Downstream business gets the high-tech treatment

The downstream oil industry’s traditional business model focuses on selling the output of refineries rather than on satisfying customer needs. Control over the early stages of the value chain has historically been key to long-term success and profitability for the vertically-integrated major oil companies. However, the commodity nature of many refined petroleum products, and the pressures of globalisation are forcing companies rapidly to shift their emphasis, writes Neil Thomas, manager, energy practice, Arthur D Little, London