01 May 2012 22:28 [Source: ICIS news]
HOUSTON (ICIS)--Global crude supply trends and refinery developments will change in the coming years, a US firm's global market report said on Tuesday.
“Changes to established crude oil and product trade flows are expected in the coming years in order to accommodate a myriad of factors, including increased production from shale deposits in North America, changes to Russia’s export duties, new crude oil streams, new refining capacity and product demand shifts,” said research firm Purvin & Gertz's Global Petroleum Market Outlook.
The change in flow to meet new refining capacity also is a change from supplying recent refineries that have idled or closed.
“A significant refinery capacity oversupply situation persists in the Atlantic Basin as a result of lower demand and startup of new capacity,” the report said. “A number of weaker refineries have already shut down and more closures are expected.”
In the US, this list includes Sunoco’s 335,000 bbl/day Philadelphia refinery in Pennsylvania, Sunoco’s shut-down 178,000 bbl/day Marcus Hook refinery in Pennsylvania and Hovensa’s 350,000 bbl/day US Virgin Island refinery. On Monday, Delta Air Lines announced its purchase of Phillips 66's 185,000 bbl/day idled Trainer refinery in Pennsylvania.
The report said surviving refineries in some markets will be operating at low utilisation rates until after 2015, unless the imbalance in the refining industry is corrected.
Worldwide refinery investments are projected to cost about $310bn through 2020, 19% the replacement costs in 2011, the study said.
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