Wood Mackenzie will be attending ERTC 2017, where Alan Gelder, Vice President of Refining, Chemicals & Oil Markets at the company, will provide an overview on how refiners should approach the challenging new market environment and improve their long-term viability.
The downstream and chemical industries are continuously evolving. As we move towards a more sustainable market environment over the next few years, refiners face a number of challenges. One of these is new bunker fuel regulations, put in place by the International Maritime Organization (IMO). The new rules require a reduction in the sulfur content of shipping fuels from 3.5% to 0.5% by 2020. Although shippers have various options, there will, no doubt, be implications for the refining sector.
Currently, a key challenge facing refiners is the uncertainty of how these regulations will evolve and the impact they will have on the sector. Moderating the Keynote Leaders Panel at ERTC, Alan Gelder discusses how refiners are addressing these issues. He will also highlight how the market could evolve and how it could affect the refining sector.
Gelder is also moderating a panel that is assessing how European refiners – and Greek refiners in particular – can remain sustainable and competitive. The downstream sector has undergone significant changes in recent year and as European demand for refined products is expected to fall, refiners in the region need to ensure they can access profitable export markets.
Changes in the US and Middle East add to the pressure on European businesses to revise and strengthen their strategies in order to remain competitive. Refiners do have options to explore: adjusting production to meet demand from other consumers; produce high-sulfur product for lower returns; or to turn away from gasoline to other growth areas, such as petrochemicals.