Characteristics and Trends of Technological Innovation in the Global Refining and Petrochemical Industry

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Characteristics of technological innovation in the refining and petrochemical industry: The refining and petrochemical industry falls under the downstream sector of the oil industry; its development is influenced, on the one hand, by the quality and price of oil and gas resources, and on the other hand, by market demand. In different stages of the oil industry’s value chain, technology serves distinct purposes: in the fields of exploration and production, it is used to expand the range of available resources and to realize their value ； In the oil refining sector, improving processing efficiency, reducing production costs, and realizing process value ； In the chemical industry, it is necessary to improve product quality and brand value, as well as increase the added value of products. Technological innovation activities at various stages of the oil industry value chain also exhibit distinct characteristics. Upstream technological innovation activities typically take the form of R&D plus on-site technical support, with R&D activities including advance preparation, integrated development, and the creation of generic technical solutions ； Technical support activities, on the other hand, require scientific processes and methods to address specific, personalized challenges in production; they usually involve collaborative efforts from various specialties such as geophysical exploration, drilling, and logging, and demand years of practical experience. Overall, experience and know-how are very important in upstream technologies; technical services play a greater role than mere technology licensing. Compared to the upstream sector, technical standardization in the refining and petrochemical industry is more prominent, and technical protection through patents has also increased significantly. This is because, compared to the highly varied stratum conditions, refining technology is more replicable; technical exchanges between companies occur more frequently, and a good technology can be licensed for use by multiple companies. Refining technology as a whole has become mature; compared to the first half of the 20th century, the pace of technological innovation has slowed down significantly. Incremental innovation is the dominant form, with process innovations aimed at improving efficiency and reducing costs being the main type of technological advancement. In comparison, due to the complexity of the chemical industry and its closer alignment with end-user demands, technological innovation exhibits greater diversity. The production of traditional bulk chemical products, represented by terphenyltriene, relies mainly on the optimization of raw materials and process improvements, whereas competition in areas such as synthetic resins and synthetic rubbers focuses more on developing new products to increase their added value. Development trends in refining and petrochemical technologies. In the long term, the development of the world’s refining industry faces the following challenges: (1) The quality of crude oil tends to become worse and heavier ； (2) The demand for petroleum products is shifting toward lighter grades ； (3) The quality of oils is becoming cleaner ； (4) Emission limits for refineries are becoming stricter. Accordingly, heavy oil processing technologies that maximize the conversion of heavy crude oil into light petroleum products will remain one of the key focuses of global refining technology ； Clean fuel production technology will focus on improving catalyst performance as the processes become more refined ； The focus of emission reduction in the refining industry will shift to improving energy efficiency in order to achieve low carbon emissions ； Refinery scales continue to expand, and the integration of refining and chemical processing increases. The development trends in the petrochemical industry are as follows: (1) The sources of chemical raw materials are shifting toward diversification, including petroleum, natural gas, coal, and biomass ； (2) The peak period for the commissioning of new petrochemical capacity in the Middle East is approaching, while the rapid development of unconventional oil and gas in North America and the rise of coal chemical industry in China will have a significant impact on the industry’s supply landscape ； _ (3) Demand will further shift toward emerging markets, with downstream product manufacturing placing increasing demands on the performance and functionality of polymer products ； (4) Green and clean production processes. Accordingly, vigorously developing new technologies to diversify raw material sources, creating synthetic material products with high performance and added value, and developing a new generation of production processes that are efficient, low-cost, produce few by-products, and are pollution-free have become the main directions for the development of petrochemical technology. Currently, comprehensive chemical companies such as BASF and Dow Chemical are transforming into suppliers of high-value-added products and system solutions. On the one hand, the focus of competition in the traditional petrochemical industry is shifting further toward the end of the value chain, with an increased emphasis on a market-oriented approach and innovation in collaboration with customers ； On the other hand, investing heavily in research and development to acquire intellectual property rights, establish technical barriers, and gain commercial value remains an important strategy for companies to succeed in competition. This article will focus on the advanced practices of international major oil companies with integrated upstream and downstream operations in the technological innovation management of refining and petrochemical industries.