Summit Delegates Show 'Can-do' Spirit in Spite of Europe's Downstream Woes

The difficulties that Europe's downstream oil and gas players face are well-established – particularly falling fuels demand, excess refining capacity and unusually strict economic and environmental regulations from the European Union. However, participants at GDS International's fourth annual Next Generation Downstream Europe Summit (NG Downstream) showed a willingness to overcome those obstacles.

"The challenges for European refiners are indeed real and will not ease in the coming years," said Jean-Marc Sohier, vice president manufacturing methods and performance with Total Refining and Chemicals, who was one of the delegates at the Oct. 7-9 summit in Bremen, Germany. DownstreamToday was official media sponsor of the event.

Sohier pointed out that measures such as the following should help refiners to weather the barrage of competitive pressures under which they operate:

• Operational excellence
• Strict control of operating and capital costs
• Maximizing asset availability
• Integrating refining with downstream petrochemistry to maximize synergies
• Valorization

"Depending upon size and location, some projects to convert part of the gasoline production and to reduce high-sulfur heavy fuel oil production may be part of the answer," Sohier added.

Brad Farrow, managing director with summit sponsor RLG International, said the event offered a "unique perspective" on Europe's refining situation. Moreover, Farrow said that he observed a different outlook among delegates in Bremen compared to what he witnessed at the 2013 NG Downstream Summit in Milan, Italy.

"Despite year-on-year pressure on margin, and shrinkage of capital budget availability, the conference delegates brought a more positive 'can do' attitude than was evident last year," he explained. "Attendees worked, and shared, ideas on short-term payback, value-added investments, 'inside the fence' optimization, and contractor/supplier partnerships that might offer small but numerous margin recovery opportunities."

"A recognition that large capital injection was unlikely for most operators, drove discussion to improvement opportunities through greater operational scrutiny and both front-line and contractor engagement," continued Farrow. "While none of the delegates underestimate the challenge facing European refiners, as a group those attending this year’s conference were clearly committed to success from within, with limited expectations for external pressures to change in the foreseeable future."

Rob McCabe, EMEA executive relations director with GDS, expressed great satisfaction with the outcome of the 2014 event.

"This year's summit was yet again a huge success, thanks to all the participants and I mustn't forget the hard-working GDS International team that shaped the summit and also delivered value onsite," said McCabe. "The delegates were able to enjoy three separate roundtable sessions and participate in one-to-one business meetings to explore challenges. It is a very busy summit format but worked incredibly well this year, maximizing the time and opportunities for all concerned."

"This year's summit saw leading industry peers come together to share their challenges and to find a way to pull together to improve the European marketplace," added Tom Roberts, GDS account manager, who along with his colleagues has already begun planning for next year. "We had great solutions from the likes of SAACKE, RLG International, Invensys, Jacobs and Emerson, to name a few. It was a structured and compact event, and it has shaped the theme for next year's summit in Amsterdam."

To learn about how to participate in the NG Downstream Summit Europe 2015, contact Roberts at tom.roberts@gdsinternational.com.    

(EDITOR'S NOTE: For scenes from the summit in Bremen, visit GDS International's website.)

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