Global Refiners Focus On Supply Security, Lower Costs As Market Disruptions Intensify

(MENAFN- Khaleej Times) Global oil refiners are increasingly prioritising supply security, operational flexibility and cost efficiency as disruptions to energy markets put pressure on margins and force companies to rethink how their refineries operate, industry executives said at Adipec 2026 in Abu Dhabi.

Speaking during a panel discussion titled“Global Refining: Navigating Supply Disruption and Structural Market Pressure”, senior executives from Adnoc Refining, OMV and TotalEnergies said the ability to respond quickly to changes in crude supply, product demand and logistics had become essential to maintaining competitiveness.

Recommended For You Iran says in 'intensive' negotiations with US to avert war via mediators

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The discussion brought together Sultan Albigishi, CEO of Adnoc Refining; Martijn Arjen van Koten, Member of the Executive Board and Executive Vice President of Fuels and Chemicals at OMV; and Benoît Decouvlaere, Senior Vice President of Refining and Petrochemicals Orient and Growth at TotalEnergies.

The session was moderated by Gaurav Srivastava, Head of Oil, Midstream and Downstream Consulting for the Middle East and India at S&P Global Energy.

Adnco Refining highlights integrated operations

Albigishi said resilience in the refining sector should be considered across the entire value chain rather than at the level of individual assets.

He highlighted the importance of integrating refining, petrochemicals and logistics operations to maintain flexibility when supply chains face disruption.

The ability to respond to changes in feedstock availability and market conditions, he indicated, was essential to protecting operations and maintaining customer relationships.

The discussion highlighted how integrated refining and petrochemical businesses can help companies manage volatility by providing greater flexibility in production and product distribution.

OMV focuses on flexibility and market responsiveness

Van Koten said refining companies needed to respond more quickly to changes in crude prices, product demand and market conditions.

He highlighted the importance of integrating refining and petrochemical operations, enabling companies to adjust production and optimise assets according to changing market requirements.

The OMV executive also stressed the importance of workforce capabilities, operational reliability and the ability to translate market signals into decisions at refinery level.

He said competitiveness increasingly depended on a combination of asset quality, integration, cost management and proximity to customers.

TotalEnergies highlights diversification

Decouvlaere emphasised the importance of diversification and integrated operations in responding to market disruptions.

He discussed the benefits of maintaining flexibility across refining, trading and marketing activities, allowing companies to respond to changes in demand and supply conditions.

He also highlighted the importance of improving industrial performance and reducing operating costs to protect refining margins.

The discussion showed how refiners are seeking to strengthen their market positions through operational improvements rather than relying solely on additional production capacity.

Refiners prepare for changing fuel demand

The executives also discussed how the global refining industry would need to adapt to changes in demand for transport fuels and lower-carbon products.

Van Koten highlighted OMV's investments in alternative fuels and electric mobility, including its expansion into electric vehicle charging infrastructure.

He also discussed projects involving sustainable aviation fuel, renewable fuels and green hydrogen as part of the company's efforts to develop new business opportunities.

The panel noted that while demand for some traditional transport fuels could face pressure over time, aviation fuel and other specialised products could provide growth opportunities.

Executives stressed that investments in lower-carbon technologies needed to remain commercially viable and respond to customer demand.

Decarbonisation must remain commercially viable

The panel highlighted the importance of reducing emissions while maintaining refining competitiveness.

Executives discussed opportunities involving energy efficiency, alternative feedstocks, hydrogen and the production of lower-carbon fuels.

They said the economic viability of new technologies would remain a key consideration, particularly as refiners face pressure from operating costs and changing market conditions.

The discussion also addressed the role of scale, integration and partnerships in reducing the cost of deploying new technologies.

AI to improve refinery efficiency

Artificial intelligence and digital technologies were identified as increasingly important tools for improving refinery operations.

The executives discussed the potential for AI to support maintenance planning, production optimisation, forecasting and operational decision-making.

The panel highlighted how integrated digital systems could help refiners respond more quickly to market changes while improving efficiency and reliability.

As global refining markets continue to evolve, executives said companies would need to balance supply security, profitability and emissions reduction to remain competitive over the long term.

ALSO READ

Adnoc, global energy giants strengthen partnerships to secure future supplies Al Jaber says global energy security needs overhaul as 1bn oil barrels drained from inventory Adipec 2026: World's energy supply buffers have been eroded, Adnoc CEO says

MENAFN03112026000049011007ID1111910812