Total SA Chief Executive Christophe de Margerie has said that, while European refiners are being forced to adapt to changing demand and consumer behaviour globally, it is not a “dying industry”. Total, which has changed one of its six French refineries into a stocking and training centre, is also looking to sell its Lindsey facility in the UK. However, de Margerie insisted that the company was responding to market dynamics rather than trying to exit an industry in terminal decline.
«There is no industry dying. This is something to say to consumers. When you have to shut down a plant, as an industrialist you don’t like it, its something difficult, but you need to adapt capacity to the market. The market decides and the market is us, ie consumers,» he said, citing reduced demand from European drivers. «Consumption is reducing, is diminishing because we are green and we are more willing to make things more efficient. It’s better to say this than it’s a dying industry,» he added.
«While we see a decline in consumption, around 0.7% to 0.8% a year 2010 to 2020, I strongly believe that we can do a business in refining and marketing, even in mature countries. It’s true that if you want to create new growth, then you have to go to growing countries, you won’t start new projects from scratch in declining ones. But declining is not a dying one, it’s a decline in consumption,» said de Margerie.
Source PetrolWorld
