Hot spots: Europe and China home the best quantity of high-risk websites, placing about 3.9 mn bpd of capacity in jeopardy.
| Photo Credit: REUTERS
More than a fifth of the global oil-refining capacity is at danger of closure, power consultancy Wood Mackenzie present in analysis, as gasoline margins weaken and the stress to scale back carbon emissions mounts.
Of 465 refining belongings analysed, the consultancy ranked about 21% of 2023 global refining capacity at some danger of closure.
Europe and China home the best quantity of high-risk websites, placing about 3.9 million barrels per day (bpd) of refining capacity in jeopardy, Wood Mac discovered, based mostly on its estimate of web money margins, value of carbon emissions, possession, environmental funding and strategic worth of refineries.
There are 11 European websites that account for 45% of all high-risk vegetation, the report discovered.
Shut since 2009
About 30 European refineries have already shut down since 2009, information from trade physique Concawe reveals, with almost 90 nonetheless in operation.
This spate of closures has been introduced on by competitors from newer and extra advanced vegetation in West Asia and Asia in addition to the affect of the COVID-19 pandemic.
Gasoline margins are anticipated to weaken by the top of this decade as demand dips and sanctions on Russia ease whereas anticipated carbon tax also needs to begin to chew, the Wood Mac analysis confirmed.
Operating prices may go up a lot that “closure may be the only option,” stated Wood Mac senior oils and chemical compounds analyst Emma Fox. The seven high-risk websites in China are small-scale impartial refineries.
