According to an analysis by energy consultancy Wood Mackenzie, over a fifth (20%) of global oil-refining capacity is at the risk of closure
Team Current Hunt
According to an analysis by energy consultancy Wood Mackenzie, over a fifth (20%) of global oil-refining capacity is at the risk of closure.
The consultancy analysed 465 refining assets. It ranked approximately 21% of 2023 global refining capacity at risk of closure.
Highest number of high-risk sites are in Europe and China. About 3.9 million barrels per day of refining capacity is in a dangerous position and likely to be lost.
As per the report, 11 European sites account for 45% of all high-risk plants.
According to data from industry body Concawe, nearly 30 European refineries have closed since 2009.
The reasons for closure are competition from newer and more complex plants in West Asia and Asia and the impact of COVID-19 pandemic.
Gasoline margins will be reduced by the end of this decade due decline in demand and easing of sanctions on Russia. Expected carbon tax will also start to have a bad effect on it.
