Success stories

Read our distribution and supply chain optimization case study

A major US Gulf Coast multinational oil and gas company asked KBC to perform an assessment of crude oil supply and storage, including leased terminal facilities and piping supplies. Their objective was to increase flexibility in storage and transfer methods to enable processing of a greater variety of crude oils and improve the refinery margin.

The challenge

All points of the system had to be considered, including:

  • Internal and external crude storage tanks
  • Barge and ship supply
  • Near-coast and regional pipeline supplies
  • Inter-terminal pipeline transfers


KBC worked with the customer's trading, operations, planning and technical departments. Simulations were tested with stochastic (discrete event) modeling techniques. A statistical analysis of data and a full operational review were developed. Processes were benchmarked against those of peers, worldwide and reg

The results

The project resulted in an increase of inventory working volume by 750,000 bbls, reduced demurrage by US$6 billion per year and an increase in refinery margin by $0.1-0.5 per barrel.

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