You can only gain access to certain items and special pricing if you have logged in. Login Now.
![](/themes/images/store/notAvailableBig.gif)
AM-95-26 Superior Refining Performance Beyond 2000 - Breaking Traditional Paradigms
Brad Van Tassel, McKinsey & Company, Inc.
Format:
Electronic (digital download/no shipping)
Associate Member, International Member, Petrochemical Member, Refining Member -
$0.00
Government, NonMember -
$35.00
Description:
Over the last 5 years, refining companies have not performed well financially, generating returns below the cost of capital. Environmental regulations have caused the industry to invest significant amounts of capital, and while new regulations will cause the shutdown of between 500 thousand and 1.2 million barrels per day of capacity, the industry structure will remain poor and financial returns for the average player will likely be volatile, cyclical, and below the cost of capital. Based on this industry outlook, refining companies seeking superior performance will have to break the traditional paradigms and adopt world-class practices used in other industries. Changes required to significantly improve financial returns will include shifts in business strategy to accommodate growth, and development of nontraditional services, as well as initiates to dramatically reshape cost structure and improve profitability. Making the changes to become a superior performer in the refining business will require a clear vision and strong leadership at multiple levels in the organization. The transformation will also require changes in company culture and incentive plans that encourage managers to act as owners. In addition, superior performers will push accountability for results to low levels in the organization. Given the herd mentality of the oil industry, superior performers must take decisive, preemptive action to generate a substantial, competitive advantage.
Product Details:
Product ID: | AM-95-26 |
---|---|
Publication Year: | 1995 |