All CATEGORIES
☰ Menu
Ohio Utica Shale

Refinery construction to grow by $300 billion by 2020, study says

By Bob Downing Published: July 8, 2014

From GlobalDate today:

FOR IMMEDIATE RELEASE

  • Global refining expenditure to 2020 represents an annual average of almost $48 billion and 1.6 thousand barrels per day
  • Thanks to various construction and expansion projects, 'refining expenditures in the Middle East and Asia are forecast to represent a combined 70% share of the world’s total spending,' says analyst

Planned Refinery Construction and Expansion Projects to Fuel Global Refining Capital Expenditures to Over $300 Billion by 2020, says GlobalData

LONDON, UK (GlobalData), 8 July 2014 - The global refining capital expenditure (CAPEX) is forecast to reach approximately $333 billion between 2014 and 2020, representing an annual average of almost $48 billion and 1.6 thousand barrels per day (mbd), says a new report from research and consulting firm GlobalData.

The company’s latest report* states that the total expenditures in Asia will amount to 46% of the world’s total, with China at 17%, India at 12% and All Other Asia at 17%, thanks to National Oil Companies (NOCs) increasing capacity levels in China, India, Vietnam, Indonesia, Malaysia and Pakistan.

The Middle East’s expenditure will account for 23% of capital spending by the end of the forecast period, with NOCs building capacity in Saudi Arabia, Kuwait, Iraq, Iran and the United Arab Emirates (UAE) to meet their growing oil demands for refined product export purposes.

Carmine Rositano, GlobalData’s Managing Analyst covering Downstream Oil & Gas, says: “Thanks to the planned construction of efficient, large and complex grass-root refineries, such as cracking and coking facilities, along with various expansion projects, refining expenditures in the Middle East and Asia are forecast to represent a combined 70% share of the world’s total spending.

“Elsewhere, the CAPEX for Latin America (including Mexico), Africa, the Former Soviet Union and the United States is forecast at 18%, 8%, 4% and 1% of the global total, respectively.”

China will be the largest single market with 17% of global CAPEX, correlating with 22% of all capacity additions up to 2020. GlobalData attributes the country’s reasonable project costs to less expensive labor and the construction of large efficient refineries in areas with significant existing infrastructure, such as docks, pipelines and storage terminals.

By contrast, Africa will experience significantly higher production costs for its own new grass-root projects, which are planned in Nigeria, Angola and Gabon. These countries have a lack of highly-skilled workforces and minimal infrastructures, meaning that most, if not all, equipment, materials and labor will need to be imported.

Rositano continues: “Further costs for this region will also result from the financial and geopolitical risks associated with the construction of onshore refining facilities in African countries, such as Algeria and Uganda. These factors will push Africa’s refining CAPEX to almost $28 billion by the end of 2020.”

*Global Refining Capital Expenditures Forecast at over $300billion for New Capacity on-line by 2020; Refining Margins to Remain Under Pressure as Annual Capacity Increases Forecast to Exceed Growth in Annual Oil Demand

-ENDS-

Print
Add This

SUBSCRIBE VIA RSS

OHIO.COM VIDEOS

See the most recent drilling report and an injection wells map From NewsOutlet.org

Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.