Fundamentals of Refinery Economics and Blending - FREB 

CPE Credits Awarded: 8
Categories: Oil Industry, Refining

Course Date Duration Venue Price Register by Date Register
20 Apr 2018 1 Day JW Marriott Houston Downtown Country: us
$ (USD) 1,170.00
13 Apr 2018
27 Apr 2018 1 Day Regus Harbourfront Country: sg
$ (USD) 1,680.00+7%GST
23 Apr 2018
15 Jun 2018 1 Day Philadelphia, PA Country: us
$ (USD) 1,170.00
11 May 2018
14 Sep 2018 1 Day Singapore, Singapore Country: sg
$ (USD) 1,680.00+7%GST
10 Aug 2018
21 Sep 2018 1 Day Calgary TELUS Convention Centre Country: ca
$ (USD) 1,170.00+5%GST
17 Aug 2018
28 Sep 2018 1 Day London, UK Country: gb
£ (GBP)830.00+20%VAT
24 Aug 2018
19 Oct 2018 1 Day Houston, TX Country: us
$ (USD) 1,170.00
14 Sep 2018
07 Dec 2018 1 Day New York City, NY Country: us
$ (USD) 1,170.00
2 Nov 2018


This one-day workshop is designed to follow on from our popular Fundamentals of Petroleum Refining course, by focusing on the topics of refinery economics and blending. The course reviews the fundamentals of refining planning and optimisation, and delegates will learn what affects refinery profitability, how margins are calculated and the trends in refining and product demand.  We’ll also cover product specifications, blending and valuation.


Class delegates include those new to refining, as well as non-technical staff who wish to learn more about oil refining, including support staff, analysts and management in the areas of supply, operations, trading, marketing, risk management, finance, contracts and IT.


  • Blending
    • Blending value
    • Blending issues – stability, minimizing giveaway, specification margins
    • Linear and non-linear properties
    • Blending calculation methods, including the use of blending indices and numbers
    • Blending optimization
  • Product quality and specifications
    • Fuel quality requirements
    • Key quality test methods for petroleum products
    • Product specification trends and their impact on refining
    • For major liquid fuels (motor gasoline, jet fuel/kerosene, diesel/gasoil and residual fuel oil):
      • Qualities of blendstocks from different refinery units and how they blend together
      • Key specifications and trends
      • Blending considerations and issues, including the use of additives and biofuels
      • Types and use of additives
  • Planning and optimization:
    • Refinery planning cycle
    • Use of linear programming models: inputs, outputs, calculation methods and limitations
  • Maximizing value
    • Crude oil selection: crude quality, characteristics, purchase options, pricing considerations and other costs
    • Product output and determinants of product value
  • Refinery configuration and flexibility:
    • Configuration and complexity and its impact on feedstocks, product yield configuration and margins
    • Process flexibility
  • Managing risk:
    • Sources of risk for refiners
    • Managing risk:
      • Supply and offtake agreements
      • Hedging strategies using futures, swaps and options
  • Refining costs:
    • Capex – factors to consider
    • Fixed costs
    • Variable costs
  • Refining outlook
    • Development and trends in refining, including the impact of environmental regulations
    • Changes in demand and trade of petroleum products

The presentation is supplemented by quizzes, as well as exercises to be completed in teams. The exercise cover product blending (calculating the quality of motor gasoline when blending various blendstocks), refinery economics (reviewing the economics of producing reformate and selling it or blending it into gasoline) and refinery margin hedging (reviewing the risks that a refiner faces and the different type of hedging strategies available.)


“The instructor was informative, knowledgeable, and an extremely engaged instructor. I found the course highly useful and had many practical day to day impacts. A very worthwhile and comprehensive course.” T.D., Cenovus

UK: (+44) 1865 250521   |   USA: (+1) 713 343 1699   |   Singapore: (+65) 6722 3845


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Mennta Energy Solutions (formerly The Oxford Princeton Programme, Inc.) is not affiliated with Princeton University, Oxford University, or Oxford University Press.