In an over supplied competitive market with minimal margins, oil companies worldwide are investing heavily in revamping their capacity to produce more of premium products such as ultra low sulfur diesel (a diesel fuel with sulfur content as low as 10 ppm), according to a new report entitled ‘Analysing the Global Crude Oil Refining Industry 2015’ from Aruvian’s R’search.
Industry leaders such as Exxon Mobil, BP Plc, Chevron, Total and others are burdened by industry overcapacity amidst a still sluggish economy and facing sluggish demand from the market as well. There is a shift taking place as emerging markets become the focal point for the global refining industry. Governments in different parts of the world continue to expand their existing refining capacity, which is already operating at very low or no returns, just in order to sustain employment and reduce their reliance on imported fuels. As a result, a lot more refining capacity has recently benefitted the world than what has been retired.
The global refining capacity is expected to reach nearly 115 000 mbd by 2020. From 2014 onwards, Chinese refiners are expected to add a significant proportion of new refining capacity. Some of the largest crude oil refineries in the world include the Reliance Jamnagar Refinery in India, the Paraguana Refining Centre in Venezuela, the Ulsan Refinery in South Korea, the Yeosu Refinery and the Onsan Refinery also in South Korea, the Port Arthur Refinery in the US, Exxon Mobil's Refinery in Singapore and its refinery in Baytown, Texas, US. Most of the recent refining capacity additions have taken place in the Asia Pacific region.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/05112015/global-crude-oil-refining-outlook-1690/