Description

The difference between the actual results of the chemical product and the stated result of the chemical product is called a giveaway. This loss triggers marginal depletion of fuel, distillate, and heavy oil prices. These giveaways are converted into the income statement of a refinery by different types of opportunity costs. The blend quality is a giveaway if the product quality is greater than the blend spec. However, when the blend quality is less than the blend spec, it is considered violated. This topic discusses the concept of quality giveaway and violation, cost estimation of RON and RVP giveaways, analysis of refinery giveaway data, butane blending for RVP, losing tangible benefits by the quality giveaway, estimation of quality giveaway cost, the concept of octane giveaway, normal distribution of RON and RVP giveaway, estimation of yearly loss of benefits from giveaway, etc.