What Refiners Should Prioritize During Volatile Markets
Market volatility increases the economic consequences of operational instability. The ability to run predictably and take advantage of margin spikes can have a significant impact on refinery performance.
Our new white paper, Reliability as a Strategic Lever in Volatile Markets, outlines several areas refiners should prioritize during periods of volatility.
Ensure operational discipline
Operational discipline is essential in any market condition. When margins become highly sensitive to performance, the impact of mistakes or inconsistencies across shifts increases.
Organizations should ensure that operating personnel share a consistent understanding of critical control and health monitoring variables, and emphasize operational consistency for core unit management activities.
Align teams on risk tolerance
Periods of market volatility can change how organizations think about readiness to run. Operations and maintenance teams should remain aligned on risk tolerance and how it affects day-to-day decisions, with a focus on maintaining that alignment as tolerances change across any aspect of operations.
Ensure all employees are aware that shifts in operational priorities do not affect tolerance for safety risks. If not explicitly stated and reinforced, the implicit message can drive unintended beliefs and behaviors.
Protect constraint units
Not all assets contribute equally to refinery profitability. A subset of units typically determines site performance under the prevailing crack structure and crude slate.
Protecting these constraint units through enhanced monitoring and inspection attention can reduce the likelihood of unexpected outages.
Shift toward risk-based maintenance
Where safe and permitted, refiners may evaluate a risk-based approach to preventative and major maintenance, or adjust risk thresholds if already in place. The priority should remain on failure modes that meaningfully increase trip probability and on work that protects readiness to run.
Strengthen monitoring and early warning
Many organizations are accelerating the use of advanced analytics and asset health monitoring tools. These capabilities support condition monitoring for rotating equipment, corrosion, fouling, catalyst health, and utilities.
For companies with programs under development, now may be the time to accelerate efforts.
Maintain alignment between operations and commercial teams
In volatile markets, the optimal production plan can change quickly. Operations teams benefit from regular communication with commercial teams to understand which constraints matter most under current market conditions.
Reliability determines who monetizes volatility
High volatility raises prices, but it also raises the value of being online. When market conditions shift rapidly and uncertainty remains high, operational availability becomes a critical factor in determining which refineries remain competitive.
You can read the full analysis by downloading the white paper here (no registration required).
And if your team is navigating similar reliability challenges, Becht’s experts are always available to provide perspective and support.
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