Methods of calculating the reduced output capacity of a petroleum refining plant

Summary

• 1. The reduced capacity and the reduced actual volume of production should be calculated from the specific processing costs. This method of calculation makes it possible to include in the reduced capacity of a petroleum refining plant all the changes that have been made in the productive capacity of the engineering equipment, so as to give a correct reflection of the productive activity of the petroleum refining plant.

• 2. The degree of utilization of the reduced capacity of a petroleum refining plant permits an estimate to be made of the utilization of the basic production funds of each plant, and makes a judgment possible of the magnitude of the reserves of the plant as a whole so that petroleum refining plants may be compared with one another.