Turnarounds are the yearly shutdown of an oil or gas refinery in order to make way for inspection and repairs. A properly planned and executed turnaround will ensure that production for the rest of the year will go on smoothly and efficiently. However, a poorly planned one can be catastrophic not only for the oil company but the overall market as well.
Time
The most important resource consumed during a turnaround is time. The more days it takes for all the repairs to finish, the bigger the loss to income will be. However there are other equally significant concerns that a delayed turnaround can cause. For instance, since the refinery in a turnaround is not producing the needed oil, market supply will continue to drop until all repairs have been finished. Once the supply gets too low, prices of oil can go up in order to balance the high demand.
Managing resources
To speed up the turnaround process, companies must be able to hire enough people and acquire all the necessary equipment that will aid the process. The challenge is to hire just the right amount of manpower and machinery so that everything will be finished by the deadline— hiring too much will result in overspending, while too little will affect the supply.
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