Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (9946)	2/13/2010 10:54:02 PM
From: Wharf Rat	Read Replies (1) \| Respond to of 24235

Global shift sees Europe oil refineries on the block Published on Sat, Feb 13, 2010 at 10:20 Asian refiners want to take advantage of the crisis in European oil refining to buy up capacity from the majors, battered by 15 year-low margins, and shift the power centre of the industry to state-run firms. Europe's BP and Royal Dutch Shell reported billions of dollars of losses from their oil refining business in the fourth quarter 2009. Shell is looking to divest 15% of its global refining assets. US major Chevron also plans to close some of its refineries, but has not yet said where. Pain for some is gain for others. Chinese and Indian companies are looking to buy in Europe. "They are doing it to get access to the local market," said Aileen Jamieson, downstream research manager with consultants Wood Mackenzie. "It is not strictly for commercial reasons as we do not foresee recovery in European margins in the medium-to-long term." India's Essar Oil has been in talks with Shell over its assets in Germany and Britain. PetroChina has been negotiating to buy the Grangemouth refinery in Scotland, formally BP's flagship British refinery, from chemicals group Ineos. A Chinese official told Reuters under condition of anonymity that getting a foothold in Europe would provide his company with an export outlet of diesel from Asia across the Pacific, a basement to export gasoline to the United States across the Atlantic and some access to the North Sea crude oil market. The Grangemouth refinery is directly connected to the pipeline system of Forties crude, which is one of the four key North Sea streams used as a global price benchmark. STATE FIRMS "Initiative in the refining sector is moving from the traditional international oil companies and independent refiners to semi-state and national oil companies (NOC)," Energy Market Consultants Ltd. said. Leading the investment in new refining capacity are upstream giants Saudi Arabia's Aramco and other state run firms in the Middle East Gulf, Brazil's Petrobras, Venezuela's PDVSA and the major Chinese refiners, the consultancy said. When many of new refineries supported by state funds come on stream in the Middle East around 2013-2017, the region will become the main oil product exporter. Until then, Russia will continue to export the largest volume of oil products, it said. The International Energy Agency (IEA) expects the Middle East will account for 17 percent, or 1.5 million barrels per day, of global new crude processing capacity of 8.7 million bpd to be on stream between 2008 and 2014. Most of it will be export-oriented. That is an opportunity that has already attracted the same companies that are slimming their European operations. Total and Aramco are building the Jubail refinery in Saudi Arabia, while the major is considering a shutdown of the Dunkirk plant in its home market France and said on Thursday more refinery closure would necessary in OECD countries. Much of the exports from these joint ventures will come back to the European diesel market. Europe has chronic shortage of diesel and oversupply of gasoline due to the growing popularity of diesel cars at the expense of gasoline vihchles. WoodMackenzie estimate Europe's diesel imports will rise to 900,000 bpd by the end of 2010 and remain at the same level for next five years, compared with 500,000 bpd in 2008. moneycontrol.com