Refiners can boost profits using the conversion index

05/08/2000
Norman E. DuncanNED & Associates Inc. Houston Click here to enlarge imageRefiners can use conversion indices (CIs) to determine if margins will support conversion-unit projects. When the CI is higher in one refinery than another, the margin is generally also higher. Thus, CI allows for a rough comparison of relative refining margins among different refineries. Click here to enlarge imageCI is the sum of the conversion capacities of a refinery divided by its crude capacity. Thus, it is the sum of catalytic cracking, hydrocracking, and coking capacities divided by crude capacity. Click here to enlarge imageFor any refinery, the CI can be quickly calculated using OGJ's annual refini...
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