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Focus on Maximizing Refinery Profits to Bolster Demand

Due to the fluctuating global economy and sluggish economic growth, refining companies operating in the petrochemical sector are burdened with a host of challenges. The significant decline for diesel is another factor that has contributed to the downturn of the petrochemical sector in recent years. At present, players operating in the petrochemical sector are seeking new avenues and potential opportunities to maximize the refinery profit by focusing on middle distillate refining. Moreover, as refineries around the world are increasingly probing new technologies that could minimize the diesel output, the global middle distillate refining market is expected to witness major developments in the upcoming years.

Recent advancements in petrochemical science are projected to play an imperative role in shaping the growth trajectory of the global middle distillate refining market during the forecast period. At present, players involved in the current middle distillate refining market are increasingly focusing on finding a cost-effective middle distillate refining process that offers both, economic as well as environmental benefits. Recent technical developments within the middle distillate refining market are primarily aimed at maximizing profit margins due to which, the global middle distillate refining market is on course to witness a steady growth in the upcoming years.

Shift from Crude to Chemical Underway in Petroleum Sector

The petrochemical sector is likely to witness major changes in the foreseeable future due to evolving regulatory landscape and increasing demand for environment-friendly fuel alternatives. The surge in the popularity of carbon-neutral and renewable solutions is expected to transform the entire landscape of the global middle distillate refining market during the assessment period. At present, majority of the refineries around the world is largely focusing on the production of distillate transportation fuels and gasoline. Thus, the demand for middle distillate refining has remained steady and as per current observations, the trend is likely to continue during the assessment period.

The onset of the mandated fuel economy standards coupled with the swelling growth of the alternative drivetrains and shared mobility services are expected to have a direct impact on the demand for transportation fuels in the upcoming decades due to which, the global middle distillate refining market is slated to grow at a consistent pace. A number of refineries around the world are leaning toward product the diversification to gain a competitive edge over other competitors. The shift from crude to chemical operations is a growing trend within the petrochemical sector and likely to provide lucrative opportunities to the players involved in the current market for middle distillate refining.

Furthermore, as refiners continue to minimize on the overall high sulfur fuel oil output post 2020, the focus is anticipated to remain on middle distillate refining and light ends output. A number of refiners are also gravitating toward improving existing facilities that are in line with modern refinery requirements. The booming automotive sector across developing regions is projected to fuel the demand for middle distillate refining during the forecast period.

Weakening Product Margins amid Ongoing COVID-19 Pandemic

The outbreak of the COVID-19 pandemic is expected to have a strong impact on the overall prospects of the global middle distillate refining market in 2020 and the first half of the forecast period. Notable pricing differentials for middle distillate crude grades, particularly from the South East Asian region, are likely to weaken in the forthcoming months due to the soaring demand for arbitrage barrels and dropping product margins. The second and the third quarter witnessed a major decline in the demand for crude oil due to which, the global middle distillate refining market witnessed sluggish growth in 2020. The short-term shutdown of refineries followed by suspension of flights around the world amid the ongoing COVID-19 pandemic is expected to have a deep impact on the overall growth of the market for middle distillate refining in 2020.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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