Asset consolidation, inventory reduction and developing new skills in trading and hedging characterized the new profitability paradigm. At the same time, technology change began to accelerate. But due to the harsh realities of the day, most companies took on less ambitious projects, meanwhile maintaining the custom mainframe systems built to support the business model of the prior era. Since the late 1980s, focus has shifted toward increased profitability, core competence and consolidation. Pacesetters in the industry are replacing their asset-driven approach to business with one of a trader's mentality.
Crude prices are lower than ever, putting pressure on downstream businesses to improve returns.
Joint ventures, alliances and mergers are significantly changing the competitive landscape. Although most companies continue efforts to reduce capital employed, a new trend is emerging where careful inventory management allows companies to take advantage of trading opportunities in a volatile market. And the retail site is changing with new service offerings to increase traffic flow at the stations. One new approach is to fully integrate the supply chain across all functions and assets. The petroleum supply chain.