Investment in US refineries is on the upswing due to increased profitability. Driven by higher oil prices, rising demand and years of underinvestment, US refining margins remain healthy. According to Wood Mackenzie, US demand for gas is forecasted to outpace supply over the next three years due, in part, to shutdowns of refineries, as upgrades are made. The US accounts for approximately 20% of the world’s gas refining capacity and for 100 of the 600 global refinery projects that Wood MacKenzie follows. Of the US projects, over 40% are related to quality compliance and 60% are related to upgrades or new capacity. However, by 2010, when the US is estimated to have a refining capacity of 1.1 million barrels per day, capacity is expected to have caught up to demand, slowing market growth.
Source: Hydrocarbon Processing