Innovation way to excel in process manufacturing

THE world map for process manufacturing is changing, as industry realigns and impacts the global economy. As a result, globalisation has accelerated. The recent crude oil price volatility has challenged oil industry executives, while presenting a new opportunity for the chemicals sector. Increased market volatility is now the new normal with fluctuating feedstock pricing, incessant commodity trading, rampant currency movements, and rapid demand and supply shifts. Industry players who can rapidly mitigate market changes will be leaders in their space.

New market entrants are rattling traditional ones. For example, the Middle East and India have staked new grounds with newly built and highly automated mega refineries. This challenges traditional players, such as Japan, South Korea and Europe, which face increased competition from Chinese refiners. In the upstream sector, North American shale players have given traditional producers a run for their money before the crude oil price volatility took root in late 2014.

With prices now above the US$50 per barrel benchmark, surviving shale players have entered 2017 with improved technology, increased efficiency and more aggressive market plans. They are also better armed with a more efficient capital expenditure structure. Amid this industry tussle to meet global demand and supply, oil and gas producers, engineering, procurement and construction (EPC) companies and refineries alike should consider underlying industry demand dynamics. What drives success for countries such as China in this global economy?