The refining industry is at the cusp of transition due to the severe jolt given by COVID-19 pandemic. The pandemic has accelerated the transition process, coaxing companies to fast-track the pursuit of their future plans and at the same time part with assets which have a bleak chance of operational profitability.

As refined product demand declined through the first half of 2020, it exerted pressure on refining assets, particularly the ones with narrow margins and low competitive position. While refiners were able to partially offset the losses by shutting or divesting few of the weak assets, the pandemic driven downturn, coupled with impending transition has also weakened the inter-regional trade activity. The refiners are therefore unable to find buyers for many assets and in the absence of any potential buyer or alternative use, are idling the facilities.

Download Infographic

Access an in-depth comparative view of your position in the chemical and refining industries Company Strategies and Performance (CSP) from IHS Markit, helps you to better understand your competitive position so that you can spot threats and opportunities in the market, and act accordingly. Rely on a unique combination of in-depth analysis and data which compares the strategic direction of the top chemical producers, as well as the refining and marketing performance of major downstream operators globally.

• Review competitive behavior and strategies
• Grasp market dynamics & key trends
• Benchmark your performance & competitive position
• Develop comprehensive analysis required by leadership/management
• Take advantage of world-class data and tools behind the analysis from IHS Markit

Posted 18 February 2021 by Rajat Joshi, Research Analyst, Oil Markets, Midstream, Downstream and Chemicals, S&P Global Commodity Insights

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.