09 December 2009 18:02 [Source: ICIS news]
THE WOODLANDS, Texas (ICIS news)--The down slope in US petroleum products demand since its pinnacle two years ago will eliminate vulnerable, independent refiners in the coming years, a refining analyst said on Wednesday.
Ann Kohler, energy and refining analyst with the US-based investment bank Caris and Company, said 1.0m-1.2m bbl/day needs to be removed from the market.
“We believe that gasoline and product demand in the ?xml:namespace>
US climate change legislation, the global recession over the past year, narrowed price differential between light, sweet crude and sour crude as well as increased ethanol blending initiatives and more fuel efficient cars on US roads have created a new competitive refining environment following what Kohler called the “golden age of refining” from 2003-2007.
Progress on refinery closures has been slow, Kohler said, alluding to the only formal announcements from Valero to permanently close its 112,000 bbl/day refinery in Delaware City, Delaware and Western Refining to permanently idle 17,000 bbl/day output in Bloomfield, New Mexico.
Economics would contribute to refiner attrition, Kohler told the Deloitte Oil & Gas Conference in The Woodlands,
Kohler estimated that there are about a dozen
The cost of refined products effects petrochemical commodity pricing from a feedstock cost perspective, especially in the aromatics chain.
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