| Task and Mark distribution:
Assume that you are a Project Consultant who has been requested to lead a feasibility study on the siting/construction of a petroleum refinery. You are to choose one of the following three locations for the project and justify your choice as each location has different economic and operational implications.
Location one: A farming community within one kilometre away from the ocean in Scotland
v without road network,
v without potable water
v without demineralised water for steam generation
v 50km offshore is a cluster of oil and gas companies that produce an average of 230,000 bbl/d with 37 API quality
Location two: A farming community within 3 kilometres away from the ocean in Nigeria
v With an existing road network,
v With an oil jetty
v With potable water and demineralised water for steam generation
v Oil produced in this region has 17 – 42 API quality and average 2.3 mmb/d
Location three: A farming community within 4 kilometres away from the ocean in the Gulf of Mexico area
v 45% of total U.S. petroleum refining capacity is located along the Gulf coast with existing transport pipeline and storage facilities but there will be need for a major network of gathering lines or a new construction of a major pipeline from processing facilities to the main transport lines.
v Without demineralised water for steam generation
v with a desalinated water plant ready to provide portable water for the refinery at a cost
v Oil produced in this region has 20 – 35 API quality and average 1.5 mmb/d
For all three locations, an 85km pipeline must go through the community to transport 40% of refined products, for local markets, to a major tank farm site for storing and further transportation to local consumers.
Coursework expectations
- Examine and discuss the key business considerations for the choice of the location.
- Explain the configuration of the refinery – technologies/ complexity of your refinery, the type (s) of crude to be refined and the product slate. Briefly analyse the economics – costs and profitability of the project.
- Explain all transportation options available to you and justify your choice of transportation method(s).
- Highlight and discuss the marketing strategies common to oil refineries and justify your choice of strategies.
- Propose strategic options for the refinery management in order to mitigate any negative impacts from the project.
- Put together a report that demonstrates your research and understanding of the problem.
- Guidance for writing a good report
A good report will among other relevant things include the following:
v Refinery type and products
v Crude oil types to be refined and its implications on operating costs and profitability
v Location and justification for choice of place
v Transportation considerations
v Commercial considerations – Marketing strategies to be used, profitability, etc.
v Potential environmental and socio-economic issues
v Proposed strategies to manage community concerns in order to render the project successful
v Use industry figure, graphs, tables, etc. on refinery yield, margins, etc.
v Reference at least 10 journal articles, 5 industry reports/ documents and 5 other relevant reports
- Structure:
Your report must have a concise title that reflects its aim and an executive summary to summarise the key points of your report. It must be divided into 3 main sections; introduction, main body to review and discuss issues and conclusion and recommendation.
- Marking Criteria:
Suitable title 2
Executive summary 5
Introduction 10
Main: 63;
To be split across critical review and inclusion of, and well discussed relevant themes and evidence from industry and or own analysis – tables, graphs, etc.:
Location 15
Configuration 15
Transportation methods 20
Marketing 8
Environmental, etc. strategy 5
Conclusion 10
Inclusion and good use of relevant references,
Report structure; grammar, layout of pages, etc. 10
- Additional Guidance
- This is an individual assignment.
- It should be presented as a formal report.
- In-text citations and reference list should contain a balanced mix of journal articles, textbooks, industry/ organisational documents, etc.
- All research materials should be cited in the text and referenced in accordance with CU Harvard Referencing style.
- The report must be submitted via Turnitin by using the Turnitin link provided on Moodle.
Resit/ Reassessment
If you get less than 40% in assignment 1 (the feasibility report) or assignment 2 (the infographic) you will need to resit in the next semester.
For the re-assessment of 2039EXQ coursework 1 and coursework 2, you should improve your initial attempt to a satisfactory level using the feedback provided (on CU Moodle). Your resit attempt should address all feedback comments which may include conducting further analysis, incorporating additional literature, strengthening your academic argument and improving the format and/or structure of your work.
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