Glossary

A program of reports produced each quarter for the United States, Western Europe and Asia (Japan and South Korea) containing current and historical analysis of the profitability of oil and petrochemical operations. The reports include a cost of production, margin and profitability analysis of a wide range of refined oil products, petrochemicals, polymers and fuels as well as a commentary on the key issues affecting the industry.

Raw Materials are the feedstocks (plus any catalyst makeup) that are required to feed the process. The mass flow of each raw material is quoted per ton (alternatively pound or gallon) of production of the main product

Refined products is the term given to the output streams produced by a refinery. These products differ from petrochemical products in that they generally consist of a mixture of chemicals, whose value is based on their combined physical properties rather than their chemistry. Refined products are used as energy sources across all areas of economic activity, with the petrochemical industry taking only x% of total demand.

Refinery propylene refers to a mixture of propylene and propane (typically 75 percent propylene) that is produced by refineries for sale to petrochemical producers or for use as a feedstock to make gasoline components. Refinery propylene can be upgraded to propylene by distillation in a propylene splitter. Refinery propylene can also be used directly as a feedstock for production of cumene.

Reformate is the term given to the side stream produced by refinery reformers. These units are designed to produce higher value gasoline components from highly aromatic naphtha streams.

Reformate is produced from naphtha in continuous catalytic reformers and semi-regenerative reformers and is a mixture of aromatic and aliphatic hydrocarbons. Its composition can be controlled within limits by the aromatics producer. It is the major source of aromatics in most of the world.

The Return on Replacement Capital is calculated by comparing the annualised revenue (cash margin less depreciation) with the total capital cost of the plant (ISBL + OSBL). This calculation is termed on replacement capital as it uses the current estimated capital cost as the divisor. Actual plants in a region will have been built at an earlier date, at potentially a lower capital cost.

Royalty costs are the costs per ton agreed to cover any license granted to the plant owner by the technology provider. It is also common for this royalty charge to be capitalised and included in the ISBL capital cost.