Refinery capacity tight plans
for expansion & upgrading
Supply: EIA, FACTS, company presentations, Oil and Gas Journal, Hydrocarbon
ProcessingBoxscore.; Demand: EIA, BP World
Statistical World Review 2006, FACTS, IEA
SSo stepping back, in 2007 we were seeing a future with:
High crude oil prices, which in turn supported development
of oil sands and more use of biofuels.
Policy changes worldwide that were supporting more biofuel
Petroleum demand still growing strongly.
Distillate markets expected to stay particularly tight.
Good refining margins for several years and hopes for a
Golden Age for this industry emerging
Refining capacity remaining tight in general, and a large
number of expansion and upgrading plans emerging.
SYet some concerns were being voiced.Were the expansion plans going to result in
an over-supply of capacity?The chart
shows that at that time, the main capacity additions in the Middle East and
Asia might exceed demand increases in those regions, but demand seemed