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provides The topic of process unit feed and blend stock evaluation is a wide-ranging and sometimes contentious issue. This is especially true when the subject is crude oil evaluation and is usually a result of miscommunication. Below are several points to consider when creating an evaluation system for raw materials: · The goal should be to provide information that permits the user to make the correct decision on a purchase or sale opportunity within the time frame allowed. · It should provide a relative economic value for a given material in every situation of common interest. A given material will have different values depending on whether it is being bought or sold, blended or processed. · The key to fast and efficient evaluations for purchases of raw materials like crude oil is to recognize that the decision only requires answers to two questions: · Are any of the choices profitable? · Knowing the exact level of profitability for each choice is not a requirement for making the correct decision. · For the sake of speed most evaluation systems calculate relative profitability based on one of three basic methods. Each method will give a different value for the same material. Consequently, comparing values from different methods is incorrect. This point is often the root source of confusion in evaluations. The three basic evaluation methods are:
One of the many services Refinery Consulting provides is advice and assistance on the proper methods of process unit feed and blend stock evaluations. We realize that finding the right way for a client depends on the client's objectives and data quality available, not some absolute idea that others should follow. Our evaluation experience extends from plant operations to corporate economics and into the commercial trading realm. We have designed, built, and implemented evaluation systems and programs to meet the different and changing needs of our clients. Refinery Consulting is ready to assist clients with their specific feed and blend stock evaluation needs. |