29 / 160
March
2017
27
HYDROCARBON
ENGINEERING
F
rom a high of US$115/bbl in the summer of
2014, oil prices have collapsed to
approximately US$50 at the time of writing, in
October 2016. The new level reflects
continuing oversupply and weak global demand linked
to slowing economic growth around the world. This
economic situation has presented serious challenges
to hydrocarbon producers and downstream
companies.
Refinery operators are anticipating another
challenging year in 2017, but there is scope for
companies to thrive in the current economic climate.
This article describes a continuous improvement
approach that enables forward looking companies to
adapt and adjust successfully to the new realities of
the downstream business.
The key elements of this approach are:
Working with experienced partners when
evaluating which projects to pursue.
Ensuring that projects reach optimal operation in
the shortest possible time to prevent the delays
that can transform business critical projects into
regret investments.
Understanding that, even when a project is
operational, there must be opportunities to
optimise further and to improve margins.
The reality of today’s refining sector
Across the downstream sector, there are many
examples of projects and investment programmes
being delayed, redefined or even cancelled (Figure 1).
The media, potential investors, licensors, contractors
and economists all tell the same story: refiners are