Strategic Business Planning

Strategic Business Planning

Global energy markets are constantly adjusting to meet demand while regulatory and societal trends continually steer the industry toward cleaner production methods and product specifications. Comprised of over 1,500 career-long energy industry specialists, Becht is passionate about helping clients achieve new heights in throughput and versatility while being vigilant stewards of resources and the environment.

To assist clients agilely address these challenges, Becht leverages world class Process Technology, Strategy, and Reliability SMEs, who bring lessons learned from the owner / operator experience, and utilizes a proven sitewide analysis methodology.  This methodology employs a holistic evaluation approach encompassing economic and technical feasibility of forward-looking projects with a practical real-world perspective, no matter how large or small.  Becht’s mantras of “get it right the first time” and “go slow to go fast” are applied in combination with fit-for-purpose tools and the right skill sets to collaboratively attain capital efficiency and meet business objectives of our clients.  Accelerated value capture and decision making, along with improved return on investment, are the metrics that demonstrate the benefit of involving Becht in your strategic business planning.

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Strategic Consulting

Strategic consulting is a holistic analysis of greenfield and brownfield capital projects, including inside process battery limits, outside process battery limits, energy systems, and logistics.  The approach uses industry-recognized subject matter experts (SMEs) in the Becht Process Technology area along with proven methodologies.  Becht is technology agnostic, thereby allowing for an independent and fair analysis from conceptualization through project design definition.

Often, analysis is done “in part” and not “in whole”, resulting in less-than-optimum scope definition, unoptimized base line, and eventual capital cost escalation.  Historically, linear programs (LP) are used for these evaluations and, by themselves, do not have the granularity to make the best technical and economic evaluation.  Becht brings an independent viewpoint and nonlinear process tools to bear with LPs to accelerate and enhance the detailed analysis from the start. Early identification and evaluation of options in a robust environment provides confidence in stage gate approval for engineering funding, the asset achieving the desired operation, and avoidance of regret capital. Utilizing Becht’s approach can reduce the total project schedule for a major capital project by 6 months and increase IRR by at least 1%.

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Asset Optimization / Margin Improvement

Continuous improvement is not just a phrase, it is a requirement to remain competitive in a rapidly changing market.  A margin improvement program utilizes Becht Best Practice methodology to identify and analyze opportunities within a whole site context. The collaboration of SMEs with client internal expertise captures the fundamental chemistry, operational knowledge, and Becht independence.  Becht’s owner / operator perspective approach is to understand the site strategy and constraints to identify potential opportunities.  These opportunities are prioritized and evaluated utilizing fit-for-purpose tools and industry expertise to quantify the value, assess the risks, and prioritize tangible actions to capture that value.

The value improvements can range between $0.10 to $0.50/bbl crude / feed (i.e. 10 to 20 times return on investment of professional fees) with zero or low capital investment.  The intangible value of facilitating cross system discussions within a site can revitalize an organization’s continuous improvement efforts and achieve greater total profit moving forward.

Brownfield Revamp Feasibility

Legislative initiatives and mandates are the drivers that incentivize upgrades or revamps to a processing scheme.  Brownfield changes without the proper front-end evaluation from an optimized base can be complex and lead to costly changes, regret capital, and an asset that does not meet business objectives.  The Becht approach is agnostic on technology, bringing an independent analytical methodology at the start of the project. The ability to rigorously and rapidly model a facility to examine options provides inexpensive insurance to forward investment decisions.

The Becht approach does not stop at the completion of the study.  Becht has the staff to maintain discipline and focus to assist in stewarding the project collaboratively with clients to achieve successful commissioning and operation.  The realized benefits for engagement of Becht are typically 30 to 50 times professional fees, depending upon the complexity of the project.

Greenfield Configuration Conceptual Design

The axiom of “go slow to go fast” highlights the true value of engaging Becht, starting at the conceptual development all the way to the site overall design basis document.  Becht is a positively disruptive force, utilizing people, tools, and systems to challenge the “way we have always done it” methodology.  Becht has the tools to improve the granularity of the analytics and the staff to effectively and efficiently develop configurations and complete economic sensitivity analysis that meet the forward market demands.  Becht has no allegiance to technology providers or EPC firms, thereby allowing for evaluation and selection of what are truly the best options for a client.

Becht employs an owner / operator mentality to keep a project focused on the highest value options while guiding Greenfield or novel technology systems through the definition and development phases.  The evaluation of systems is inclusive of all aspects of the facility from processing, energy, and oil movements / logistics.  Becht collaborates with a client to turn a “blank sheet of paper” into an economically viable and technically feasible project that is suitable for investment stage-gate approval by investors and executive leadership team.  Becht’s value has been demonstrated by a reduction in total project schedule of 6 months and an increase in project IRR of at least 1%.

Configuring and Upgrading Linear Programs (LP)

Production planning is a key routine process executed typically utilizing a linear program (LP) to define the crude diet, operating strategy, and production slate necessary to maximize revenue within market demand requirements.  Becht LP specialists can provide advisory and construction expertise to the team to implement a new LP model or a major LP upgrade as a result of new assets addition or market shifts.  Becht is available to ensure existing scheduling tools are seamless integrated into any upgrades or builds. The value is attained by better decision making and value generation by the asset.

Linear Program Model Auditing and Maintenance

Linear program (LP) maintenance is an essential activity to ensure the maximum potential is achieved from the assets.  Becht works with the client in the development of procedures and practices to routinely validate the LP results, utilizing rigorous unit modeling and reconciled plant data.  The LP maintenance activity can review constraint targets within each process representation, thereby ensuring that the LP is not reaching a sub optimal solution from a spurious constraint.

Regular and periodic independent evaluation of the LP is a routine practice of pacesetter operators.  The Becht Team collaborates with the client to bring consistency between plant operation and forward predictability.  The audit often reveals improvements that can result in up to 0.10$/bbl crude in value identification and crude selection.

Supply Chain Consulting

Typical production planning is looking forward over multiple time horizons:  one year, six months, and quarterly for out-month crude purchases, along with in-month planning and scheduling decisions on known crude receipts and product delivery schedules.  Often, there is a disconnect between the refinery asset operation capabilities, crude nominations, and production logistics availability to meet the plans.  Becht SMEs have experience in analyzing the process and procedures, identifying opportunities to tighten up the decision-making information, and generating value flow on each step of the process.

Becht can provide advisory support as part of the supply chain decision making process, such as differentiating between forward locked contracts versus spot market sales, thereby defining the risk and reward of potential opportunities. The evaluation can provide input in forward month or seasonal reviews within the context of the local markets and extend into new potential markets.

Energy Optimization and Transformation Consulting

Energy is the lifeblood of local and global economies, and within the energy industry, energy is not only a source of revenue generation but also a substantial cost to the underlying business.  Energy production and consumption trends are in a significant state of flux.  Electrification of transportation fleets continues to shape future energy demands.  Novel drilling techniques have made inexpensive natural gas readily available.  Both political and investor pressure drives the industry to utilize and produce energy in a more environmentally friendly way.  The fossil fuel industry’s mindset to meet these challenges must now evolve from “should we?” to “how will we?”.

Becht utilizes knowledgeable subject matter experts, lessons learned from past experiences, along with proven techniques to assist clients with generating ideas, evaluating opportunities, and assessing novel or emerging technologies to meet energy use reduction and sustainability targets.  Becht is a trusted partner to provide a sensible and thought-provoking analysis that aligns a client’s mandates of effective stewardship of resources and the environment with shareholder value.

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Sitewide Energy Optimization

The discussion on energy optimization is shifting from simply improving efficiency towards an evolution of lower fossil fuel usage, consistent with climate change initiatives. Energy optimization is a complex issue that must consider shaft work delivery, power generation, steam usage, fuel consumption, heat integration, and water use / reuse.  The Becht team’s approach is holistic in nature by considering all energy generation and usage systems in conjunction with process requirements.

Becht completes site energy footprint gap assessments to identify opportunities to migrate from low cycle efficiency to higher cycle efficiency, all within a safe and reliable manner.  The holistic analysis accounts for energy and process credits and debits to generate net positive returns on investments as well as achieving site energy efficiency targets.

Greenhouse Gas Reduction and Sustainability Attainment

Greenhouse gas (GHG) emission reduction mandates are now a part of corporate discussions to lower the overall carbon footprint and mitigate environmental impact.  The core challenge is to achieve sustainability requirements while ensuring safe, reliable, and profitable operation. Becht can analyze a site with a client to reveal not only the value to lower GHG emissions but also the investment required to meet sustainability elements.  For some entities, co-processing of bio materials or use of green hydrogen and feedstocks may be sufficient, whereas other entities may require full scale conversion of refineries to bio processing facilities.  To meet this challenge, Becht considers the balance of shareholder and asset value with attaining climate change and sustainability targets.  Subject matter experts provide real world experience and tangible advice to clients as they progress through energy transformation initiatives.

The Becht approach encompasses all energy generation and usage systems, including application of wind, solar, and innovative technologies.  Becht’s methodology is to collaborate with clients to identify, screen, and analyze opportunity impacts and risks, thereby creating an actionable investment and execution plan to meet corporate and societal expectations.

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