What is the Nelson Index?

The Nelson Index is a reference frame used to assign values ​​to oil refineries based on their level of complexity. The higher the score of the refinery on the Nelson index, the more complicated it is. More complex refineries are able to handle and produce a wider range of products and therefore have more economic values. This index is used to divide information about refineries simply easy to understand people. No special knowledge of the oil and gas industry is required to contextualize the score. Nelson introduced his ideas in the business diary and the Nelson index continues to be most used in the oil and gas industry. The publication of the score for various refineries can be found in business publications as well as in the minutes of specific oil companies in financial magazines, as this information may be relevant to the interests of investors who consider who to give their money.

forDetermination of the Nelson Index for each refinery is assigned a score in the refinery and adds the score together. The more equipment the refineries, the more versatile and flexible it is. Low score refineries can only be able to handle oil in a limited degree, for example, while the refiner with a high Nelson index can handle low quality raw raw crop crop. This allows him to use the cheapest oil on the market, rather than to force refineries to buy expensive high -quality oil for all manufacturing supplies.

In addition to handling a range of raw stages, the Nelson high -high refineries can also produce more oil and gas products. This expands its production potential. Refineries can modify production to meet the market needs, use high prices for specific products and increase the production of products that are not currently sold in the open market. This increases the potential of gains and allows refineries to remain in continuous production..

Advanced refineries tend to have the Nelson index around nine. Since 2010, the highest scoring refinery of the Jamnagar refinery in India with a score of 14 has been. This massive refiner complex is able to produce an extensive range of oil and gas products. It can process 661,000 barrels of oil a day.