Stock Infographics

[Infographic] An overview on crude oil and refineries

DonkeyStock
Publish date: Wed, 19 Jul 2017, 12:02 AM
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There are 6 refinery plants in Malaysia and 3 refinery plants in Singapore. The current refining capacity of Malaysia plants stands at 539,000 barrels per day (bpd) and is expected to add another 300,000 bpd capacity once RAPID commence operations. The refinery in Malaysia are located in Kerteh and Kemaman in Terengganu, Sungai Udang Melaka, Pengerang Johor and 2 refinery in Port Dickson Negeri Sembilan. The current refining capacity of Singapore stands at 1,380,000 bpd. Shell operates a refinery in Pulau Bukom while Exxon Mobile and Singapore Refinery operates refinery at Jurong Island.

 

Crude oil undergoes a process called fractional distillation in the refinery plants. Crude oil is being heaten to crack down to shorter hydrocarbon chain under different temperature. The major by products are refinery gas, petrol, naphtha, kerosene, diesel, lubricating oil, fuel oil and bitumen.

 

Here are some of the factors that affects the cost of input for a refinery plant:

·         Crude quality (Transport method, local region demand and supply)

·         Energy Inputs (Electricity, steam)

·         Blending components (Gasoline, biofuel, gas, liquids)

·         Supply Chain management

·         State flexibility

·         Fiscal and regulatory regime

·         Scale and technology

·         Hedging (Feedstock, currency, products)

 

And here are some of the factors that affects the price of output for a refinery plant:

Fuel and energy

·         Wholesale or retail sales

·         Export or local sales

Specialties product

·         Specialist market (Marine, Aviation, Asphalt)

·         Brand Quality

Petrochemical

·         Value chain of the petrochemical

·         Export of local sales

Lubricants

·         Base oil plant

·         Blending plant and storage

 

However, a huge chuck of refinery profit relies on crack spread, which is the profit margin of an oil refinery made by cracking long chain hydrocarbon into shorter chain petroleum products. Some of the factors that affect crack spread includes:

·         Crude Delivery Method

·         Crude Cost

·         Refinery Efficiency

·         Dispatch Facilities

·         Refinery Location

 

Different type of crude oil affects the profitability of refinery plant. Here are some of the technical term you need to know before delving further

·         API Gravity is a measure of how heavy or light a petroleum liquid is compared to water. If API gravity is greater than 10, it floats on water. The greater the number, the lighter the petroleum. Heavier crude are harder to refined

·         Sulphur content: Sulphur is an impurities found in crude oil. When sulphur level is more than 0.5%, the oil is called sour. Impurities need to be removed before the sour oil can be refined into petrol

And here is a list of benchmark crude oil, unconventional oil and crude oil produced in Malaysia

 

Crude Name

Major Production Area

API Gravity

Sulphur Content (%)

       

Benchmark Oil

 

 

 

Brent Blend

North Sea

38.7

0.31

WTI Blend

US

38.7

0.45

Arabian Light

Saudi Arabia

33.4

1.8

Isthmus

Mexico

33.4

1.25

Bonny Light

Nigeria

33.4

0.16

Urals

Russia

31.7

1.35

Fateh

Dubai

31.4

2

Tapis

Malaysia

45.2

0.03

       

Unconventional Oil

 

 

 

Shale Oil

North Dakota

40.1-50

0.15 - 1

Oil Sand

Alberta Canada

10

5

       

Malaysia

 

 

 

Bintulu Condensate

Bintulu, Sarawak

69.3

0.03

Dulang

Terengganu

37.6

0.05

Kikeh

Sabah

34.9

0.11

Labuan

Labuan

32

0.09

Tapis

Terengganu

45.2

0.03

Miri

Miri, Sarawak

32.3

0.08

 

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Discussions
Be the first to like this. Showing 7 of 7 comments

Flintstones

Good

2017-07-19 07:25

yruns1

wow this is great stuff. Thanks!

2017-07-20 13:32

yruns1

forgive my ignorance.. can you please enlighten me on the difference between the refineries mentioned here and the plants under Lotte Chemical in Johor or under BASF-Chemicals in Terengganu?
Thanks!

2017-07-20 14:15

DonkeyStock

Different refineries has different complexity. Nelson Complexity Index (NCI) is an index to determine its complexity. A more complex refinery can produce more products and can use more type of crude oil as input. Here is Lotte Titan product:http://www.lottechem.my/products/productGuide_view.asp?code=C201 and here is Petronas BASF product http://www.basf-petronas.com.my/products. You can say BASF Petronas has a more complex output product, but its not a guarantee of profitability. Profitability still depends on the crack spread margin between input price and output price

2017-07-27 23:54

yruns1

Thanks for your explanation. However since your infographic mention MY only have 6 refinery, shouldn't the number be more?

2017-07-27 23:59

newbie5354

Using this blog how to forecast Q3 QR?

2017-09-29 22:27

brettmsaevitzon

Hi, I have read your blog and found it very informative.You pointed out several things that I will remember for years to come. I look forward to reading your next informative work. Thanks!

2021-08-13 14:51

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