ExxonMobil sees Integration as key strength

Pryor.pngThe blog is a great believer is learning from the secrets of the world’s most successful chemical companies. Thus it was fascinated to read a report by ICIS’s Stephen Burns of a major speech by ExxonMobil (EM) president Stephen Pryor.

Pryor warned that “capturing the benefits of downstream integration requires more than simply co-locating petrochemical and refining operations“. And he outlined 5 key areas for success, arguing that integration models need instead to focus on:

• Extracting value from every molecule
• Developing the flexibility to select the feedstock that delivers the highest returns for the entire integrated complex, and being able to adjust processes and the product mix in real-time to sustain the optimal recipe.
• Maximising cost savings through economies of scale
• Making the best use of investment capital through joint planning and shared engineering, construction, and infrastructure
• Giving staff a wider perspective by rotating managers between refining and chemicals

Pryor added that EM “is still seeking – and finding – new opportunities to more closely integrate refining and chemicals“.

He regards this constant search for improvement as the key factor behind EM’s achievement of an average 20% ROCE (return on capital employed) for refining and chemicals over the past decade.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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