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From refiner to refiner
Investment in key processes and technologies is becoming more important in the refining industry today.
As the recession dents demand, the economic downturn has seen short-term forecasts for refinery product consumption revised downwards, forcing some operators to re-evaluate their options in order to sustain profitability.
As well as this new factor, the fundamental challenges facing the sector remain. First,
there is a shortage of capacity for processing heavy, low-cost crudes now reaching the market (i.e., dirtier crudes with high sulfur, nitrogen, metals content and even some
acidic crudes) into the lighter and cleaner products demanded by ever more stringent government regulations. At the same time, refiners are under pressure to achieve higher yields while consuming fewer resources in the form of steel, energy and CO2.
Current financial constraints are also adding to existing cash-flow problems that are linked to the industry's inherent cyclical nature, increasing the need to look at more innovative ways of maintaining reasonable margins. Similarly, pressure to reduce costs has created strong demand for the latest technology to optimize processes and ensure reliability.