The Olefins Business - Markets and Economics

Course Summary
The course covers the technology, economics and markets for the olefins business. It will explore the economics of different feedstocks and the balance of supply and demand. There will be a full discussion about the importance of integration downstream to derivatives.
Please note: a laptop and up-to-date version of Office would be an advantage in order to engage in market data; however it is not essential.
What You Will Learn

• The sources of olefins
  
• The principle outlets and growth for trends for olefins
  
• The factors affecting olefin supply and demand
  
• How to distinguish between the choice of feedstocks for olefin production
  
• The economics of olefin production
  
• Pricing strategies for olefins
  
• Alternative technologies for olefin production
  
  
• Suitability:
  Delegates encouraged to attend include managers, planners, business development, commercial and marketing supply personnel from both established petrochemical producers and new entrants in the aromatics business. Additionally, marketing and trading staff from the refining and gasoline industry will benefit, as well as logistics or support staffs are urged to attend. The course will also be of practical use to downstream consumers and derivative manufacturers.
  Refining and Feedstocks
  
  
  
  • Crude oil, refined products, alternative uses for naphtha, the role of gasoline, LPG as a fuel and feedstock, natural gas and the vailability to ethane
    
  • Integration of feedstocks with the refinery
    
  • Product values and pricing
    
  
  Petrochemcial Economics
  
  
  
  • Cost structure, variable and fixed cost build-up, the factors affecting price, cost plus, added value and alternative value basis for pricing, experience curves
    
  
  Olefins Technology
  
  
  
  • Process descriptions, flo- schemes and products
    
  • The refinery as a source of olefins, propanedehydrogenation, and metathesis as alternative sources of propylene
    
  • Butadiene extraction
    
  • Partial and full hydrogenation of mixed C4 stream
    
  • Benzene and higher aromatics from pyroluysis gasoline
    
  
  Olefin Markets
  
  
  
  • Ethylene, propylene, butadiene, raffinate-1 and other co-products
    
  • Relative growth rates
    
  • Historical and regional supply/demand trends
    
  • The problem of co-product supply
    
  
  Olefin Economics
  
  
  
  • The choice of feedstock, effect of feedstock on co-product yields, relative feedstock economics
    
  • Regional economics and the importance of lo- value feedstocks
    
  
  Olefin Pricing
  
  
  
  • Pricing strategy, margins, price mechanisms, price formulae, price ratios, external references with particular reference to ethylene and propylene pricing
    
  
  Aromatics from Olefin Production
  
  
  
  • Aromatics from pyrolysis gasoline
    
  • Extraction and dealkylation
    
  • Alternative sources of aromatics
    
  • Benzene and higher aromatics markets
    
  • Valuation of aromatics
    
  
  Markets and Economics of Olefin Derivatives
  
  
  
  • Production and markets for ethylene, propylene, butadiene and benzenederivatives
    
  • Production costs and dependence on ethylene costs
    
  • The importance of integration
    
  
  Olefin and Derivatives Trade
  
  
  
  • The deep sea trade in olefins
    
  • Olefin derivative trade
    
  
  Test Case
  
  
  
  • There will be an interactive case study on olefin marketing