Market research and analysis
Refining margins and fundamentals.
State of the art estimates of refinery yields, variable costs and carbon emissions are used in models that track refining margin fundamentals at key market locations. With these models, we analyse refining fundamentals, key relationships between crude and product prices, as well as the incremental economics of several refinery process units
The analysis follows the same meticulous approach, grounded on deep knowledge of the techno-economics of refining that used to set Purvin&Gertz apart from the rest of the industry.
Taking a forward looking view of refining fundamentals, we can provide forecasts of the price of several crude oils and refined products.
Refining carbon costs
Our models include detailed estimates of carbon emissions. We have representative benchmarks for several crudes and several refinery configurations, of which we track carbon costs based on European ETS carbon prices.
We track and analyse the carbon costs of European refineries under ETS based on verified emissions and prevailing carbon costs.
Bespoke market research
We carry out bespoke market research on many topics related to refining fundamentals using our industry experience, methodology and databases.
Consulting
Strategic Analyses
We make strategic analyses and offer advice based on thorough understanding of many aspects of the business environment for refining. Technical competence, industry knowledge and analytical abilities make our work unique. We can customize our analyses to support specific decisions or apply it to specific projects.
Crude Oil Valuation and Marketing
Our offering is aimed at supporting the crude oil marketing functions of independent oil companies or other organizations that are interested in understanding how price differentials are set in the marketplace.
With strong knowledge of the global refining industry and good grasp of the techno-economics of refining, we understand the crude oil selection drivers of different types of refineries and how their configurations influence the kind of crudes they are most likely to process.
With our refinery models we can make accurate estimates of the refining value of crude oils. These can be used to track, explain and forecast the price differentials between crude oils.
Where independence is required, we can develop crude oil valuation mechanisms to settle the difference in market value between crude oils commingled in shared pipelines.
Development and economic analysis of projects
We have large experience of conducting economic analysis of projects. We can develop refinery investment projects up to the Block Flow Diagram level and carry out Class V cost estimates to provide an initial assessment of the viability of refinery projects.
Risk management
We are uniquely qualified to estimate the loss of income caused by possible or actual unexpected events in the oil downstream sector.
Expert Witness
We are qualified to act as expert witness in disputes and litigation on matters that are strictly related to our core expertise as defined above. We are extremely well qualified to assess the “quantum” of disputes when this concern aspects related to refining economics.
Training
We offer training in refining economics delivered at your premises. The training material draws from 30 years of industry knowledge.
The course is equally balanced between explaining refining economics from the standpoint of how industry fundamentals set prices and margins (the external environment) and how refineries optimize their operations (the internal environment). A lot of emphasis is put on the interrelationships between market trends and refinery operations, both in the short term and in investment strategies.
The course takes on many topics that require the application of economic concepts, such as the margins of refineries with different complexity, feedstock selection, optimization, the fundamentals that set prices, explanations of historical margin cycles and a recap of all aspects that contribute to make refineries competitive internationally.
The full content of our standard course will cover five days. We can also deliver shorter versions to last three or four days. Starting from the material of the standard course, we can also develop bespoke courses with higher focus on specific topics.
A description of the full content is available below:
Download pdf here
We also deliver public courses on behalf of International Business House.
- A three day course Refining Economics.
- A four day course with a visit to a refinery as a fifth day, Refining Economics | visit to Sarlux Refinery.