Which explanatory variables describe the efficiency of the oil refining industry?
And the explanatory variables describing the efficiency of the oil refining industry (crude oil production, energy use, renewable energy consumption, R&D expenditure, etc.) were selected to form panel data for OECD countries from 2005 to 2016. These panel data generally have heterogeneity and endogenous problems of explanatory variables.
How to calculate energy consumption of oil refining plants?
Solomon Associates analyzed the production capacity of oil refining plants globally to derive the standard energy consumption of oil refining plants. The EII is calculated by multiplying the actual energy ratio of the oil refinery by the standard energy consumption by 100 ( Worrell et al., 2000 ). 2.3.
How is the oil refining industry’s efficiency derived?
The oil refining industry’s efficiency is derived from the prices of petroleum products (Naphtha, Gasoline, Kerosene, Diesel, and Fuel Oil) using the portfolio theory. The panel data was constructed using the following dependent variables, the crude oil production efficiency, energy consumption, renewable energy consumption, and R&D investment.
What is overall refinery efficiency?
Overall refinery efficiency is the ratio of the energy present in all product streams divided by the energy in all input streams. Although overall energy efficiency at the refinery level can be accurately estimated, a method is required to allocate the refinery¡¯s total energy use and emissions among the various refined fuel products.
