The environment for refining companies in recent years can be summed up in one word: unpredictable. As uncertainty persists about a number of forces having an impact on the refining business—including the outlook for global economic growth and the pace of growth for alternative transportation fuels—refining margins have been volatile.
BCG developed its global refining model to give companies a powerful tool for managing in that environment. It allows companies to assess the supply and demand of oil products and the outlook for refining margins. The global refining model is a user-friendly refinery database and model based on public-company, industry and government data, as well as BCG case experience and expert interviews. It can create custom-designed scenarios that companies can use to make informed decisions.
The model is a flexible tool that can drive a variety of insights including:
The global refining model helps companies understand the competitiveness and robustness of their refining portfolio and make critical decisions related to new projects.