Wednesday, March 1, 2017

Oil Blending World Blog – March 2017

1. Octane and RVP Giveaway Survey
This could cost you millions of dollars a year. Do you know what your competition is doing? Are in the upper quartile, or dead last? We are planning to do a “blind” survey shortly, where the participants are not identified, but given a coded number like a “Swiss bank account”…well, we’re joking…we are not laundering octanes… What do you get if you participate in the survey? Your giveaway “status” compared with the other US refineries.
We can also offer you a study where beside the survey we present a detailed report regarding your giveaway condition helping to improve it.
If you wish to participate or to have more info, please send us an email at

2. RIN “Problems”
If you are blowing “mucho dollars” to fill governments (or speculators’) pockets, before wringing your hands, you may wish to read our Oil & Gas Journal paper  where we give you six ways to mitigate (or slow, not stop) the bleeding.
You can get a copy at:

3. Blending Advice

When 10ppm Sulfur IS NOT 10 ppm S
US Tier 3 rules and specs are in force as of January 1, 2017, but..10ppm in US is NOT the same  as 10ppm elsewhere in the world. In US, 10ppm is an ANNUAL AVERAGE, with caps of up to  80ppm; in EU and elsewhere, 10ppm is an absolute per gallon/liter spec that cannot be exceeded.

Blending Ethanol:   
why not take advantage of Ethanol’s cheap octane boost? Are you afraid of blowing your RVP, T50 or VOC specs?  What if you can decrease the reformer severity-worth millions- if you do ethanol blend, is it still a bad idea?
RVP Rollover:
      we are approaching to the transition season, don’t wait till it’s too late, start doing something now.

4. Solving Global 0.5% S Bunker Conundrum

   All you hear these days in the bunker business, is the IMO 2020 Global Sulfur Cap and      crude price volatility. What it the current state of affairs?            

   Hardly anybody is doing anything about it, publicity

-      Refiners are sensitive to crude volatility, and so far resisting "tooth-and-nail" about changing their crude diet or reconfiguring their processes to make 0.5% S

-      Some vessel owners are making inquires regarding scrubbers prices and delivery times

-      Blenders are studying reformulation of recipes assuming certain belndstock properties:
                      - Blended fuel compatibility issue on the rise, and will get worse

-      LNG is dead for another 10 to 20 years.

-    Everybody assumes prices will go up, no matter what

You have 5 alternatives to the "run-of-the-mill" IFO 380 with 3.5% S:

1.  Use scrubbers; this will cost you about $ 5 millions to install on each ship, but will pay for itself in a matter of months

2.  Use Marine Gasoil; this will cost you an additional $200/MT over IFO380, and you can ask Germany's Ms. Merkel to bail you out before applying to a bankruptcy court

3.  You can use an ECA fuel ( a "trans-gender" fuel, not bunker, not gasoil) at a premium of about $100/MT over IFO380

4. You can use specially formulated "hybrid" 0.5% S IFO380 by using desulfurized residuals or very low sulfur crudes to make the low Sulfur residue to prepare IFO380, at a premium of about $100/MT over IFO380

5.  You can ignore IMO and continue burning cheap IFO380 w 3.5% S on the open seas. The risk of IMO "Sulfur Police" to catch you: the probability of that outside EU and USA: zero.


   We have prepared a SPECIAL BUNKER FUEL BLENDING COURSE in Houston for June 5 to 7, 2017. We extended the course by one additional day to cover special IMO 0.5% S formulations, and data base of suitable blend components. This is in addition to the standard curriculum covering other aspects of bunker blending. Take a look below to register to the course.

5. Blending Courses

We provide both customized in-house blending courses upon request and public blending courses.

                             Learn how to $-Make Money with Blending!!!!!!!!!!

      1.      Gasoline & Diesel Blending Course.
              Three days course: March 21 to 23.
              Where: Kingdom of Bahrain
                      Click here to register 

      2.    Gasoline & Diesel Blending Course for traders.
             Three days course: May 15 to 17.
             Where: Rotterdam, The Netherlands
                     Click here to register

      3.    Gasoline & Diesel Blending Course for traders.
             Three days course: May 2 to 4.
             Where: Malta

                     Click here to register  

      4.      Bunker Fuel Blending Course.
             Two days course: March 26 and 27.
             Where: Fujairah, UAE
                    Click here to Register

           5.     Bunker Fuel Blending Course.
             Two days course: May 11 to 12.
             Where: Rotterdam, The Netherlands
                     Click here to register

          6.     Bunker Fuel Blending Course.
             Two days course: May 5 to 7.
             Where: Houston,TX
                     Click here to register

   Refinery Automation Institute organizes also one day Ethanol Blending Course.
       Ethanol specs, properties, octane & rvp boost calculations, RINs and Ethanol
                       Where: New York City.
                       Register at 

6. Blend Optimizer Software

Are you ready to $- Make Money with Blending? The $-Smart Blend Optimizer is a powerful tool, with a friendly interface that allows us to predict in the shortest amount of time if you can have profit with the Blend Components, the Blend Inventory and the Specifications you have. All of them (Blend Properties, inventory, price) are taken into account during the Optimization.

See more info about the software:

Refinery Automation Institute provides also customized training sessions to learn how to use the Smart Blend Optimizer.

               Please, contact for more information

Refinery Automation Institute, LLC
6 Leslie Ct.
Morristown, NJ, 07960

tel. 973-644-2270
Follow us on Linkedin


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