Transcription of Refinery Operating Cost
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Refinery Operating Cost
CHAPTER NINETEENR efinery Operating CostPetroleum refining is a capital-intensive business. A grassroots refin-ery of average complexity processing 100 mb crude per day may cost abillion dollars to build. For a Refinery to be economically viable, itsoperating cost must be minimized. Joint-ownership refineries are builtand operated with these objectives in view. Large throughput refineriescan be built with initial investment spread over the resources of twocompanies instead of one. As many Operating cost elements, such asdepreciation, insurance, and personnel, cost remain constant with refinerythroughput, Operating cost per barrel crude processed is reduced, therebyincreasing Refinery profit for the participants.
Refinery Operating Cost Petroleum refining is a capital-intensive business. A grassroots refin- ... as unit shutdowns, emergency repairs, and large expenditure on replace- ... solid products, such as asphalt and sulfur, in each operating period are segregated and allocated to the participants on the basis of their
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