Major refinery projects are complex endeavors that span many years and require the integration of many activities and groups. A simple model could not capture all these facets. The Relative Cost Factor model does not demand more specialized or detailed knowledge than would be readily available during the concept formulation phase. It is accurate enough to permit comparison of many refinery projects. Relationships are provided for only the major refining processes, but equations for other processes may be easily derived. Any project to be evaluated by the techniques developed must be consistent with the basic assumptions under which these relationships were developed. Development and pricing policies must be similar to those of the 1970s and early 1980s.
This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.