Refining Trends Start to Hit Home in 2012? 
Published: Feb-10-12
 
2012 has been a challenging start to the year for refining in Europe. 2011 saw refiners dealing with overcapacity issues, operational inefficiencies and falling demand, all combined with the pressure of costlier supplies to offset the loss of Libyan crude. To add to this, in 2012 they are now faced with tightening credit availability.
 
The current credit squeeze, very evident in the Eurozone, is starting to affect some independent oil companies, notably leveraged refiners impacted by the general market conditions.
 
I think the big question in 2012 before refiners is: will they be able to offset these poor market conditions and how? This is not an easy one to answer. The refining outlook has not changed for the better. Also many European refiners are unable to buy low-priced crude for upgrading limiting their flexibility around feedstocks as well as their potential for better margins.
 
Idling and closures of refining plants is already underway not only in Europe but also in the United States and Japan. Still, refining troubles in Europe might have an unexpected silver lining. Faced with less demand for their products at home, some US refiners have been steadily increasing their supplies of distillate to Europe. These may yet turn out to be the surprising beneficiaries of the crisis.
 
The challenges facing the downstream are not likely to disappear any time soon. Accenture’s experience with downstream energy companies finds that adopting distinctive processes enable refiners to transform operations and drive value. To find out more, read our recent downstream energy transformation point of view.
 
 
 
 

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About the Authors

Arthur Hanna
Mr Hanna is the Industry Managing Director of Accenture's global energy practice. He has led a wide portfolio of work for a variety of international ...
 

Tracey Countryman
Tracey leads Accenture’s Plant and Commercial Business Service in North America helping to deliver transformation improvements in client manufacturin...
 

James Arnott
James Arnott is managing director, Accenture's Resource Operating Group, and leads Accenture Capital Project Services for Europe, Middle East, Africa...
 

Susy Tamminga
Susy Tamminga is a senior manager in Accenture’s Resources group. She has extensive experience in global business transformation, talent, change mana...
 

Richard Holsman
Mr. Holsman is the Global Energy Technology Managing Director and leads Accenture’s Europe, Africa and Latin America technology business for resource...
 

Dean Forrester
Dean is a Managing Director in Accenture’s Energy industry group based in Houston. He has been involved in many major upstream programs including imp...
 

Colin Sloman
Colin Sloman is a managing director, leading Accenture’s Global Human Capital Strategy Group. He has over 25 years’ experience spanning a number of s...
 

Julie Adams
Julie Adams leads Accenture’s Resources and Energy global research team and provides original research support and market insight for the Accenture E...
 

Jeff Miers
Jeff Miers, managing director for Energy—Analytics, is based in Houston, North America. He has 16 years of experience leading consulting and systems ...
 

Kevin Donaldson
Kevin Donaldson, managing director for Energy—Analytics for Europe, Africa and Latin America is based in London. He has responsibility for the coordi...
 

Senthil Ramani
Senthil Ramani, managing director for Analytics—Technology for Asia Pacific, is the Accenture Enterprise Services (AES) Business services and Digital...
 

Valerie Jalufka
Valerie is a Managing Director in Accenture’s Energy industry group based in Houston. She has over 14 years of experience in the Energy industry incl...
 
 
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