As tariffs, refinery closures and shifting trade conditions reshape traditional feedstock flows, refineries are investing in infrastructure improvements that allow for more flexible crude processing. Feedstock flexibility can be a practical strategy for facilities working to navigate cost pressures, supply variability and operational uncertainty.
Why Feedstock Flexibility Matters
Trade uncertainty is a major driver for feedstock flexibility planning. While future tariff decisions remain unsettled, the potential for restricted access to Canadian crudes or foreign blends has refiners assessing how to adapt. Many are preparing not in response to a known outcome, but in recognition that volatility itself is the new baseline. Flexibility enables them to pivot quickly if supply disruptions or price swings occur.
Refinery shutdowns are also reshaping regional and global feedstock markets. As facilities close or convert to renewable fuels, previously contracted crude volumes can become available to other refiners. This shift can lead to a temporary oversupply of specific crudes and presents an opportunity for others to pick up favorable pricing — but only if the receiving facility is equipped to handle the new slate.
Light vs. Heavy Crudes: Infrastructure Considerations
The difference between heavy and light crudes is central to feedstock flexibility. Lighter crudes, such as condensates and shale oils, contain a larger share of gasoline and diesel range material. Heavier crudes contain more gas oil and residual that requires conversion to produce transportation fuels.
Shifting toward lighter crudes typically increases demand on the crude distillation unit (CDU), particularly in the upper tower trays and product rundown systems. More gasoline and diesel fractions mean greater cooling demand and potential heat exchanger reconfiguration. Facilities may consider modifying crude tower internals to increase throughput or adding preflash towers to offload the CDU. Conversely, running heavier crudes increases loading on conversion units like fluid catalytic cracking (FCC) and hydrocracking systems and may require metallurgy upgrades to manage higher sulfur content and corrosive elements (such as naphthenic acids).
When blending heavy crudes with lighter, highly paraffinic crudes such as shale oils, refiners must account for the risk of asphaltene precipitation — particularly when blending occurs before the streams are heated. Sludge formation and fouling can result if incompatible crudes are mixed cold. To mitigate this risk, some facilities heat heavy and light crudes separately before blending and conduct lab-based compatibility testing to assess how different crude blends behave together at various temperatures. These precautions help preserve unit reliability and avoid unplanned maintenance and outages.
Small-Scale Revamps vs. Capital-Intensive Projects
Increasing feedstock flexibility doesn’t always require major capital expenditures. Low-cost options include modifying heat exchangers, revamping tower internals and making modest hydrotreating capacity adjustments. These types of revamps are usually timed with scheduled maintenance turnarounds to reduce downtime.
More significant changes — such as accommodating entirely new crude types or adding condensate front-end systems — are typically approached as large-scale capital projects. These may involve building new units or significantly altering upstream blending and preheating systems. Whether the capital investment is offset by greater access to low-cost feedstock or more stable profit potential is often a key financial consideration.
Operational and Strategic Outlook
Feedstock flexibility offers refiners a practical way to respond to changing supply dynamics without overhauling entire facilities. The ability to adjust crude slates based on availability, pricing or regional shifts is increasingly valuable — but making those shifts often depends on targeted infrastructure modifications. Many facilities are focusing on smaller, well-timed upgrades that allow them to adapt quickly without taking on excessive cost or risk.
In today’s market, refiners are focused on optimizing existing assets by increasing preflash capacity, modifying or replacing tower trays, adding heat exchange capacity or adjusting hydrotreating throughput. These targeted improvements can allow for meaningful shifts in crude sourcing without excessive risk or cost.
Preparing for the Future
With refining margins tight and crude supply uncertain, feedstock flexibility remains one of the most actionable strategies available to refiners. Whether adapting to shifting supply chains, responding to geopolitical disruptions or optimizing for cost, the ability to shift feed slates with confidence is increasingly viewed as a standard part of operational planning. For many refiners, the focus is turning from whether to invest in flexibility to determining the right timing, scale and approach for those investments.
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