Covid-19 accelerates refinery rationalisation
Significant regional changes hurried along by the pandemic will permanently alter global dynamics
Global refining capacity looked over-supplied even before the Covid-19 pandemic, with projections of capacity growth exceeding increases in refined product demand by a factor of 2:1. New capabilities in the Middle East and Asia are the major driver of this mismatch. But any demand projections made before 2020 have now been summarily torn up, following the collapse in refined product demand due to coronavirus lockdowns and significant uncertainty over whether or if requirements will return to pre-pandemic levels. Refinery throughput reductions have been substantial globally in 2020 but have varied by region. In the US, refinery utilisation rates dropped as low as 68pc in April before recover
Also in this section
24 December 2025
As activity in the US Gulf has stagnated at a lower level, the government is taking steps to encourage fresh exploration and bolster field development work
23 December 2025
The new government has brought stability and security to the country, with the door now open to international investment
23 December 2025
A third wave of LNG supply is coming, and with it a likely oversupply of the fuel by 2028
22 December 2025
Weakening climate resolve in the developed world and rapidly growing demand in developing countries means peak oil is still a long way away
