| KPI or key performance indicators, scorecards, do | | | | international economic position, the risks and costs in |
| these terms sound familiar to you? Of course, these | | | | military and political aspects must also be considered. |
| are varied methods to gauge the efficiency of the oil | | | | Of course, as the economic power of a country |
| refining company. But there is one type of measuring | | | | increases, so shall too its risks for terrorist assaults. |
| system that has slowly becoming the mainstream in | | | | The country becomes the envy of another. That is |
| performance management. The system is called the oil | | | | why most countries do not disclose facts about how |
| metrics. Like those mentioned earlier, oil refining metrics | | | | refined their products are, since highly refined products |
| are also indicators of good or bad performance, | | | | translate to high economic value. The United States, |
| focusing on areas such as product saleability, industry | | | | two decades ago, did spend billions on protecting its oil |
| scalability and structure, investment return and financial | | | | assets in the Middle East. The expenses however |
| solidity. But unlike scorecards and key performance | | | | were mainly focused on military protection and did not |
| indicators, the metrics covers areas that are not even | | | | even cover actual maintenance cost of the oil refining |
| visible to the end consumers. Learn more about the | | | | facilities. Non-monetary metrics, then, tells whether an |
| metrics for oil refining companies. | | | | oil company is stable or not based on the risks and |
| With the varied potential indicators that can be found in | | | | cost of protection its operation entails. |
| an oil refinery's daily operation, the aspects covered by | | | | Aside from these monetary and non-monetary |
| the metrics are generally categorized into two. These | | | | aspects, the metrics for an oil refining company is also |
| are the non-monetary metrics and the monetary | | | | greatly applicable to the profitability, environmental |
| metrics. As the name implies, monetary metrics | | | | safety and business value. Market accessibility should |
| concentrates on areas where finance is mainly | | | | be included as one of the indicators since it tells |
| involved. Before, a country's gold reserve serves as its | | | | whether the oil refining operation is feasible or not. |
| marker for economic position. Today, however, a | | | | Accessibility of market involves agreements on export |
| country's oil reserve plays a significant part, not only in | | | | and import processes. Therefore, if the feasibility of |
| its, fiscal stability, but also on its wealth influence to | | | | importing and exporting oil is slim in a certain market, |
| other countries. In fact, the world today has seen the | | | | then it is not worth running an oil refinery. Environmental |
| transfer of power from country to country through oil | | | | safety also spells the success for the company. The |
| assets. Monetary metrics, therefore, denotes the | | | | more hazardous its operation is to the environment, the |
| wealth position of the company and its country in the | | | | more likely it will lose customers. |
| global market. | | | | These indicators however are just a piece of pie. |
| The non-monetary metrics are areas of an oil refining | | | | There are still many areas to be considered, but you |
| company where risks in political stability and cost of | | | | get the idea, putting an oil metrics system for your |
| military protection are being put to the test. While it is | | | | refinery will give you an advantage and greater value, |
| true that a country's oil assets determine its | | | | not only for your market, but also in the global oil arena. |