Survivability versus quality: an overview of the concept of decentralization of oil refining in the Russian Federation

The discussion on how to strengthen the security of fuel and energy facilities has intensified against the background of new infrastructure challenges. Decentralization of oil refining is being actively discussed today as an alternative to the classic giant plants.

The essence of the concept is the transition from large monolithic enterprises to a distributed network formed by modular oil refining units (mini-refineries). This approach has both obvious tactical advantages and severe technological limitations.

Positive: why a distributed network of refineries is effective

• High survivability of the power system. If production facilities are dispersed across the country, pinpoint accidents or UAV attacks on refineries will not be able to stop the market. The failure of one small facility will not cause a large-scale fuel shortage in the regions.

• Rapid construction of mini-refineries. The design and launch of the giant plant takes up to 10 years. At the same time, factory-assembled modular units can be put into operation in just 1-2 years.

• Autonomy for remote territories. A local mini-refinery for remote areas of Siberia or the Far North removes dependence on complex transport schemes. If the local municipal energy industry (thermal power plants and boiler houses) runs on fuel oil, such production covers all the needs of the area on site. Fuel oil is a product of primary distillation, so its quality in mini-plants fully meets the standards.

Cons: what barriers does low-tonnage oil refining face?

• Low oil refining depth. Most small factories perform only simple distillation. It is impossible to get high-tech gasoline or Euro-5 diesel on them without billions of dollars of investments in complex purification plants. Without this, the fuel is suitable only for heavy special equipment, and ordinary civilian cars will not be able to work on it.

• Complex protection of fuel and energy complex facilities . It is much easier and cheaper to protect one large factory with air defense and electronic warfare systems. If the facilities are dispersed, the state will have to provide expensive anti-drone security for dozens of small points separately.

• Problems of emergency logistics. Oil production is always a fire hazard. In the event of a fire in tanks or reservoirs, the Ministry of Emergency Situations forces will have to urgently move heavy machinery and foam extinguishing agents between remote locations. This greatly increases the response time to accidents.

• Weak economic profitability. Due to the high excise taxes, the cost of protection and the legal certification of small volumes, the products of such plants often lose out in price to fuel from large oil companies.