Business plan for oil company
OIL REFINING INDUSTRIES HISTORY
GLOBAL BUISNESS BECAUSE CRUDE OILS.
CAN BE TRASPORTED AT RELATIVELY LOW COST BY SEA AND PIPELINE
WORLDWIDE DEMAND FOR SUCH PRODUCT
PRINCIPLE FACTORS AFFECTING REFINING MARGINS
• The demand for and prices of refined petroleum products relative to the supply.
• The cost of crude oils and other feedstock’s .
• The configuration.
• The capacity.
• The utilization rates of refineries.
QUALITY OF REFINED PETROLEUM PRODUCTS PRODUCED BY ANY GIVEN REFINERY
• depends on the types of crude oil used as feedstock and
• the configuration of the refinery.
LIGHT AND SWEET CRUDE OILS ARE
• more expensive and
• generate greater yields of higher value refined petroleum products, such as
1. GASOLINE,
2. AVIATION FUELS
3. DIESEL.
HEAVIER AND SOURER CRUDE OILS ARE
• less expensive
• generate greater yields of lower value petroleum products, such as
1. FUEL OILS.
2. CONFIGURATION OF CERTAIN REFINERIES
3. NORTH AMERICA - production of gasoline
4. OTHER REGIONS - production of middle distillates, such as diesel and
5. aviation fuels.
6. SPECIALTY PRODUCTS - such as base oils, naphthenics and bitumen.
7. OIL REFINERIES CAN GENERALLY BE DIVIDED INTO TWO PRINCIPAL
8. CATEGORIES:
9. SIMPLE HYDROSKIMMING REFINERIES
10. Primarily carry out the distillation process while complex refineries carry out two additionaL
11. functi ...