Refineries perform several functions and are essential for our nation's economy. They convert crude oil into gasoline, diesel, and several other fuel products. Like all machinery, they also require maintenance, and in that regard, a shutdown will usually happen periodically. Numerous reasons can cause a refinery to shut down, either unannounced or planned.
Fuel price hikes are the number one reason why refineries choose to shutdown during seasonal lulls in business. When gasoline prices increase, the costs to produce a gallon of fuel go up as well. The higher cost of production results in a drop in cash flow, forcing companies to seek ways to reduce costs. That often means shutting down their operations temporarily or shutting down their plants entirely. However, if refineries were to shut down suddenly, the shortage of fuel in the market would force gas prices to spike upward again. As a result, a refinery shutdown or outage can disrupt supply, making things more expensive for motorists.
Maintenance issues can also cause refinery shutdowns. There are a variety of maintenance tasks that must be performed regularly to keep wineries running smoothly. Many of these tasks can be costly and could lead to unexpected downtime. For example, suppose there is no regular inspection of equipment at the refinery. In that case, there is a chance that unforeseen problems might develop that lead to a complete shutdown of the facility. In addition, fuel turnarounds, which are necessary for reducing emissions and preventing oil leaks, are also essential maintenance tasks that cannot be ignored.
Although refineries are primarily involved in producing fuel for transportation, several conditions can affect the refinery and lead to fuel shortages. Storms, earthquakes, and heavy rain can all shut down refineries. In addition, wind, and snow can create massive disruptions in refineries that produce natural gas. A refinery shutdown would result in gasoline price spikes all over the country.
To keep refineries running smoothly, refinery maintenance tasks are required regularly. The latest inspection and maintenance equipment is essential to prevent unexpected problems from developing. However, most of these maintenance tasks are carried out manually, which adds additional costs to operations. On the other hand, specialized equipment, such as automated machinery and robotics, is needed to conduct routine operations more efficiently. This is why oil refinery turnaround activities are often carried out in the winter months when it is usually cold and windy. Wind chill makes it hard to handle heavy machinery used in oil refinery turnaround requiring several days of rest to recover.
The operation must be carefully monitored to make sure that everything goes according to plan. Most importantly, refinery turnaround operations must also be appropriately scheduled so that the benefits derived are not lost due to unplanned maintenance. Refinery maintenance and testing are part of the proper procedures that are to be followed to avoid any problems that may disrupt operations. Some of the everyday maintenance activities included in routine maintenance include corrosion testing, coating testing, lubrication testing, and hydro-pumping.
There will be a need for emergency diesel supply, water treatment and vapor control, and heat pump recovery during refinery shutdowns. To perform each task, the facility will have to hire contractors that are experienced in each service. When the facility is shut down, there will be a lack of qualified personnel to perform essential services. In addition to lacking personnel, shutdown can affect key components, causing further damage to the equipment, buildings, or infrastructure. Refinery turnaround and shutdown costs incurred due to weather can be very high if they continue long. Suppose there is a severe storm that destroys the pipes of vapor control, disrupting the production and distribution as well?
Since the liquids usually are stored in closed piping networks, the disruption can also affect the smooth transfer of products throughout plants. Refineryshutdown provides generally real-time visibility into the status of petroleum pipelines via remote access equipment used by plant operators. Without refinery turnaround management systems, interruptions caused by storms, snow and ice, and other environmental factors will cause real-time delays to remedy the situation. The loss of real-time visibility can affect cash flow, costing millions of dollars in extra transportation costs and added production.
