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Rising World Refining Capacity May Hurt Gulf Coast

A new study by Houston publisher Hart Energy predicts that world refining capacity will grow over the next several years. That’s despite recession-related drops in demand for finished fuels and the closure of some existing refineries.



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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.

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew Schneider is the senior reporter for politics and government at Houston Public Media, NPR's affiliate station in Houston, Texas. In this capacity, he heads the station's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments...

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