October 17, 2019

Refinery Energy Demand and Cost Analysis

Stratas Advisors

Globally on average refineries consume 0.2 MMBTU/BBL of energy to convert crude oil to higher-value products. The analysis below looks into the oil refineries energy demand by configuration type on a regional basis. The analysis also calculates the fuel cost consumed by region.

The table below includes the energy cost by configuration by region. In the North America the complex refinery configuration (primarily NI>7), refineries consume 0.4 MMBTU/BBL., while Asia hydroskimming consumes 0.1 MMBTU/BBL. The energy consumption estimates are based on refinery throughput, refinery unit capacities, and their corresponding energy intensities by refinery units.

Energy Demand (MMBTU/BBL)

Hydroskimming

Cracking

Coker

Complex

Regional Utilization

(%)

Regional CDU capacity, (MBPD)

Africa

0.12

0.19

0.21

0.24

68%

3,313

Asia

0.10

0.24

0.13

0.25

79%

35,257

Europe

0.22

0.31

0.20

0.30

88%

14,469

Latin America

0.12

0.20

0.21

0.21

71%

7,496

Middle East

0.13

0.24

0.14

0.27

79%

9,923

North America

0.17

0.30

0.16

0.40

91%

21,280

Russia & CIS

0.14

0.23

0.22

0.30

77%

8,213

Global Average

0.14

0.25

0.18

0.28

82%

99,952

Source: Stratas Advisors

The table below compares the cost between bottom of barrel, fuel oil and refinery off gas-based refinery fuels. Even though petcoke tends to be cheaper, associated costs, (environmental, transportation, handling) makes it unattractive compared to fuel oil or natural gas. North America natural gas cost 2.6 USD/MMBTU in 2019, which results in 0.56 USD/BBL for refinery energy cost as compared to Asia or Europe, which are 2.18 USD/BBL and 1.36 USD/BBL respectively.

Fuel

NW Europe (USD/MMBTU)

USGC (USD/MMBTU)

Singapore (USD/MMBTU)

NW Europe Energy Cost (USD/BBL)

USGC Energy Cost (USD/BBL)

Singapore Energy Cost (USD/BBL)

Fuel Oil 3.5%

6.12

6.69

7.54

1.30

1.42

1.60

Natural Gas

6.43

2.62

10.26

1.36

0.56

2.18

Thermal Coal

2.46

2.44

2.63

0.52

0.52

0.56

Source: Stratas Advisors

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