The study finds that major expansion projects will boost global refining capacity by 9 million barrels a day over the next three to five years. Construction across much of the Asia Pacific region, India, and Latin America is racing to keep up with demand.
Closer to home, several big Gulf Coast developments that got underway before the recession are due to come online in 2012. That will create some problems for the region.
Terrence Higgins is Hart Energy’s executive director for refining and special projects.
“We don’t have the need for that much capacity, so when that comes on, we see pressure for consolidation. So the Gulf Coast will be looking at some more challenging times.”
Hart Energy will release the full study on Monday.