Europe, N America Refiners May Shut 4.3 M B/D Capacity By 2013

Europe, N America Refiners May Shut 4.3 M B/D Capacity By 2013
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Τετ, 18 Αυγούστου 2010 - 17:30
Refiners in North America and Europe could shut down a combined 4.3 million barrels a day of refining capacity by 2013, according to Vienna-based consultancy JBC Energy.
Refiners in North America and Europe could shut down a combined 4.3 million barrels a day of refining capacity by 2013, according to Vienna-based consultancy JBC Energy.

Industry consolidation is likely to hit
Europe the hardest, JBC Energy said in a report. The outlook for the continent's refiners is poor given waning gasoline demand from North America and increased competition from diesel producers in Russia and Asia .

"With cracking margins hovering below a hardly profitable $2 a barrel and demand expectations for the next years being bearish, there is still a list of European refineries likely to either be mothballed or even shut down in the near future," JBC said.

The consultancy forecasts 2.5 million barrels a day of unprofitable refining capacity will need be shut down in
Europe by 2013, assuming refinery utilization stays at an average 82%, JBC says.

Separately, North American shutdowns of around 1.8 million barrels a day are required by 2013 to balance out the market, assuming refinery utilization averages 86%.

JBC's forecasts are more pessimistic than estimates from the International Energy Agency, the energy watchdog for the Organization for Economic Co-operation and Development.

The IEA expects OECD refiners to close1.4 million barrels a day of refining capacity through 2011.

"We expect this figure to increase as refiners continue to react to poor economics and further closures are announced," the IEA said in its medium-term oil market report in June.

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