Refining Report Complexity index indicates refinery capability, value

Daniel Johnston Daniel Johnston & Co. Inc. Dallas Refinery size usually is measured in terms of distillation capacity. Relative size, however, can be measured using refinery complexity-a concept developed by W.L. Nelson in the 1960s. A review of complexity calculations, and an explanation of how indices have changed, provide a simple means of determining the complexity of single refineries or refining regions. The impact of complexity on product slate also will be examined. The Nelson index Nelson developed the complexity index to quantify the relative cost of components that make up a refinery. It is a pure cost index that provides a relative measure of the construction costs of a...

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