Anglo-Dutch oil company Royal Dutch Shell PLC
(RDSA) said Tuesday it would carefully reassess its downstream portfolio due to
overcapacity in the refining industry and the growth potential for
petrochemicals in
Asia
.
"Industry refining margins in 2010 are likely to remain fundamentally weak
because of the expected ongoing global excess product inventory, particularly
for middle distillates," the company said in its annual report.
Shell said margins may recover slightly in the second half of this year as the
global economy improves.
The company said it expects global output growth, an indicator of future demand
for its products and services, to recover after last year's decline.
"But the recovery is likely to be slow and uncertain given the depth of
contraction in 2009," Shell said.