Training Course: Crude Economics

Introduction

The Crude Economics training program, developed by Global Horizon Training Center, is designed to provide a comprehensive understanding of the economic and strategic decision-making processes related to crude oil selection, procurement, and utilization — specifically from the perspective of professionals in the Manufacturing Planning Department.

With crude oil accounting for the largest portion of a refinery’s operating cost, making informed decisions on crude purchases, blends, and processing strategies has a significant impact on profitability. This course helps planners and strategists understand how crude oil economics affect planning outcomes, refinery configuration, product yields, and overall refinery margins.

Objectives

By the end of this course, participants will be able to:

• Understand the global and regional crude oil markets and pricing mechanisms.

• Evaluate different crude grades based on quality and processing characteristics.

• Perform basic economic analysis to compare crude slates for planning purposes.

• Align crude selection with refinery configuration, constraints, and desired product yields.

• Support strategic and tactical decision-making through economic modeling and scenario planning.

• Integrate crude economics into medium- and long-term manufacturing planning.

Organizational Impact

Organizations that invest in this program will experience:

• Improved alignment between crude procurement and refinery planning strategies

• Enhanced profitability through optimal crude selection and blending decisions

• Strengthened collaboration between planning, trading, and operations teams

• Reduced risk in crude purchasing by understanding economic implications

• Increased agility in responding to volatile crude and product markets

• Empowered planners who can contribute to strategic refinery economics

Target Audience

This course is designed for:

• Manufacturing and Production Planners

• Crude Planning and Scheduling Analysts

• Strategic Planning and Economics Engineers

• Refinery Optimization and LP Modeling Teams

• Supply Chain and Trading Support Personnel

• Operations and Process Engineers involved in crude evaluation

• Finance Analysts supporting manufacturing economics

Outlines

Day 1: Fundamentals of Crude Oil Markets

• Overview of Global Crude Oil Supply and Demand

• Key Benchmarks: Brent, WTI, Dubai, and OPEC Pricing

• Types of Crude Oil: Sweet vs. Sour, Light vs. Heavy

• Pricing Mechanisms and Differentials

• Crude Contracts, Freight, and Delivery Considerations

• Case Study: Price Movement Impact on Refinery Margins

Day 2: Crude Assay and Quality Considerations

• Understanding Crude Assays and Their Interpretation

• Key Parameters: API Gravity, Sulfur, TAN, Metals

• Yield Patterns and Compatibility with Refinery Configuration

• Processing Challenges with Different Crude Grades

• Lab Session: Analyzing Crude Assay Reports

• Exercise: Match Crudes with Refining Objectives

Day 3: Crude Slate Optimization and Planning Integration

• Crude Selection and Blending Strategies

• Constraints from Process Units (CDU, VDU, FCC, Hydrocrackers)

• Impact of Crude on Product Yield, Quality, and Margins

• Short-Term vs. Long-Term Crude Planning

Day 4: Economic Evaluation and Scenario Analysis

• Calculating Gross Product Worth and Netback

• Margin Analysis: Crack Spread, Net Refining Margin, Refinery Gate Value

• Crude Valuation Tools and LP Model Integration

• Sensitivity Analysis and Risk Factors (Price Volatility, Opex, Specs)

• Case Study: Crude Switching Decision Under Market Pressure

Day 5: Strategic Alignment and Real-World Application

• Coordinating with Trading, Supply, and Operations Teams

• Responding to Market Shocks (Geopolitical, Supply Disruptions)

• Role of Crude Economics in Corporate Strategy

• Final Group Presentations: Crude Selection for a Hypothetical Refinery

• Wrap-Up, Feedback, Q&A

• Certificate Distribution and Closing Remarks