Economics of Oil Refining

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Architecture of an oil refinery

Questions

  • What is the average cost of setting up a basic oil refinery?
  • How long does it take to set up a plant?
  • How do you decide what products to produce. How does that affect (and is affected by) the kind of crude oil you process?
  • What are the different kinds of crude and where do they come from? How is pricing decided for different kinds of crude?
  • What kind of variation can you do in the output that your refinery produces, without making major changes to equipment?
  • What are the determinants of the gross refining margin?
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