In a refinery distillation plant, there are many components of interest to be analyzed thermodynamically, e.g., the crude oil heating furnace, the distillation column and a network of heat exchangers. Previous studies showed that the highest exergy losses occur when there is a heat transfer process especially,, in the crude oil heating furnace where high quality fuel is used to heat the crude oil, which is a low quality duty, beside the high temperature difference. Therefore, it is proposed in this work to perform distillation in two stages rather than one to reduce heat duty of the heating furnace and thus reducing irreversible losses. In this paper, energy, and exergy, analyses of a traditional one-stage crude oil distillation unit and a newly proposed two-stage crude oil distillation unit are conducted to study, energy, and exergy efficiencies of these units and determine the exergy, losses. The results are compared for both one- and two-stage distillation units. In this regard, a commercial software package, SimSci/PRO II program is used to carry out both energy and exergy calculations. It is found that the overall exergy efficiencies,for single- and two-stage distillation units are 14.0% and 31.5%, respectively. The proposed two-stage distillation unit shows 43.8% decrease in the overall exergy losses and 125% increase in the overall exergy efficiency.