The resultant refinery products are directly related to the characteristics of the processed crude. The crude oil cost represents the largest portion of the overall refinery cost, which is usually over 80% for a typical refinery.
What is a petroleum refinery?
A petroleum refinery is a set of installations intended to transform crude oil, generally unusable as such, into petroleum products: motor gasoline, jet fuel, diesel fuel, fuel oil, lubricants, liquefied petroleum gases, naphtha, and so on. The products consumed in largest volumes are motor gasoline, motor diesel, and heavy fuel oil.
How much does a crude oil refinery cost?
But the majority of refineries in operation is largely amortized and therefore operates with lower refining costs, in the order of $3 to $5 per barrel of crude oil processed. As we have seen, fixed costs (personnel, maintenance, and overheads) and capital costs represent the bulk of the total cost of processing crude oil.
What is a refinery model?
In such cases, the refinery model can be used to determine the amount of various crude oil types to be purchased and stored at each defined period under a given price change scenario or computing the unit margin of each crude oil.
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