CW1: Refinery Feasibility Study

 

 

Faculty of Engineering Environment and Computing

2039EXQ Module Title Downstream Oil and Gas Business

 

Assignment Brief 2019/20

 

Module Title Downstream Petroleum Business Ind/Group Cohort (Sept/Jan/May) Module Code 2039EXQ

 

Coursework Title (e.g. CWK1)

CW1: Refinery Feasibility Study

Hand out date: 19 September 2019

 

Lecturer: Elijah Acquah-Andoh

 

Due date: 18th Nov 2019
Estimated Time (hrs): 48

 

Word Limit*: 2,000

 

 

 

Coursework type: Report 50% of Module Mark

 

Submission arrangement online via CU Moodle: Submission via Turnitin on Moodle

File types and method of recording: MS Word

Mark and Feedback date: 3 Dec 2019

Mark and Feedback method: Written Feedback via Gradebook on Moodle

 

Module Learning Outcomes Assessed:

 

1.      Analyse the major downstream activities, from refining through distribution and marketing

 

2.      Appraise the downstream segment of the petroleum value chain

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

 

  1. Examine and discuss the key business considerations for the choice of the location.

 

  1. 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.

 

  1. Explain all transportation options available to you and justify your choice of transportation method(s).

 

  1. Highlight and discuss the marketing strategies common to oil refineries and justify your choice of strategies.

 

  1. Propose strategic options for the refinery management in order to mitigate any negative impacts from the project.

 

 

  1. Put together a report that demonstrates your research and understanding of the problem.

 

 

  1. 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

 

 

  1. 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.

 

  1. 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

 

 

  1. 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.

 

Notes:

1.      You are expected to use the CUHarvard referencing format. For support and advice on how this students can contact Centre for Academic Writing (CAW).

2.      Please notify your registry course support team and module leader for disability support.

3.      Any student requiring an extension or deferral should follow the university process as outlined here.

4.      The University cannot take responsibility for any coursework lost or corrupted on disks, laptops or personal computer. Students should therefore regularly back-up any work and are advised to save it on the University system.

5.      If there are technical or performance issues that prevent students submitting coursework through the online coursework submission system on the day of a coursework deadline, an appropriate extension to the coursework submission deadline will be agreed. This extension will normally be 24 hours or the next working day if the deadline falls on a Friday or over the weekend period. This will be communicated via email and as a CUMoodle announcement.

6.      Assignments that are more than 10% over the word limit will result in a deduction of 10% of the mark i.e. a mark of 60% will lead to a reduction of 6% to 54%. The word limit includes quotations, but excludes the bibliography, reference list and tables.

 

Mark allocation guidelines to students

0-39 40-49 50-59 60-69 70+ 80+
Work mainly incomplete and /or weaknesses in most areas Most elements completed; weaknesses outweigh strengths Most elements are strong, minor weaknesses Strengths in all elements Most work exceeds the standard expected All work substantially exceeds the standard expected

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marking Rubric

GRADE

 

ANSWER RELEVANCE   ARGUMENT & COHERENCE   EVIDENCE   SUMMARY  
First

 

≥70

Innovative response, answers the question fully, addressing the learning objectives of the assessment task.  Evidence of critical analysis, synthesis and evaluation.

 

  A clear, consistent in-depth critical and evaluative argument, displaying the ability to develop original ideas from a range of sources.  Engagement with theoretical and conceptual analysis.

 

  Wide range of appropriately supporting evidence provided, going beyond the recommended texts.  Correctly referenced.   An outstanding, well-structured and appropriately referenced answer, demonstrating a high degree of understanding and critical analytic skills.  
Upper Second

 

60-69

 

 

 

A very good attempt to address the objectives of the assessment task with an emphasis on those elements requiring critical review.   A generally clear line of critical and evaluative argument is presented.  Relationships between statements and sections are easy to follow, and there is a sound, coherent structure.   A very good range of relevant sources is used in a largely consistent way as supporting evidence.  There is use of some sources beyond recommended texts.  Correctly referenced in the main.   The answer demonstrates a very good understanding of theories, concepts and issues, with evidence of reading beyond the recommended minimum.  Well organised and clearly written.  
Lower Second

 

50-59

 

 

Competently addresses objectives, but may contain errors or omissions and critical discussion of issues may be superficial or limited in places.

 

 

  Some critical discussion, but the argument is not always convincing, and the work is descriptive in places, with over-reliance on the work of others.

 

  A range of relevant sources is used, but the critical evaluation aspect is not fully presented.  There is limited use of sources beyond the standard recommended materials.  Referencing is not always correctly presented.

 

  The answer demonstrates a good understanding of some relevant        theories, concepts and issues, but there are some errors and irrelevant material included.  The structure lacks clarity.  
Third

 

40-49

 

 

 

Addresses most objectives of the assessment task, with some notable omissions.  The structure is unclear in parts, and there is limited analysis.   The work is descriptive with minimal critical discussion and limited theoretical engagement.   A limited range of relevant sources used without appropriate presentation as supporting or conflicting evidence coupled with very limited critical analysis. Referencing has some errors.   Some understanding is demonstrated but is incomplete, and there is evidence of limited research on the topic. Poor structure and presentation, with few and/or poorly presented references.  
Fail

 

<40

Some deviation from the objectives of the assessment task.  May not consistently address the assignment brief.  At the lower end fails to answer the question set or address the learning outcomes.  There is minimal evidence of analysis or evaluation.   Descriptive with no evidence of theoretical engagement, critical discussion or theoretical engagement.  At the lower end displays a minimal level of understanding.   Very limited use and application of relevant sources as supporting evidence.  At the lower end demonstrates a lack of real understanding.  Poor presentation of references.   Whilst some relevant material is present, the level of understanding is poor with limited evidence of wider reading. Poor structure and poor presentation, including referencing. At the lower end there is evidence of a lack of comprehension, resulting in an assignment that is well below the required standard.

 

 
Late submission

 

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