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15-542: In February 2020, with the acquisition of the Martinez Refinery, PBF Energy currently owns and operates six domestic oil refineries and related assets with a combined processing capacity, known as throughput, of approximately 1,000,000 bpd, and a weighted average Nelson Complexity Index of 13.2. On November 30, 2022, PBF Energy acquired of the common units representing limited partner interests in PBF Logistics. PBF

30-468: A complexity factor to each major piece of refinery equipment based on its complexity and cost in comparison to crude distillation, which is assigned a complexity factor of 1.0. The complexity of each piece of refinery equipment is then calculated by multiplying its complexity factor by its throughput ratio as a percentage of crude distillation capacity. Adding up the complexity values assigned to each piece of equipment, including crude distillation, determines

45-609: A refinery’s complexity on the NCI. The NCI indicates not only the investment intensity or cost index of the refinery but also its potential value addition . Thus, the higher the index number, the greater the cost of the refinery and the higher the value of its products. In the second edition of the book Petroleum Refinery Process Economics (2000), author Robert Maples notes that U.S. refineries rank highest in complexity index, averaging 9.5, compared with Europe's at 6.5. The Jamnagar Refinery belonging to India-based Reliance Industries Limited

60-421: Is now one of the most complex refineries in the world with a Nelson complexity index of 21.1. The Oil and Gas Journal annually calculates and publishes a list of refineries with their associated Nelson complexity index scores. Some factors for various processing units: If an oil refinery has a crude distillation unit (100 kbd), vacuum distillation unit (60 kbd), and catalytic reforming unit (30 kbd), then

75-401: Is related to inventories and process time : time to fully process a single product. Using Little's Law , one can calculate throughput with the equation: I = R ∗ T {\displaystyle I=R*T} where: If you solve for R , you will get: R = I / T {\displaystyle R=I/T} This business term article is

90-448: The inventory in a warehouse may mislead investors or others about the organizations condition by inflating the apparent value of its assets. The theory of constraints and throughput accounting explicitly avoid that trap. Throughput can be best described as the rate at which a system generates its products or services per unit of time. Businesses often measure their throughput using a mathematical equation known as Little's law , which

105-522: The NCI will be 1*(100/100) + 2*(60/100) + 5*(30/100) = 1.0 + 1.2 + 1.5 = 3.7. Throughput (business) Throughput is rate at which a product is moved through a production process and is consumed by the end-user, usually measured in the form of sales or use statistics. The goal of most organizations is to minimize the investment in inputs as well as operating expenses while increasing throughput of its production systems. Successful organizations which seek to gain market share strive to match throughput to

120-514: The Toledo refinery from Sunoco in December 2010 for approximately $ 400 million. PBF went public in December 2012 with a $ 533 million initial public offering. In 2015 PBF acquired the 189,000 BPD Chalmette, Louisiana refinery from ExxonMobil and its partner, the state-owned Petroleos de Venezuela , for $ 322 million, in a deal that included interests in chemical facilities, pipelines and other assets at

135-470: The complexity of various refineries and units. To calculate the index, it is necessary to use complexity factors, which compare the cost of upgrading units to the cost of crude distillation unit. It was developed by Wilbur L. Nelson in a series of articles that appeared in the Oil & Gas Journal from 1960 to 1961 (Mar. 14, p. 189; Sept. 26, p. 216; and June 19, p. 109). In 1976, he elaborated on

150-475: The concept in another series of articles, again in the Oil & Gas Journal (Sept. 13, p. 81; Sept. 20, p. 202; and Sept. 27, p. 83). NCI = ∑ i = 1 N F i ⋅ C i C CDU {\displaystyle {\text{NCI}}=\sum _{i=1}^{N}F_{i}\cdot {\frac {C_{i}}{C_{\text{CDU}}}}} Where: The NCI assigns

165-888: The fourth largest independent refiner in North America. PBF's refineries in Paulsboro (NJ) and Delaware City (DE) have been cited by environmentalists for processing crude oil from the Amazon River Basin in South America. In 2015, the Delaware City and Paulsboro refineries were processing more than 3,300 and 2,666 barrels per day of crude originating in the Amazon, respectively. The company had 3,165 employees as of 2017 with annual revenue of $ 21,787 million. In June 2019, PBF agreed to purchase Shell's Martinez, California oil refinery. The sale

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180-425: The rate of market demand of its products. In the business management theory of constraints , throughput is the rate at which a system achieves its goal. Oftentimes, this is monetary revenue and is in contrast to output, which is inventory that may be sold or stored in a warehouse. In this case, throughput is measured by revenue received (or not) at the point of sale—exactly the right time. Output that becomes part of

195-495: The site located just ten minutes from downtown New Orleans. In July 2016, PBF acquired the 155,000 BPD ExxonMobil refinery in Torrance, California for $ 537.5M. The acquisition included ownership interests in several crude gathering and transportation pipelines, product pipelines, products terminals and crude and products storage facilities, and increased PBF's total throughput capacity to approximately 900,000 barrels per day, making it

210-497: Was finalized Feb. 1, 2020. As of October 2023, PBF owns and operates six oil refineries, with a combined processing capacity (known as throughput) of approximately 1,000,000 bpd and a weighted average Nelson Complexity Index of 13.2. Nelson complexity index The Nelson complexity index (NCI) is a measure to compare the secondary conversion capacity of a petroleum refinery with the primary distillation capacity. The index provides an easy metric for quantifying and ranking

225-538: Was formed in 2008 as a joint venture by Petroplus Holdings and the private equity companies Blackstone Group and First Reserve (the PBF in PBF Energy stands for Petroplus, Blackstone, and First Reserve), each committing $ 667 million in equity. In September 2010, Petroplus announced plans to sell its 32.62 percent stake to its partners for $ 91 million as PBF acquired the Paulsboro refinery from Valero Energy . PBF then acquired

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