Smart Petrochemical Products to Replace Oil Derivatives in the Future

Sakhir – University of Bahrain (Ali Al Sabbaq)

 

February 8, 2023

 

A scientific thesis at the University of Bahrain stressed the importance of oil refineries and petrochemical facilities integration to increase their profitability and sustain their industrial activities, especially in light of increasing trend towards energy alternatives and reducing dependence on fossil fuels.

 

The thesis, submitted by a student in the Engineering Management PhD program at the University of Bahrain Khalid Qaeed Al-Anzi, called for practical steps to be taken to transform oil refineries in the region into petrochemical facilities in the near future. Al-Anzi pointed out that scientific studies indicate that smart petrochemical products will be the basic products, while oil derivatives such as gasoline and diesel will be secondary products in the future.

 

The study, which relied on the development of scientific models, was titled, “Integration of Oil Refineries and Petrochemical Factories in the Middle East: An Improvement Study Using Multi-Objective Nonlinear Programming.”

 

Al-Enezi explained that the study examined the refinery and petrochemical production lines’ integration, based on three scientific scenarios to come up with the results in each of them, in terms of profitability, production, revenue, inventory costs, and unit operation.

 

He pointed out that this idea resulted from fluctuations in oil prices, amid the changes imposed by the Fourth Industrial Revolution, which relies on digitization and the use of clean and renewable energy sources.

 

The study, which sought to provide flexible solutions to decision-makers in the oil and gas sector to deal with declines in global demand for oil, found that integration refinery and petrochemical facilities increased profitability by 4% in 2021, and will increase by 29% in 2030, and by 38% in 2050.

 

The thesis examination panel consisted of Associate Professor at the Department of Chemical Engineering, University of Bahrain, Dr. Mohammad Ali bin Shams, as the main supervisor, former Professor of Business Administration and Research at the College of Business Administration, University of Bahrain, Dr. Hatem bin Mahmoud Al-Masry, as an associate supervisor, Vice President of the University of Bahrain for Academic Programs and Postgraduate Studies, Associate Professor of Electrical Engineering, Dr. Mohammad Reda Qader, as an internal examiner, and faculty member at the Neoma Business School, Republic of France, Professor Fouad bin Abdulaziz, as an external examiner.

 

The study looked at the future of some petrochemical materials. It concluded that the propylene preference model is relatively more feasible than ethylene production. In the researcher’s opinion, this calls on decision makers to give priority to the propylene product in petrochemical facilities.

 

The researcher indicated that he used the historical prices of oil and petrochemical materials and their market demand to predict prices according to accurate statistical and mathematical equations. He stressed that facts which resulted from statistical operations indicate the importance of integration of oil and petrochemical facilities.

 

The researcher added, “Recent studies stress the importance of conversion of petrochemical products into innovative products, and their widespread use, such as smart plastic, which is weather-resistant. He noted “One of the most important industry leaders in the region indicated that three-quarters of the barrel of oil will be sold as a petrochemical product in the future.”