Rising costs call for new European refining strategies
- Arthur D. Little Ltd., London (United Kingdom)
The outlook for the global refining industry is for increased spending and reduced margins, largely because of efforts to improve the environment. A look at these trends through the end of the decade is thus in order. Three major industry thrusts are proposed to see refiners through this uncertain period. Three main thrusts are necessary: fixed costs must be reduced by re-engineering business processes and reexamining noncore business units against total and marginal costs. In this respect the best refiners are well ahead of the good ones. New cooperative ways of meeting regulations must be sought, to avoid wasteful over capacity. Joint ventures and alliances with competitors will be needed. The cooperative principle upstream must be extended and new strategies must be sought to meet product demand changes and reduce feedstock costs. The picture that is presented is tough, largely because of the wish to improve the environment. The question that must be continually reviewed is Have governments got the right balance in these regulations between the environment and the downstream industry ''
- OSTI ID:
- 5452359
- Journal Information:
- Oil and Gas Journal; (United States), Vol. 91:29; ISSN 0030-1388
- Country of Publication:
- United States
- Language:
- English
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