Automation key to refinery resilience amid slowing oil demand, says IEA
The International Energy Agency's latest Oil Market Report demonstrates a structural shift in the industry, accelerating the need for automation and intelligent flow control at refineries to maintain profitability and operational resilience.
According to the IEA's May 2025 report, global oil demand growth is expected to slow to 740,000 barrels per day this year, driven by record electric vehicle (EV) adoption and a challenging business climate.
At the same time, OPEC+ is increasing output, and refining margins reached a 12-month high in April, underscoring the volatility that refinery operators must now navigate, it stated.
In this environment, automation and intelligent flow control technologies are becoming essential tools to best weather economic headwinds and remain competitive on the global stage, says an industry expert in the oil and gas sector.
Speaking at IMI's recent Petrochem Conference in Sardinia, Nicola Dessalvi, Petrochem Manager for Process Automation at IMI, said: "Refineries are facing a perfect storm of slowing demand, unpredictable pricing, and rising supply. In this context, automation is no longer a luxury – it's a necessity."
"By integrating intelligent control systems and real-time diagnostics, operators can reduce plant downtime during planned maintenance, optimise throughput, curb energy consumption, and respond dynamically to market shifts," he stated.
According to Dessalvi, automation technologies such as advanced valve diagnostics and predictive maintenance systems can help refineries maintain high margins even as market conditions fluctuate.
As the global energy landscape continues to evolve, these tools can ensure plant managers are equipped to make data-driven decisions, reduce unplanned downtime, and extend the life of critical assets. They will also be crucial to maximising the efficiency of existing infrastructure during the transition to lower-carbon operations, it stated.
"Refining margins may be strong today, but the underlying market signals are clear," remarked Dessalvi.
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