing works.
Since 2007 has been put into operation the department for
obtaining modified with polymers Bitumen (Eurobitumen).
Romanian terminology: Instalatie Bitum
Blending, finishing products Unit (AFP)
The unit is meant for obtaining finished products according to the
fabrication recipes and storing them in order to dispatch.
Romanian terminology: Instalatie AFPE
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Rafination
The raw material is pumped from AFP Unit into the stirrers where
the homogenization level takes place, then follows the level of reactant
treatment, then washing level, finishing and decantation
Finished products are directed by pumping towards AFP unit and
loading rack and from here they are delivered.
Polypropylene Plant
Polypropylene is obtained by propylene homo or copolymerisation
process using super-high activity or microspheric catalyst, under
temperature and pressure low conditions.
The
temperature
is
about
70-75C
and
pressure
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CATALYST
PREPARATION
HEXANE
PROPYLENE
ETHYLENE
HYDROGEN
HEXANE
POLYMERIZATION
SLURRY
METHANOL
PROCESS WATER
DEZACTIVATION
AND WASHING
WET CAKE
DRYING GAS
ATACTIC SOLUTION
SOL. NaOH
DRYING
HEXANE
RECOVERY
POWDER
STABILIZERS
PELLETIZING
BLENDING
ATACTIC POLYMER
PACKING
PALLETIZING
2. Propane-Propylene splitter
Refinery FCC Propane-Propylene mixture (75%, 92%) is feeding
the
19
in
Trading
II. Trading terminology
II.A. Market terminology
Arbitrage
The simultaneous purchase of a commodity/derivative in one
market and the sale of the same, or similar, commodity/derivative in
another market in order to exploit price differentials
Assessment
An assessment is the product of a market survey and the
application of strict methodological rules to determine the repeatable
tradable price range for a commodity during the assessed period.
Platts assessment typically aims to zero in on typical transactable
levels
by
discarding
unrepresentative
market
information
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Bearish
Believing that a price will fall. Also describes a market that shows
signs of falling.
Brent blend
The most commonly traded North Sea crude oil. Brent has an API
of about 37.5. The blend is technically a mix of crude from the Shell UKoperated Brent field and the BP-operated Ninian field. The blend is,
however, commonly referred to simply as Brent.
Bullish
Believing that a price is going to rise.
Cash market
The physical market underlying a futures or options contract.
Contract price
Periodic (monthly/quarterly/annual) price agreed between sellers
and buyers of commodities for term business. Often abbreviated to CP.
Most oil contract prices are "floating", that is they are tied to spot
market assessments published by Platts or other market pricing
services rather than set at outright levels.
Crack spread
The simultaneous purchase or sale of crude against the sale or
purchase of refined petroleum products.
These spread differentials which represent refining margins are
normally quoted in dollars per barrel by converting the product prices
into dollars per barrel and subtracting the crude price.
21
Dated Brent
A rolling assessment that reflects the price of physical wet BrentForties-Oseberg, blended crudes from the North Sea Brent and Ninian
systems, and slated to load at the Sullom Voe Terminal, no less than
ten days forward.
Demurrage
Comes from the field of vessel chartering (notably voyage
chartering) and refers to the period during which the charterer remains
in possession of the vessel after the period of time normally given to
him to charge and discharge the cargo (lay time). By extension
Demurrage refers to the amount of money that the charterer will have
to pay to the shipowner for its extra use of the vessel. In commercial
shipping, demurrage is an ancillary cost that represents liquidated
damages for delays, occurs when the vessel is prevented from the
loading or discharging of cargo within the stipulated laytime.
Differential
The difference between two prices. A large and increasing
percentage of all oil transactions are effected on the basis of
differentials, also known as spreads, rather than outright flat prices.
Discount
An amount agreed between buyer and seller to be subtracted
from an existing benchmark.
Futures contract
An agreement to make or take delivery of a commodity at a fixed
date or strip of dates in the future, at a price agreed upon at the time of
dealing.
22
23
NYMEX
New York Mercantile Exchange. Also known in the energy industry
as "the NY Merc".
Premium
An additional amount agreed between buyer and seller over and
above an existing benchmark. Also, the price paid by an option holder
to an option grantor.
Price reporters
Companies that assess prices of crude and products following
certain methodologies based on information about the deals (spot
market) performed over the day.
Industry participants use prices provided by price reporters as a
reference. The following are currently used within the industry:
Platts prices are most widely used in contracts in the oil
industry, as it was the first reporter to be established back in 1924.
Several changes in assessment methodology, crudes and products
reported have taken place over the last years.
Petroleum Argus focused initially on European product prices
but now has become a worldwide price reporter.
ICIS LOR produces crude and petrochemical price reports. ICIS
LOR prices are widely used in the petrochemical industry.
Reserves
The calculated quantity of hydrocarbons or minerals which can be
extracted profitably from a deposit, classified according to the level of
confidence that can be placed in the data. Standard classifications are:
24
Proven
reserves
Reserves
that
have
been
sampled
25
Spread (options)
An option trade in which two or more open positions are
established in order to trade the differentials and offset risk.
Option spreads may use different strike prices and/or expiry
dates.
Spread-trading
Buying one instrument/commodity and selling another, with a
view to profiting from the change in the gap between the two markets.
II.B. Transport terminology
Barge
A vessel carrying oil, usually on rivers, containing between 8,000
and 50,000 bbl, or weighing 1,000 to 10,000 tonnes. In the US, barges
can be up to, and occasionally over, 100,000 bbl in capacity.
Barrel
A volumetric unit of measure for crude oil and petroleum
products. 1 barrel is 42 US gallons, 35 imperial gallons or 159 liters.
There are roughly 7.33 bbl of crude oil to a tonne, but the precise
conversion obviously depends on the specific gravity of the oil.
Bill of lading
Documentation legally demonstrating a cargo has been loaded.
The bill of lading is signed by the captain of the ship and the contract
supplier. Abbreviated as B/L.
CIF
Cost, insurance and freight charges for shipping products. CIF
prices include these charges.
DAF
Delivered At Frontier. A popular INCOTERM among eastern
European petrochemical producers. A different railway gauge means
26
Free on Board
Usually abbreviated to FOB. FOB prices exclude all insurance and
freight charges. Most oil is sold either FOB (effectively priced at the
loading port) or CIF (effectively priced at the delivery port).
Laycan
The range of dates during which a ship will load.
Med
Market abbreviation for Mediterranean.
27
NWE
Oil and petrochemicals market abbreviation for Northwest Europe.
P&C
Private and confidential. Used by commodities traders to describe
non-public transactions.
P/C
Part-cargo.
Tankers
Size is typically measured in deadweight tonnes (cargo capacity
for carrying water).
Here are tanker sizes and typical abbreviations (in deadweight
tonnes)
GP General Purpose
16,500 - 24,999
MR Medium Range
25,000 - 44,999
45,000 - 79,999
80,000 - 159,999
160,000 - 319,999
320,000 - 549,000
Also:
Handysize 35,000
Panamax 65,000
Aframax 80,000
Suezmax (Million barrel) 130,000
Capesize: Any vessel, usually carrying dry bulk cargoes, that is
too big to navigate the Panama or Suez Canals.
28
Tonne
The
standard
abbreviation
is
mt.A
tonne,
or
metric
ton,
29
30
I.B. Costs
Petromidia:
Costs
A financial measurement of the resources used or given up to
achieve a stated purpose.
Romanian terminology: Cost
31
Fixed costs
Costs that remain constant in total amount over a wide range of
variations in the level of processing activity.
Romanian terminology: Costuri fixe
Variable costs
The total costs incurred to produce energy, excluding fixed costs
that are incurred regardless of whether the resource is operating.
Variable
costs
usually
include
fuel,
increased
maintenance
and
additional labor.
Romanian terminology: Costuri variabile
Manufacturing costs
The Costs incurred to produce or create a product. It includes
direct materials, direct labor, and manufacturing overhead costs.
Direct materials
Are materials that are: (1) included in finished products, (2) used
only in the manufacture of the product, and (3) clearly and easily
traceable to the product.
Direct labor
Is the cost of labor by employees actually working on materials to
convert them into finished products.
Manufacturing overhead
Includes all other manufacturing costs, except that are accounted
for as direct material and direct labor.
32
Prime costs
The sum of direct materials and direct labor costs.
Conversion costs
The sum of direct labor and manufacturing overhead costs.
Product costs
Are costs incurred in the manufacture of products.
Period costs
Are expensed in the period in which they are incurred.
Administrative costs
Non-manufacturing
administrative
functions
costs
and
that
various
include
staff
the
costs
departments
of
top
such
as
33
Stock Levels
Quantity:
Total Stock
Holding Stock
Technological Stock
Price:
Input Price
Mark-to-Market Price
Value:
Input Value
Mark-to-Market Value
I.D. Maintenance
Utilizare timp disponibil
Oprire planificata
Revizie planificata
Indice utilizare
Opriri realizate
TDP
34