Upcoming 2024 Fuels & Lube Study Improvements Added for Clients to Gain Deeper Insight

Solomon continues to invest heavily in the Worldwide Fuels and Lube Refinery Performance Analysis (Fuels & Lube Study) in preparation for the 2024 study, building on substantial improvements delivered in 2022.

Sustainability continues to be an important theme as the industry looks at how to navigate the energy transition. Capacity rationalization is expected, as the demand for transport fuels declines and governments continue to legislate to drive this trend. Study developments continue to address sustainable energy use and carbon emissions as well as other environmental considerations, such as sustainable water use. New offerings will be added to the Fuels & Lube Study portfolio to allow companies to compare their corporate performance with peers.

As the industry transitions from one of the highest margin environments in refining history, the continued importance of operational expense discipline while driving high reliability remains imperative.  Understanding refinery performance compared to peers remains the highest priority for our clients. There is no better time for refiners to gain insight into their global and regional competitive positioning, to adapt strategic plans, and drive performance improvement programs. The world’s best refineries are those that have this capability ingrained in their corporate culture.

Sustainability benchmarking will be expanded in the 2024 Fuels & Lube Study with ongoing efforts to improve benchmarking methodologies for water usage, to measure the impact of Emissions Trading Systems (ETS), and to understand the impact of biofuels and renewable fuels processing on overall refinery margins. Key sustainability metrics include:

• Energy Intensity Index™ (EII®) – remains the industry standard for overall energy consumption, recent improvements ensure its continued relevance.
• Energy Sustainability Index (ESI) – accounts for source of power and steam considering the actual efficiency from renewable and other sources. Plans for further enhancement in 2024 include refinements to handling of hydrogen imports and reporting heat rate by fuel type.
• Carbon Emissions Index (CEI) – Solomon plans to enhance this primary GHG emissions metric to account for hydrogen imports in 2024; this follows a significant CEI revamp in 2020.
• Emissions Trading Systems (ETS) costs– Added in 2022, in the 2024 analysis the cost will be more closely aligned with standard OpEx peers.
• As Water Use and its regulation continues to be a focus in many regions, Solomon has included this as a core part of the study sustainability scope. Enhanced normalization will be applied in 2024 to further distill meaningful insights.
  
  

Recognizing the growing importance of renewable fuels, Solomon introduced factors and standards for renewable fuels processing units in 2022. Looking ahead to 2024, the scope of analysis is set to include a broader range of units as well as standalone renewable processing facilities, with tailored analysis to client-specific interests and needs. In 2024, companies can submit stand-alone Renewable Fuels refineries for benchmarking alongside their traditional crude based refineries.

Base oil production is an integral part of many fuels’ refinery operations, providing upgrade value to heavy stock material such as vacuum gas oils and residues. Secondly, it acts as a standalone business that supplies value and products to a specialty market, outside the traditional transportation fuels. 

The Worldwide Paraffinic Lube Refinery Performance Analysis (Lube Study) includes all Fuels Study improvements and adds specific insights for base oil producers.

The Lube study provides a deep technical analysis of lube production by directly comparing participants’ operations with those of best-in-class technology peers (hydroprocessing, solvent, and catalytic dewaxing).   

The Lube study also evaluates pros and cons of contemporary catalytic plants vs conventional solvent plants, focusing on profitability and operational cost. It provides participants with a market view of what products are worth making, distinguishing between products such as base oils and specialty products, and light and heavy viscosity grades.

By participating in both Fuels and Lube Study, participants can review the entire value chain of their operations. 

Solomon actively explores additional study options to offer specialized reporting on various refining aspects, demonstrating a commitment to comprehensive industry insight. Special topics reporting will include hydrogen optimization, refinery staff demographics, and compliance with renewable fuel obligation.

Study results were delivered earlier than ever before in 2022. Beyond merely highlighting performance gaps, the results presentations have evolved to delve into the underlying causes of these gaps, offering invaluable insights into the strategies employed by the “best in industry” to address them.

Solomon continues to build on these improvements and remains committed to significantly increasing the level of insights and value that participants derive from the study. The investment program for the 2024 Fuels Study is aligned with this objective and continues the trend of recent years.

Building upon the developments made in 2022, Solomon is offering even more tailored analysis through the introduction of a "Custom Corporate Presentation" format.   This will allow for highly customized insights that cater to the specific needs and preferences of individual companies.

With escalating global competition in the refining sector, Solomon has transitioned to embracing a broader worldwide perspective in evaluating performance gaps against industry competitors. This includes a refined approach to comparing non-energy operating expenses and energy efficiency against industry leaders, enabling participants to gain deeper insights into areas where improvements can be made.

In line with its commitment to continuous improvement, Solomon has been focused on improving the data submission and data verification process. Through a secure online portal, clients will have visibility into each step of the process and additional communication tools to quickly answer questions and collaborate with the Solomon team.  

Moreover, stringent measures are in place to maintain the confidentiality of study data, with multiple layers of cybersecurity protections and safeguards in place to protect sensitive information.

Solomon appreciates your interest and continued participation in the upcoming Fuels & Lube Study. Contact us to learn more. 

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HSB Solomon Associates LLC (Solomon) provides data-driven, strategic insight across the energy industry, leading to greater efficiency, reliability, and profitability. We draw upon the world’s most extensive, historical, and proprietary databases of operational performance, and combine that knowledge with a library of industry best practices and industry experts that understand your business. This combination allows us to identify operational gaps and deliver insight and solutions to close those gaps and improve results, connecting data to business strategy and sustained performance excellence. Solomon is part of the HSB family of companies and serves clients in nearly 80 countries, with global headquarters in Dallas and regional offices in Houston, London, Manama, and Singapore.