Oil & Gas

Refinery Processing Cost — Operating Expense

Recording the monthly refinery operating costs: energy, catalysts, maintenance, and labour.

Account NameTypeDebit ($)Credit ($)
Refinery Operating Expense (LOE)Expense (+)12,000,000.00-
Cash / Accounts PayableAsset/Liability (-)-12,000,000.00

💡 Accountant's Note

Refinery operating costs are production expenses — they go through WIP inventory and are ultimately part of the cost of finished products. Energy (catalytic cracking, distillation) is typically the largest single cost.

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