The Economics of Reliability - Global Refining 2022
As the world continues to recover from the economic impact of COVID-19, refineries are in a unique position to capitalize on the current market. However, despite experiencing some major tailwinds that should typically deliver record profits, refineries that do not run reliably are still unprofitable. The Economics of Reliability – Global Refining 2022 is the seventh report in the Economics of Reliability Report series. In this report, Pinnacle analysts dive into the impact that reliability has on the refining industry by analyzing the financial and operational data of 19 downstream companies.
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- Current crack spreads incentivize refineries to maximize utilization.
- Refining capacity is difficult to grow in the short term, and downstream companies will benefit from ensuring reliable operations.
- The most significant indicator of profitability in the refining industry is the price paid for feedstock. An advantageous location of a refinery is essential, but operators can boost profit margins by ensuring reliable operations.
- There is a slight correlation between the intensity of reliability spend and refinery utilization.
