Case Studies > Global Refiner Deploys Cost Estimation Solution to Accelerate Decision Making and Lower Costs

Global Refiner Deploys Cost Estimation Solution to Accelerate Decision Making and Lower Costs

Company Size

1,000+

Region

America

Country

Canada
United States

Product

Aspen Capital Cost Estimator

Tech Stack

Aspen Economic Evaluation software

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements

Technology Category

Analytics & Modeling - Predictive Analytics

Applicable Industries

Oil & Gas

Applicable Functions

Discrete Manufacturing
Procurement

Use Cases

Predictive Maintenance
Process Control & Optimization

Services

Software Design & Engineering Services

About The Customer

Phillips66 is one of the world’s leading integrated oil producers, operating 12 refineries in the U.S. and Canada with a throughput of 2.6 million barrels per day, making it North America’s second largest refiner. To support its downstream operations, Phillips66 invests millions of dollars a year in refining capital projects, which can include maintenance, clean fuels upgrades, and growth investments. Completing these projects in a timely, efficient manner will help the company meet its operational goals and significantly improve the bottom line. The company adheres to three principles for each project: capital discipline, operational excellence and execution, and financial optimization.

The Challenge

Phillips66, a leading integrated oil producer, invests millions of dollars a year in refining capital projects, which can include maintenance, clean fuels upgrades, and growth investments. Completing these projects in a timely, efficient manner will help the company meet its operational goals and significantly improve the bottom line. However, with market dynamics keeping refinery loads at over 90% capacity and regulatory pressures requiring clean fuels and emissions upgrades, Phillips66 faces a steady growth of downstream capital investment projects. The company adheres to three principles for each project: capital discipline, operational excellence and execution, and financial optimization. That’s why the estimating function—now managed through Aspen Capital Cost Estimator—is so critical in examining the volume of capital proposals, and providing estimates earlier in the process.

The Solution

Phillips66 adopted Aspen Capital Cost Estimator for the team that handles all refinery project estimating. Since implementation in 2001, Phillips66 has not only increased estimating accuracy, but has also moved the business decision point forward in the design process— ensuring projects are completed much faster at significant savings. A statistical database enables the company to review and analyze post project results for continuous process improvement. The AspenTech solution provides systematic work processes, allowing Phillips66 to use consistent tools and collect results from projects for ongoing benchmarking. As such, the company can require E&C suppliers to use the same tools when bidding or working on projects.

Operational Impact

Increases estimator productivity from $30M estimated/day to $80M estimated/day in two years
Reduces overruns to near zero
Reduces variability in estimates from 35% to 12%
Reduces cost variability to <15%
Increases capital project workload while keeping same staff levels

Quantitative Benefit

Increases estimator productivity from $30M estimated/day to $80M estimated/day in two years
Reduces overruns to near zero
Reduces variability in estimates from 35% to 12%
Reduces cost variability to <15%