On-going evaluation of scenarios, to find the balance between investments, market requirements and composition and availability of raw materials.

The Challenge
The major global oil producer and refiner required a tool for allowing an on-going evaluation of various scenarios, to allow them to find the correct balance between investments, market requirements and composition and availability of raw materials.

The Powersim Approach
Powersim helped the company develop a simulation model to deal with these issues. The model gives them a better overview of their entire value chain, as well as the opportunity to run scenarios to compare various market and production alternatives.

The Simulation
The modelling team designed the logical parts of the system as “Components” (ref. Powersim Studio documentation) – a structure that can be dragged-and-dropped into a simulation project. Each component contains a generic model containing the dynamics and equations for describing a specific part of the production line or technology for dealing with the gas.

The Powersim Solution
Powersim software allowed the company to save time and money by focusing on the right opportunities, not all opportunities. The modelling team can now efficiently test, validate and define operational scenarios for various structures and compare the production and financial key parameters of the various scenarios. Examples of components are different market components where the gas is distributed to gasoline stations in one case, while it is distributed to private households in another.

The Lesson Learnt
It is now possible to run parallel scenarios, where each scenario use a different marketing component, and then compare them to analyse short and long-term benefits and drawbacks of the various solutions.