220
39
th
Annual Report
Although the number of refineries remained unchanged in North
American region, total refining capacity has increased by 340,000 b/d
due to starting up the expansion project at Motiva refinery, south east of
Texas, raising the capacity from 325,000 b/d to 600,000 b/d, in addition
to raising the refining capacity in some other existing refineries.
Closing and rationalizing refining capacity dominated in North
America and Western Europe, as in 2010 and 2011. The two regions
continued to witness sales of refineries and mergers of refining
companies.
Capacity decline continued in the countries of the Organization
for Economic Cooperation and Development (OECD), as they work
to recover from the 2008 global recession as well as the measures
taken by the European countries for managing debt crises, which
affected some of them.
Western Europe closed one more refinery in 2012 after two closed
in 2011. Total capacity has fallen by more than 400,000 b/d.
Refining industry in China and India is witnessing a significant
development aimed at raising the refining capacity to meet the strong
local demand growth and improve the flexibility of the refineries to
process a wider range of crude oils.
Under the order from the country’s National Development and
Reform Commission, China is seeking to modernize many smaller
refineries, with capacities that range 40,000-120,000 b/d. In 2011, the
National Development and Reform Commission issued guidelines
to eliminate refineries smaller than 40,000 by 2013 to encourage
the economies of scale and improve the energy efficiency in the
refining industry. In response, several local refineries are expanding
or merging with larger refineries to avoid closing.
