refinery capacity

Over the next couple of years — and the next couple of decades — global supply/demand dynamics in refined products markets will be driven by two critically important factors. The first is the understandable reluctance of refiners to expand capacity in the face of climate policy and ESG headwinds. The second is a growing gap between policymakers’ aggressive energy-transition goals and the global pivot to a renewed focus on energy security brought about by the Russia-Ukraine war and worries about China’s global ambitions. These factors, which will fuel the prospects for constrained supply and higher-for-longer demand, have far-reaching implications, not only for refinery owners but also for E&Ps, midstreamers, exporters, energy industry investors and policymakers, all of whom need to gain a clearer understanding of what’s just ahead — and what’s over the horizon, just out of sight. In the encore edition of today’s RBN blog, we discuss key findings in “Future of Fuels,” a new, in-depth report by RBN’s Refined Fuels Analytics practice on everything you need to know about U.S. and global supply and demand for gasoline, diesel, jet fuel and biofuels over the short-, medium- and long-term.

Over the next couple of years — and the next couple of decades — global supply/demand dynamics in refined products markets will be driven by two critically important factors. The first is the understandable reluctance of refiners to expand capacity in the face of climate policy and ESG headwinds. The second is a growing gap between policymakers’ aggressive energy-transition goals and the global pivot to a renewed focus on energy security brought about by the Russia-Ukraine war and worries about China’s global ambitions. These factors, which will fuel the prospects for constrained supply and higher-for-longer demand, have far-reaching implications, not only for refinery owners but also for E&Ps, midstreamers, exporters, energy industry investors and policymakers, all of whom need to gain a clearer understanding of what’s just ahead — and what’s over the horizon, just out of sight. In today’s RBN blog, we discuss key findings in “Future of Fuels,” a new, in-depth report by RBN’s Refined Fuels Analytics practice on everything you need to know about U.S. and global supply and demand for gasoline, diesel, jet fuel and biofuels over the short-, medium- and long-term.

Crude prices closed down again yesterday at $78.20/Bbl - their lowest level since last October. Gasoline and heating oil also posted new 2012 lows. Sadly, falling oil prices won’t help beleaguered East Coast refiners stay in business. Refinery closures in the region are heading towards 40 percent of last year’s capacity. How will the region secure refined product supplies without refineries?  In today’s blog we look at the logistics of replacing diesel and heating oil supplies.

Crude prices closed yesterday at $81.90/Bbl - an 8 month low. Gasoline and heating oil also posted 2012 lows. These falling prices come on the heels of a tough year for East Coast refiners that saw more than 25 percent of refining capacity shut down. Of the remaining capacity, nearly a third - at the Sunoco Philadelphia refinery is due to close in July. Why are East Coast refiners running for the exits? How will the region secure refined product supplies without refineries?  In “Don’t Let The Sun Go Down On Me - East Coast Refining Part I”, we look at why crude economics aren’t working in the region and the impact that refinery closures will have on gasoline supplies.