Reassessing Crude Oil Purchases Based on Shutdown Risk

Open Access
Bablak, Robert
Area of Honors:
Bachelor of Science
Document Type:
Thesis Supervisors:
  • Mort D Webster, Thesis Supervisor
  • Brian Spangler Davis, Honors Advisor
  • Crude Oil
  • Oil Trading
  • Refining
  • Risk
  • Finance
  • Corporate Finance
  • Energy
This paper examines the process of how refineries obtain the crude oil that is necessary to run the plant. The thesis also examines if there are process improvements that can potentially be put in place to increase profit in refineries. Much of the research done on this topic has been in regards to recent high oil prices. This gap in research has led to a potential inefficiency in the refining process is examined in this paper. Modeling these previously unexamined variables could lead to a place where refiners can create additional profit in a time where the oil industry is suffering from recent lows in crude oil price.