Related Articles
Report Leaders
Forward article link
Share PDF with colleagues

The next glut for refiners

Margins will suffer, with refiners about to add even more distillation capacity that the world probably won’t need

Global refining capacity is about to surge, a legacy of decisions made when the oil price was high and demand for products looked rosy. Quite how much more processing the world will have by 2020 is, however, up for debate. The downturn is likely to delay some projects. Even then, the world probably has enough distillation capacity to tide it over for several decades to come. Opec, ever convinced of oil’s relentless growth, says 7.1m barrels per day of new distillation capacity will come on stream in the next five years – most of it to be built in the Middle East, China and the rest of Asia-Pacific.  That equates to around 1m to 1.4m b/d of new capacity each year – a pace of growth that wil

Also in this section
Refiners and finance: who's winning and where?
20 April 2018
Companies that splurged on sophisticated capacity additions, like Repsol and Tüpraş, and the majors with balanced upstream-downstream portfolios will benefit most
Middle distillates take centre stage
20 April 2018
Oil-product demand, especially for middle distillates, is rising more quickly that processing capacity. It's good news for refiners
Shipping sector braces for emissions storm
20 April 2018
Is the fuel oil market ready for tighter carbon and sulphur emissions rules on shipping?