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Purvin & Gertz Announces New Study: Rationalization of Refining Capacity21 July 2009
Houston, July 21, 2009
Purvin & Gertz releases a new study titled Rationalization of Refining Capacity. Precipitous declines in demand for refined products that started in 2008 coupled with an emerging surplus of refining capacity are severely challenging the refining industry in many regions of the world. Profitability is being threatened worldwide by low refining margins with particularly weak conditions becoming evident in the developed economies of Canada, Europe, Japan and the United States. Alfred Luaces, Managing Consultant in Purvin & Gertz’ Houston office, says, “Product demand growth is expected to resume next year, but our view of very slow growth in the industrialized economies will only prolong the weak margin environment until adequate refining capacity is rationalized. We expect that no less than 1 million barrels per day of refining capacity needs to shut down in the Atlantic Basin to allow a return to profitable operating rates.”