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Why are some of the world’s best refineries more efficient than some of the world’s newest refineries?

Oct-2024

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Woody Shiflett, Blue Ridge Consulting LLC, blueridgeconsulting2020@outlook.com

One phrase sums it up: ‘Operational Excellence’. A refinery that has in place systems, training, and regular refresher training for safety, maintenance, environmental stewardship, and operation procedures, and is led by true leaders – not merely managers – who set clear goals and targets, reinforce them with measurable and transparent metrics, hold all personnel equally accountable, and reward stellar performance can achieve extraordinary efficiencies and results. Such leaders exhibit the ability to carefully listen to their people, admit their own shortcomings, and adjust accordingly, embrace effective new ideas, and build and maintain a team that has esprit de corps. ‘Best’ and ‘newest’ are not necessarily synonymous. I am fortunate to have as a friend a retired refinery general manager that did this.

Oct-2024
Mark Schmalfeld, BASF Refinery Catalysts, mark.schmaldfeld@basf.com

It may seem counterintuitive, but it is not uncommon for some of the world’s best refineries to be more efficient than some of the newest refineries. This can occur due to several reasons:

- Technological advancements: Older refineries may have undergone extensive upgrades and investments in advanced technologies to improve efficiency and operational performance. These refineries have had time to refine their processes, optimise equipment, and implement innovative solutions that enhance efficiency and reduce energy consumption.

- Experience and expertise: Refineries with a long operational history have accumulated vast experience and expertise in refining operations. They have developed a deep understanding of their processes, feedstocks, and equipment, allowing them to optimise operations and achieve higher efficiency levels through continuous improvement efforts.

- Process integration: Older refineries often have well-established infrastructure and process integration. They have had the opportunity to integrate various units and processes to maximise efficiency, minimise energy losses, and optimise resource utilisation. Newer refineries may still be in the process of fine-tuning their integration and achieving optimal operational synergy.

- Flexibility and adaptability: Established refineries have the advantage of being able to adapt to changing market conditions and regulatory requirements. They have the ability to adjust their operations, upgrade equipment, and implement new processes to meet evolving industry standards and market demands, making them more efficient and competitive.

While it is not uncommon for older refineries to be more efficient than newer ones, it is important to note that newer refineries also have many advantages. New refineries often benefit from the incorporation of the latest technologies and equipment from the outset, resulting in higher energy efficiency and reduced environmental impact. Additionally, newer refineries may have the advantage of being built in regions with access to abundant and lower-cost feedstocks, giving them a competitive edge in terms of production costs. New refineries are also often built in regions with growing markets, giving them an edge in terms of distribution costs for their refined products.

Ultimately, efficiency levels can vary widely across refineries, regardless of their age. Each refinery’s performance depends on a multitude of factors, including investment in technology, operational expertise, process optimisation, and market dynamics. Continuous improvement efforts and the adoption of best practices are essential for both older and newer refineries to maintain and enhance their efficiency levels in an ever-evolving industry.

Oct-2024
Romain Roux, Axens, romain.roux@axens.net

The world’s best refineries often outperform the newest ones due to their focus on efficiency and continuous improvement. According to Solomon surveys, these refineries are identified as being 20% more energy efficient, having lower costs, being more reliable, and being 60% more profitable.

Efficiency is not solely a product of new technology or infrastructure but also of operational practices. These refineries have balanced their key financial metrics with key operating metrics, avoiding an excessive focus on operating costs. They have also adapted to their regional economic environments, which prevents a refinery from being penalised for its location.

Catalysts play a pivotal role in the petroleum refining process, enabling efficient conversion of crude oil into valuable fuels and products. High-performance catalysts lead to higher productivity and lower energy consumption, resulting in optimal operational efficiency.

On the other hand, decarbonisation through energy efficiency is a critical aspect of refinery operations. Crude oil refining accounts for 6-8% of all global industrial energy consumption. Therefore, improving energy efficiency is critical for all refineries and in all processes, with a focus on the main energy consumers. Energy efficiency opportunities available for petroleum refineries include energy management systems, energy recovery, steam generation and distribution, heat exchangers (using high-efficiency heaters), process integration, process heaters (very high efficiency or electrical heaters), and hydrogen management and recovery. These measures not only reduce energy consumption but also contribute to environmental sustainability.

In conclusion, the world’s best refineries can be more efficient than some of the newest ones because they continuously improve their operations, adapt to their environments, and balance their financial and operating metrics. This focus on efficiency and adaptability allows them to achieve superior performance. Therefore, it is crucial for new and existing refineries to adopt these best practices and continuously strive for improvement. This will not only enhance their efficiency but also contribute to a sustainable and profitable future.

Oct-2024