Latest News

Refining automation expenditure to grow 5% in five years: ARC

Automation expenditures by the refining sector are expected to grow at a compounded annual growth rate (CAGR) of nearly five per cent over the next five years, according to a new ARC Advisory Group study.

After a challenging 2008 and 2009, which saw plummeting demand and a collapse in once lofty oil prices, the industry looks ahead as the global economy begins to come out of the recession and oil prices recover somewhat, the authors of the study said.

Indications are that demand for energy and refined products will increase over the next five years. In response, refiners will need to increase capacity and/or refining agility, either of which will benefit automation suppliers, according to the study.

“The global economic downturn accelerated changes that have been underway for years. Developing regions want to build new refiners, while refiners in North America and Europe face shrinking margins and under-utilisation of their assets. However, in a truly global business, there are often no clear winners and losers,” said Automation Expenditures in Refining Worldwide Outlook principal author and ARC vice president, Dick Hill.

Send this to a friend