AS A REMINDER: Most refining capacity shut in the past 3 years was due to
1. Explosions and bankruptcy (PES, Superior, Limetree Bay)
2. Storm damage
3. Conversion to biofuels
4. $1bn+ worth of maintenance industry thinks is overwhelming given long term trajecito of fuel demand
1. Explosions and bankruptcy (PES, Superior, Limetree Bay)
2. Storm damage
3. Conversion to biofuels
4. $1bn+ worth of maintenance industry thinks is overwhelming given long term trajecito of fuel demand
https://twitter.com/JavierBlas/status/1537014456839983106
Trajectory *
Globally, Russia’s refineries are running 30% lower than normal. Europe’s, which rely on Russian feed, are also running at reduced rates. This affects prices everywhere.
US refineries are operating at mid-high 90% capacity range. Run higher than that and units can get volatile.
US refineries are operating at mid-high 90% capacity range. Run higher than that and units can get volatile.
Before Covid, several US refiners were concerned that we had more refineries than needed to meet demand. Some plants were losing money or breaking even. But unlike upstream/shale it was a stable, stable business (I remember worrying my job would be boring)
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