Oil Refinery Exercises

Peter L. Jackson

School of Operations Research and Industrial Engineering

Cornell University

Sponsored in part by the National Science Foundation Synthesis Coalition for Engineering Education.

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Title
Sample Screens
Abstract
Related Topics
Background Assumed
Duration of Exercise
Supplementary Lecture
Software Requirements
Copyright
Assessment
Files
Other Documents

Sample Screens

Oil Refinery Product Flows

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Abstract

The Oil Refinery Exercises are a detailed look at the economic operation of a medium sized oil refinery and a suggested analysis of an investment decision.

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Background Assumed

Net present value calculation. No chemical engineering background is assumed. There are extensive help notes explaining each portion of the spreadsheet model.

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Duration of Exercise

Each exercise is designed to be run in a 2 hour microcomputer laboratory period. The spreadsheet model of the refinery could be the basis of extended project work.

Extended project suggestions:
Formulate the optimization problem as a linear program.
Prepare a report fully analyzing the proposed investment in the isomerization process. This would require forecasting crude oil prices for twenty years into the future.

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Supplementary Lecture

Lecture notes are available in non-digital form. Request from P. Jackson at pj16@cornell.edu. Introductory lecture takes 30-45 minutes: orients students to product flows and key decision variables.

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Software Requirements

Microsoft Windows 3.1
Toolbook Runtime v.1.5
Microsoft Excel v2.1d+
Microsoft Word 2.0

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Copyright

Public domain. Modify as you wish.

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Assessment

Student reviews have been negative. The model of the oil refinery is overwhelming. A two hour laboratory exercise is not sufficient to really understand it. The students complain that they played the game using trial and error and didn't really know what they were doing. The other exercises were tedious and did not relate well to the lecture material of the course (Engineering Economics).

The extended projects based on the spreadsheet model have been more successful. In this format the students have the time to understand what the model is about and to analyze it more thoroughly.

Future Enhancements:
A linear programming model of the oil refinery has been developed and implemented in AMPL. It has not yet been tested.

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Files

To download the zip file, click here: oilref.zip (187920 bytes). Contents:
oilgame.doc: Handout for students to fill in answers to exercise on oil refinery operation. Use in conjuntion with refin4.xls. Students compete for high score. (Microsoft Word for Windows 2.0 format)
refin4.xls: Spreadsheet model of oil refinery with help notes and control panel for game play. (Microsoft Excel v. 2.1d)
senshand.doc: Handout for students to fill in answers to exercise on sensitivity analysis. Use in conjunction with sensbill.tbk and refin5.xls (Microsoft Word for Windows 2.0 format)
sensbill.tbk: Tutorial exercise in sensitivity analysis of oil refinery operation. Use in conjunction with senshand.doc and refin5.xls. (Asymmetrix Toolbook v. 1.5)
isom.doc: Handout for students to fill in answers to exercise on isomeriation investment. Use in conjunction with refin5.xls. (Microsoft Word for Windows 2.0 format)
lpquiz.tbk: Tutorial exercise explaining how to build a linear programming model of the oil refinery. Students answer questions in toolbook and save answers for grading. Alternatively, a hard copy version of questions is available upon request (pj16@cornell.edu) Use in conjunction with refin4.xls. (Asymmetrix Toolbook v. 1.5)
oilref.txt: This note.

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