José L. Mesa, VP, Refining, Terminals & Pipelines at bp, shares his perspective on the challenges facing European refining, from rising costs and global competition to the growing importance of operational excellence and flexibility. He highlights how technology, digitalisation and closer integration between refining and trading can strengthen competitiveness and maximise the value of existing assets.

Looking ahead, José discusses the need for greater alignment between regulation, infrastructure and investment, while emphasising the importance of energy security, industry collaboration and developing the skills needed to secure the future of European refining.

Where do you see the biggest opportunities to strengthen competitiveness across existing refining operations?

European refining now competes on cost more than on demand. Demand is falling everywhere, but costs are rising fastest in Europe. So, the biggest opportunities are the ones we control. The first is reliability, because unplanned downtime is the most expensive cost a refinery carries. The second is cost discipline that lasts, so we get leaner without losing capability. The third is commercial capture: linking refining closely to supply and trading so every barrel goes where it’s worth most.

Portfolio choices matter too. Being competitive isn’t about having the most capacity. It’s about having the right assets, run very well. At bp, we’ve invested steadily over the last decade in reliability, efficiency and flexibility, and that investment is still paying off. We stay focused on operational excellence today while preparing our sites for future opportunities in biofuels, hydrogen and lower-carbon energy.

How important is flexibility, and where are the greatest opportunities to improve it?

Flexibility now decides who stays competitive. Markets, crude slates and regulation are changing faster than our planning cycles were built for. I see three areas to work on.

The first is feedstock: processing a wider range of crudes and, more and more, co-processing renewable feedstocks in existing units.

The second is product: low-cost changes that let us shift yields as demand moves. We saw the value of that this summer. With a more complex geopolitical backdrop and strong seasonal travel demand, we optimized operations at our Castellón refinery and increased jet fuel production by 30% to meet what the market needed. That’s flexibility in practice: changing production safely and efficiently as demand changes.

The third is decision speed. Being part of an integrated company helps here. Close links between refining, supply, trading and shipping give us a better read on the market. They also help us secure the right crude options and send production where it creates the most value, so we can act on market signals in days rather than weeks.

Flexibility also lets existing sites move into lower-carbon products step by step, without starting from scratch.

What role can technology and digitalisation play, and where can they deliver the most practical value?

For me, the real opportunity is combining technology with human expertise. Our operators and engineers bring decades of experience, and digital tools help them turn that knowledge into better decisions every day. Technology delivers the most value when it helps people perform at their best, not when it tries to replace them or adds more dashboards.

At bp we’ve moved from planning to delivery. We’re building AI and data tools around the people who use them every day: operators, engineers and maintenance teams. The biggest value is in three areas. One is spotting early warning signs before they become outages or incidents. Another is predictive maintenance, which turns reactive repairs into planned work. The third is helping teams capture margin shift by shift.

 The hard part isn’t the technology itself. It’s adoption, reliable data and cyber security. Digital tools only work when the people using them take ownership.

Why is it important for bp to be part of conversations like ERTC?

No single refiner can carry the risk of the transition alone. Many of the biggest levers are shared: infrastructure, standards, permitting and policy timing. bp brings a whole-system view across refining, supply, trading and technology, and our global portfolio helps us learn quickly. ERTC is where operators, technology providers and policymakers can test ideas against what actually works on site. It’s also a great place for our people to learn, and I’m pleased that a team from our Castellón refinery will be joining us this year.

What conversations are you hoping to have in Madrid, and what does the industry need to be talking about more?

Madrid is a fitting host. Spain’s refining system has shown how flexible and resilient a well-connected system can be. I’d like to talk about four things:

• Getting the timing of regulation right. Industry isn’t asking for less ambition, but well-meant rules that land all at once can stall investment.
• Focusing on projects that actually get built. With clear frameworks for SAF, renewable diesel and hydrogen.
• Energy security. Refining capacity is easy to lose and very hard to rebuild.
• Competitiveness. Europe faces a widening gap in energy and regulatory costs compared with many other regions. If we want to keep industrial capability, support high-quality jobs and keep investing in the energy transition, competitiveness has to be a strategic priority alongside decarbonization.

What the industry needs to talk about more is people. We need to keep skills and safety standards strong through a period of major change, and attract the talent who will run these assets in the 2030s. Europe doesn’t lack ambition or expertise. What it needs now is alignment across policy, infrastructure and investment.