Industry overview
The energy industry is facing some major changes. The amount of energy used by traffic and transport is growing as population numbers rise, while oil reserves are declining. Identifying new raw materials is challenging and the wide-scale adoption of new technologies will take time. The environment is already being pushed to its limits, and environmental legislation is being used to help mitigate the effects of climate change. The various changes under way around us represent both challenges and opportunities for Neste Oil. Our cleaner traffic strategy is focused on developing and producing premium-quality fuels that have a lower level of impact on the environment.
In the short term, the most important factors influencing the oil refiner’s operating environment are
- the differential between product and raw material prices and
- the price differential between Brent crude and Russian crude, and
- the USD/EUR exchange rate.
The most important factor influencing the operating environment for renewable fuels is mandated renewable content in many countries, as they offer a clear route for increasing overall renewable energy usage in traffic and transport.
What next?
- The economic situation is expected to remain challenging in 2013, particularly in Eurozone countries.
- Demand for oil is expected to grow at a modest 1% in 2013, with the majority of growth coming from Asia and other developing markets.
- The global demand for petroleum products is projected to grow modestly from 2012, while the growth in oil supply is expected to take place mainly in non-OPEC countries.
- Asian countries will probably meet demand with imports from Iraq and other countries in the Middle East if Iranian oil remains embargoed.
- Tensions between Syria and Iran could affect both crude supply and crude prices.
- Growth in shale oil production is likely to impact future oil supply
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