Tags: Gasoline | Refineries | Closing | Worldwide

FT: More Gasoline Refineries Closing Worldwide

Tuesday, 10 Apr 2012 07:32 AM

As gasoline consumption flags in developed economies and grows in emerging markets, refineries from Japan to Pennsylvania are closing up shop.

“It’s really a tale of two markets,” Toril Bosoni, senior oil analyst with the oil watchdog International Energy Agency, told the Financial Times. “You have very contrasting pictures for economic growth and demand, and refining is reflecting what’s going on elsewhere.”

According to IEA figures, more than 3 million barrels of daily refinery capacity have closed in western countries since the financial crisis, while emerging economies have added 4.2 million barrels per day, with another 1.8 million per day coming this year.

Production of crude oil in the United States is at its highest level in eight years, yet half the refining capacity on the U.S. East Coast is scheduled to disappear. If those planned closings happen, the East Coast will become even more dependent on imported oil.

Refineries on the Gulf of Mexico coast, home to 43 percent of U.S. refining capacity have turned the United States into a net exporter of petroleum products for the first time since the Truman administration, but weakened U.S. consumption has wedged refineries between high input costs and lower sales.

According to the Investors Business Daily, domestic production on federal lands has declined under Obama by 275,000 barrels per day from its 2010 peak and by 17,000 barrels a day since he took office in January 2009, making the United States the only major nation to deliberately limit domestic oil production even as war clouds and unstable governments place foreign sources in jeopardy.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
261
2012-32-10
Tuesday, 10 Apr 2012 07:32 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved