Simulation Supports Strategic Downstream Oil Movement Planning
Together with our management consulting partner in the Downstream Oil and Gas Industry, Talumis supported a strategic multi period oil movement masterplan refinery study.
To test future demand and supply scenarios and identify gaps and opportunities in a local downstream oil market a sophisticated FloWorks simulation model of the downstream facilities was set-up.
The model comprised of the refinery storage tanks (>100), shipping facilities for product and feedstocks as well as main product road gantry facilities.
In addition a multi-product pipeline connection to a downstream of the refinery located supply terminal, including storage facilities (>20 tanks) and road gantry had to be evaluated.
After establishing a robust combined base case model that reflects the current operation a variety of future scenarios were reviewed.
The simulation based analysis revealed that the refinery will phase significant logistical constrains based on the foreseen supply and demand changes in the region.
The impact of ongoing and committed mitigation projects was assed and additional proposals for improvement, e.g. via tank swaps or investment in new storage or movement equipment identified.
The robustness of the identified proposals was tested against sensitivities.
Overall, the on FloWorks based strategic evaluation approach of Downstream Oil Movement with supporting economical evaluation allowed to design a robust multiyear improvement and investment plan that will supports the refinery strategy and main business drivers effectively.
We are proud to see that in the highly demanding management consulting business FloWorks’s proven approach in model building that combines discrete event and continuous processes flow allows fast, flexible model building and scenario evaluation that deliver insights and value to our global customer base.