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Surge in global refinery additions could cut margins in 2019

– We saw an improvement in global refining utilization and margins in 2017 that was a welcome turnaround from much lower levels in 2016.

Digging deep for organizational innovation

– Organizational simplicity. Clear accountabilities. Nimble planning processes are all topics on the mind of Oil and Gas CEOs globally.

Who is paying for the biofuels mandate?

– The cost of complying with the US renewable fuels standard (RFS) has become a major cost item for US refiners as both the mandate volumes and the traded price for credits —renewable identification numbers (RINs) —have increased.

MARPOL uncertainty not stopping some refiners from acting

– The implementation of tighter sulfur specifications for global bunker fuel in 2020 remains a major source of uncertainty for markets and refiners.

Unintended consequences? OPEC moves tighten market for medium grades

– Efforts by OPEC members to restrain crude supply to offset growing volumes of unconventional crude resulted in a widely acknowledged effect on global crude prices.

US crude supply: longer market, lower prices

– The US closed 2017 with crude supply up by approximately 1 million barrels/day.

Refinery upsets and additions adding to market tightness

– 2017 saw an uptick in new capacity additions but also several significant unplanned outages that helped to keep the market tight.

Trends to watch – expecting the unexpected

– By most accounts, 2017 turned out to be a better year than many were expecting. Renewed OPEC discipline and cooperation helped boost global crude prices.

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