Lower oil prices incentivises refining industry to upgrade technology

Unitel Technologies Inc. has reported that the recent lower oil prices has incentivised refining companies to develop and upgrade process technologies, particularly hydrotreating (HT), hydrodesulfiurisation (HDS), and hydrocracking (HC). The underlying objectives are to develop and/or test new catalysts and optimise process parameters to improve profitability in an increasingly challenging environment.

To offset decreased revenues on the production front, vertically integrated oil companies are looking to shore up refining profits. Stand-alone refiners, however, are more focused on the use of increased capital resources in order to prepare for the future when oil prices are likely to be higher, and feedstock choices may include heavier and less desirable crudes.

President of Unitel, Dr. Ravi Randhava, commented: “In any event, you want to be sure that you are on the right track before making multi-million dollar capital investments. A pilot plant is usually the best starting point to identify the most promising options.”

Edited from press release by Angharad Lock

Read the article online at: https://www.hydrocarbonengineering.com/refining/18082015/lower-oil-prices-incentivises-refining-industry-to-upgrade-technology-2749/