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WoodMac figures out fall in European and Chinese refineries

Oil&Gas Materials 28 March 2024 19:55 (UTC +04:00)
Lada Yevgrashina
Lada Yevgrashina
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BAKU, Azerbaijan, March 28. Wood Mackenzie, a respected global consulting company, has analyzed 465 oil refineries worldwide, suggesting that certain facilities in Europe and China could face closure, Trend reports, referring to the company.

"The European facilities with the biggest danger of shutdown include 11 out of 90 refineries with a combined refining capacity of 3.9 million barrels of oil per day. This is related to shrinking refining margins and rising environmental fees. Furthermore, tiny private refineries in China face the prospect of shutdown due to fierce competition with larger state-owned competitors, who boast cheaper manufacturing costs," WoodMac's experts believe.

In this regard, the company sees a possible risk for 21 percent of global oil refining capacity in the next few years.

European refineries, in particular, may face increased operational costs as gasoline consumption is expected to fall due to the growing popularity of electric vehicles.

Wood Mackenzie (WoodMac) is a global provider of data and analytics for the energy transition. Wood Mackenzie provides data, analytics, insight, events, and consultation in the renewables, energy, and natural resources industries.

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