Refinery Economics Seminar

Presented by Today’s decision makers face uncertain future markets. While

profit opportunities are hard to find, Pacesetters have learned that
Joe Barth an experienced optimization team following best practices gives
As a Senior Consultant, Joe has been them the best chance to maximize refinery profit.

with Solomon since 2004. His career

includes 33 years with ExxonMobil in
Planning & Optimization of refining
petrochemical complexes. Joe has a BS
in Chemical Engineering from Auburn
University and an MS in Engineering
from the University of Houston.
Other Programs
Training
• Problem Solving
• How to Use the Data
• Hydrocarbon Loss Management
• Fundamentals of the Petroleum
Downstream Industry
Consulting Products
• Performance Improvement (NCM³)
• Best Practices Assessment
• 3D Performance Analysis
• Transaction Support Services
Seminar Summary
This seminar covers the economic and optimization skills needed
to maximize refinery profit. Practical, hands-on examples are
used to illustrate Solomon’s unique approach to the intricacies
of marginal economics and the workings of Linear Program
(LP) models. In addition, attendees will discuss Planning &
Optimization Best Practices.
Participants will learn:
• Differences between average and marginal costs
• How to calculate refinery netback prices
• Why the “herd mentality” is so common in the industry
• How to use LP models to guide decision making
• How to evaluate crude and feedstock purchase opportunities
• How to evaluate incremental product sales
• Limitations of Shadow Values
• Planning & Optimization Best Practices
Day 1: Day 2:

• Capital Effectiveness Review Overview of Petroleum Markets Using the LP Model to Guide
Marginal Revenue & Netback Decision Making
Calculations Case Studies
Who Should Attend Marginal Cost Curves • Using Marginal Values
The course is intended for anyone who takes part Law of Diminishing Returns • Value of Crude Oil
in the development of refinery operating plans or in Refining • Value of Cracker Feed
helps decide business strategy. These seminars are Average Profit and Incremental • Optimizing Gasoline
not just for the “economic analyst”, they are also Profit
valuable to crude and feedstock traders, product Production
marketers, supervisors, and process engineers. No LP Model FAQs
Planning Best Practices
prior knowledge of refinery economics or use of LP Graphic Example of How the LP
models is required. Q&A Session
Model Works
Shadow Values
Simple Spreadsheet Example
LP Model
About Solomon Associates Having provided benchmarking and performance improvement consulting services
since 1980, Solomon has become “the” Performance Improvement Company for the
energy industry. We help clients realize the full technical and financial potential of
their existing assets and new capital projects.

As an experienced company that values confidentiality and long-term relationships,

we strive to develop and hone the most creative and effective strategies to
maximize client performance through our Comparative Performance Analyses™
(CPA™) studies and consulting services. Our team of experts has on average 25 years
of industry expertise in numerous fields. At Solomon, our goal is to become your
trusted advisor and improve each operation we analyze.

Today, companies in more than 70 countries rely on our benchmarking, performance

improvement programs, and unique methodologies to keep their businesses
competitive.

Contact
Joe Barth
Senior Consultant
Phone: 972.739.1790
Fax: 972.726.9999
Email: Joe.Barth@SolomonOnline.com

One Lincoln Centre

5420 LBJ Freeway
Suite 1400
Dallas, TX 75240 USA
www.SolomonOnline.com

© 2012 HSB Solomon Associates LLC, a wholly owned subsidiary of HSB Group, Inc.