Refinery Economic evaluation

‫تقييم اقتصاديات انمصفاة‬

Refinery Economic evaluation consists of two major objectives:

● Estimation of the amount of producible oil and gas.

● Estimation of the economic value of the predicted future production.

These are not separate functions: some aspects of the first objective are necessary
to accomplish the second objective, and in that respect, the two functions meld at
the boundary so that one influences the other.

Classification of Petroleum Products

The petroleum products that may be subject to evaluation can be grouped as:

● crude oil

● natural gas

● associated products

Crude oil is a liquid composite of many hydrocarbon compounds that, depending

on the composition, has differing properties such as oil gravity, viscosity, and
pourpoint which, at least in part, define the quality of the oil for potential end use
and also influence the methods that would be used to develop and produce the oil.
Crude oil that has a high API gravity (‫ )مقياس انكثافة اننىعية حسب معهذ اننفط األمريكي‬and
low viscosity is generally easier to produce than low-gravity, high-viscosity oil that
may require stimulation ‫تحفيز‬to maintain production rates.
Cash-flow diagram ‫مخطط انتذفق اننقذي‬
A cash-flow diagram is a financial tool used to represent the cashflows associated
with a security, "project", or business.

As per the graphics, cash flow diagrams are widely used in structuring and
analyzing securities, particularly swaps. ‫وهى كما ممثم في انمخطط ادناه‬

Table of resources and reserves ‫جذول انمىارد واالحتياطيات‬

Inflation is a sustained increase in the general price level of goods and services in
an economy over a period of time.

The net present value (NPV) ‫ طريقة صافي انقيمة انحانية‬method is an important
criterion for project appraisal. Profitability of a project is evaluated by this method.
It is also called as present value method. Net present value is calculated by using
an appropriate rate of interest which is the capital cost of a firm.