AI in Refining: Strategies for Competitive Advantage

This technical report discusses the integration of artificial intelligence (AI) in the refining sector to enhance operational efficiency amidst market volatility. It outlines the structural pressures facing the refining industry, including declining long-term demand and increasing net refining capacity, which contribute to margin compression. The report emphasizes the necessity for refining leaders to adopt AI technologies to transition from traditional optimization methods to real-time, data-driven decision-making processes. It details how AI can unlock significant earnings before interest and taxes (EBIT) uplift by 2030, with specific examples of value creation across various functions such as planning, operations, logistics, and maintenance. The report also identifies critical steps for companies to transition from isolated AI pilots to comprehensive, scalable transformations, including the establishment of standardized data practices and the redesign of operational processes. Overall, it presents a framework for refining companies to leverage AI effectively in a challenging economic environment.