ECONOMICS 743
Developing the running plan
In most refining companies with more than one refinery installation running plans
are developed in the company’s corporate offices. In this way access to the required
data (such as crude availability, product slate etc.) are readily available to the planner.
Normally running plans are published on a monthly basis. Again normally these plans
cover a period of 18 months. The early part of the period, say the first six months, will
be studied on a monthly basis, and the remainder on a quarterly basis.
The use and purpose of the refinery running plans
The running plans are designed to provide corporate management with data with
respect to the following:
1. The anticipated pattern of production i.e. the surpluses and the deficits that are
likely to occur.
2. The likely operations of the refineries in the company. This covers crude runs and
refinery throughputs.
3. Any inadequacies in refining capacities to meet projected profit margins. This may
form the basis for refinery expansion program. (This is dealt with in a separate
item of this section of the chapter).
4. Indication as to where and when extra business can be accommodated in the
company’s operating plan.
5. The basis for financial forecasting and estimates of profit and loss.
The planning schemes
The content of the running plan will conform to the rules of planning listed and
discussed earlier. The development of all running plans begin with schematic diagrams
giving as many options as possible of the routes by which a required product slate
can be achieved from a particular crude availability slate. The mechanism to arrive
at this is not unlike the process configuration study described in Chapter 2 of this
Encyclopedia. In the case of the plan schemes however the objective is to fit the
process streams to a fixed refinery configuration in order to meet a product slate. In
these schemes excess products are corrected by either reducing crude throughput or
using the stream as blend stock or feed to other unit(s). Deficits in the product slate
may be solved by importing the necessary product components to complete a scheme.
An example of a typical planning scheme to meet middle distillates (Jet Fuel in this
case) and specialties (White Spirit in this case) is given as Figure 17.1.1.
Several of such schemes may be developed to meet this particular product slate criteria.
Each of these will be subject to an economic analysis, and this may extend to one or
more of the company’s several refineries. These economic analyses are made using