America, which has led the refining industry since the start of the oil age in the mid-nineteenth century, is facing the threat of being finally dethroned by China as early as next year, according to the International Energy Agency (IEA), writes Bloomberg.
Chinese refining capacity is cited as nearly tripling since the turn of the millennium, with its crude processing capacity is expected to surge to 1 billion tonnes per year, or 20 million barrels per day, by 2025 from 17.5 million barrels at the end of 2020, according to China National Petroleum Corp.’s Economics & Technology Research Institute.
“China is going to put another million barrels a day or more on the table in the next few years. China will overtake the US probably in the next year or two,” Steve Sawyer, director of refining at industry consultant Facts Global Energy (FGE) was quoted as saying.
As capacity rises in China, India and the Middle East, plunging oil demand may take years to fully recover from the crippling fallout from the coronavirus pandemic.
An estimated several million barrels a day of refining capacity will likely be pushed out of business, adding to the record 1.7 million barrels a day of processing capacity shuttered this year, with the US accounting for over half of these closures, says the IEA.…