The energy management strategies of oil refineries are subject to frequent revisions in an effort to maintain profit margins. On one hand, there are oil refineries that are prepared to invest millions of dollars on energy management initiatives to establish a strong sense of corporate social responsibility. On the other hand, there are those that are not ready to accept the financial feasibility of investments in energy management solutions.
New analysis from Frost & Sullivan (energy.frost.com), Energy Management in Oil Refineries Market, finds that market earned revenues of over $6.4 million in 2008 and estimates this to reach $18.5 million in 2015.
"Depleting oil resources and technological challenges associated with tapping into crude oil sources pose bottlenecks for oil companies," says Frost & Sullivan Consultant Priyanshu Kumbhare. "These oil companies face a ruthless competitive business environment and have to deploy energy management strategies to lower production costs without compromising on product quality."
To complicate matters, environment protection measures are being tightened all over the world and oil companies have to incur significant capital expenditure to meet the higher compliance standards of these regulations. Petroleum companies worldwide are scaling up investments in state-of-the art energy management practices that involve numerous measures at every stage of the value chain.
Energy management in the form of process optimization, technology upgradation, energy efficient practices, corporate planning and control and merger of quality management systems (QMS) with environmental management systems (EMS) enables firms to raise the bar on productivity and optimize service quality at the same time. In the oil refineries market, the green approach is a surefire way to support business growth.
However, energy managers in the oil refineries sector neither possess the requisite knowledge nor do they have the resources to identify areas that have energy-saving potential. Some energy managers refrain from implementing energy efficiency improvement projects due to preoccupation with other activities, while others perceive it as a marketing gimmick.
In this situation, energy service companies (ESCOs) can help prevent energy wastage and ensure high levels of production. Professional ESCOs are certified by the government for providing energy auditing services, and their teams consist of qualified and knowledgeable professionals who develop superior quality products and solutions.
"Bridging the gap between ESCOs and oil refineries is essential to create a win-win situation for both parties involved," says Kumbhare. "The current situation requires firms to focus on outsourcing the energy management solutions to professional ESCOs that have vast experience in implementing these solutions."
This also reduces the cost of ownership, increases return on investment, and furthers the green cause. To implement energy management projects, it is imperative to keep in step with the ever evolving technological developments across various processes. Under such circumstances, professional ESCOs are more reliable as they have more time to devote to various issues across diverse processes.
If you are interested in more information about this study, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.
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Energy Management in Oil Refineries Market / P216