tony fountain speakes at the 2013 oil & money conference
DESCRIPTION
Reliance Industries, CEO, Tony Fountain shares his views on the prospects of the refining industry in North America, Europe and Asia. View his full presentation from the Oil & Money 2013 ConferenceTRANSCRIPT
Prospects of the Refining Industry in
North America Europe and Asia
Oil & Money October 2013
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The Context
• Important phase of industry transition
• Competitive dynamics similar to other major industrial business
- Cost of Production
- Supply Chain Management & Feedstock Costs
- Flexibility
- Access to Market
- Higher Level of Government Intervention
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Key Trends (1 of 2)• Led by Non OECD economies, Global Oil demand likely to grow 3
million barrels per day in the period 2013-15.
• Net refining capacity additions of similar volume, but forces significant
transition.
- New capacity additions of circa 5 million barrels per day
- NGLs & Bio Fuels growth to reduce the call on refinery
• US revolution & competitive surge.
• Middle Distillates over Gasoline.
• Changes in Refinery ownership.
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Key Trends (2 of 2)
• Indian medium term demand growth slows; Exports likely to
rise with commissioning of Paradeep (East Coast).
• Strong Chinese demand growth, but backed by matching
refining capacity additions.
• Surge in complex export oriented Refineries in the Middle
East
• Pressure likely to increase on the least efficient refineries
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Success Factors
The right ‘Formula’ generates consistently good performance
- Technology
- Scale & Flexibility
- Access to Advantaged Feedstock
- Access to Markets
- Efficiency
- Working Capital & Risk Management