The 1^st Iran Oil Refining Forum tackled a wide range of issues; some dealing solely with the technical aspect of the industry, while others dealt with commercial and financial dimensions affecting the industry. There is certainly a seemingly un-ending appetite for refined oil product within the global economy, with some regions outpacing others in consumption of refined goods. Companies involved in the production process of such refined goods have to be cognizant of the different cost associated with feedstock, facilities, human resources, and equipment. There needs to be a drive for profitability within the industry which will move to ensure efficiency and quality. The growing demand in global oil markets has led producers to focus on the two pillars of profit maximization and capacity improvement projects.

Koroush Tahmasebi, Chemical Engineering, Assistant Professor, Petroleum University of Technology, Iran

In an address titled, "A Glance at the Profit Maximization Opportunities in the Iranian Refining Industry," Koroush Tahmasebi set out to highlight a number of different actions that are effective in achieving refinery profitability within the Iranian setting. Enhancing refinery profitability can be seen as a viable alternative to simply moving to reduce costs.

Tahmasebi, who is also an Assistant Professor at the Petroleum University of Technology, Iran, highlighted factors that can play an important role in improving profitability within the refining industry. These include examining the role of leadership, being flexible to changes, coping with external issues and requirements while improving communications within organizations, and specified indicators in order to assess profits gained or lost opportunities. He mentioned that cost reduction is not, necessarily, a suitable method at increasing profits within the refining sector since the drive to lower costs can have an impact on the overall yield of the refinery and may very well impact the end product quality. Energy saving techniques often employed within refineries provide one example of such a situation. Therefore, there is a need to become "profit focused."

Throughout the past years there have been a number of challenges that refining companies have been forced to cope with. From new governmental regulation measures aimed at curbing emissions and other environmental impacts of the industry, to fierce competition within the field for the attraction of investments and new technologies, there are a number of issues that refiners need to be fully on top of. Moreover, the overall global economy has also unleashed a number of transforming forces that require companies to undertake re-structuring and quality programs every couple of years. Thus, in order to achieve profitability, a refiner must both address internal dynamics of the business and the external forces of the market. As Tahmasebi mentioned, "Following market trends and being flexible to market needs and being able to react early reaction are important in every business as well as refineries. The ability to be flexible to market needs is a key driver to success."

He also discussed the factors that can be influential in brining about an organizational shift towards profitability. Firstly, there is the role leadership can play by moving to develop vision, re-vision strategies and accord the relevant human and financial resources in order to achieve those strategies, and carry out the implementation of plans through the managerial maze. Changes within the internal structure usually "face some sort of human resistance." Therefore, it is important for the managing team to address the reasons behind such resistance, which can be low tolerance for change or lack of understanding of the goals set out by the company.

Another important factor is enhancing communication within the company. According to the speaker, "communication problems and lack of understanding of how the actions of one group can affect other departments and the refineries’ overall profit, is an area for improvement in every refinery in Iran." Rather than the fragmented method of doing business, refineries should focus on overall plans that focus on the process which allows the individuals involved to see the entire makeup of the process and the goals it sets out to achieve. Tahmasebi also mentioned the importance of tracking the performance of refineries and ensuring they fall within international standards. In 2003, nine Iranian refineries underwent benchmarking processes according to international standards and performance indicators. Benchmarking is a process "to measure and compare business results, highlight gaps in performance, identify the potential for improvement and change the way that business is conducted in order to achieve superior performance." It is a suitable tool for brining the managers close to the enhance profitability scheme discussed and analyzed before.

In order to achieve the goals set out a company has to be flexible to the changes and ready to cope with new conditions. These two factors are "more important than technology, geographical location or any other subject. In this competitive environment, industries that can see the long term prospects will succeed." It is obvious that costs should be minimized and profits should be maximized with all available tools, "including privatization, organization restructuring, applying new strategies and technologies." Applying the methods outline above and following a specific plan aimed at enhancing performance will undoubtedly allow companies within the refining industry to stay ahead of the competition and to survive the various changes brought about by the international market.

John Dunleavy, Business Director-Refinery, Johnson Matthey Catalysts, maintained that his company will be focused on improving plant efficiency while maintaining production rate increasing plant production rate while maintaining or improving plant efficiency. He also mentioned a number of factors that can have a direct impact on enhancing industry efficiency. In this light, "energy efficiency improvements need to be sustainable to be really beneficial so process optimization and plant surveys are essential tools." Along with increasing capacity and reliability, plant optimization will allow refineries to move towards greater efficiency which is a central feature of profitability.