Repositioning for success in the downstream industry
ON DEMAND Webinar: Repositioning for success in the downstream industry
The global downstream industry is going through major shifts brought by the world’s unprecedented lockdown, volatility of oil and gas prices and low petrochemical and transportation fuel demand. Furthermore, with the pivot to a lower carbon world and the accelerated pressure for the industry to transform itself and meet global demand, new strategies are necessary to address this shifting landscape.
Technological innovations, sustainability and business resilience play an important role in ensuring growth and are being factored in today’s downstream business leader’s strategies.
This webinar will gather downstream industry experts, discussing how to position companies for future business growth and what success looks like in 2021 and beyond.
- With the fall in crude prices and reduced demand from end-user markets, what have the immediate impacts of COVID-19 been on refineries and petrochemicals?
- What are the short-term responses and long-term strategies that downstream companies are putting in place to reposition for growth?
- In particular, what is the role of cost-cutting, digitisation, value chain localisation, and M&As in repositioning for growth?
- How will COVID-19 impact the downstream industry’s climate change and sustainability agenda?
5 KEY TAKEAWAYS FROM THE ADIPEC WEBINAR
- The COVID-19 crisis, while it has vigorously hit the downstream industry, is rather accelerating trends that had already started impacting the downstream sector, such as the fuel demand decline
- Oil price decline, typically considered as "good news" on the supply side by most downstream players, has been offset by demand destruction especially in refining
- Demand for chemicals is uneven and very much dependent on the end-use market, but has broadly resisted quite well to the crisis
- Short-term crisis management and tactical responses, such as cost reduction and deferral are critical but should not get in the way of long-term strategic responses such as value chain localisation, incubation of clean businesses, digital transformation, amongst others, that will truly position the downstream players for future growth and improve the resilience of the sector
- The sustainability agenda of downstream players is a structural driver that is unlikely to be impacted in the long-term, however, liquidity considerations may pose short-term risks on the speed of execution of that agenda
*Key takeaways provided by the moderator, Frederic Ozeir, Partner at Strategy&, part of the PwC network
THE LIVE WEBINAR POLL RESULTS
WILL THE SHOCK CAUSED BY COVID-19 LEAVE A LASTING IMPACT ON THE REFINING AND PETROCHEMICALS SECTOR?
of the attending energy professionals thought the impact will depend on the response that the sector will propose
answered no, the impact will be temporary
said yes, the impact will be
WHICH OF THE FOLLOWING STRATEGIC RESPONSES TO THE CRISIS SHOULD DOWNSTREAM PLAYERS ADOPT TO REPOSITION THEMSELVES FOR GROWTH?
Value chain localisation
Incubation of clean and renewable businesses
Cost reduction and deferral
Mergers and Acquisitions targeting further consolidation
HOW WILL THE SHOCK CAUSED BY COVID-19 IMPACT THE DOWNSTREAM INDUSTRY’S SUSTAINABILITY AGENDA?
of the attending energy professionals said the shock caused by Covid-19 would have a negative impact in the short-term only
responded that the impact would be positive
thought that the industry's sustainability agenda would be impacted negatively in the short and long-term