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May 22, 2023 · The past two years saw a series of unprecedented events disrupting demand and supply patterns and leading to an extremely tight global oil market in 2022. After a sharp collapse in oil demand due to the COVID-19 pandemic, a stronger-than-expected demand rebound came at a time when the refining industry was aggressively trimming its asset footprint.
Feb 8, 2024 · Some New Projects Were Delayed, and the New Refining Capacity Was Lower Than Expected. In 2021, the global new and expanded projects contributed a total of 530,000 barrels per day, much lower than the original forecast of 2.23 million barrels per day, mainly because of the pandemic and other factors that have delayed many new projects.
Jan 22, 2024 · Refining is part of the downstream sector, one of three main components of the oil and gas industry. The most commonly made product from one barrel of crude oil is motor fuel, or gasoline in ...
Sep 19, 2022 · Most refining-capacity reductions in recent years — in the U.S. and elsewhere — were driven by the same forces, namely, poor economics resulting from the pandemic-driven demand plunge in 2020 and 2021 as well as expectations that margins would take a long time to recover post-COVID.
- Crude oil price. The price of crude oil is the most important factor that drives production and investment in the oil and gas extraction sector. Chart 1 presents movements in two of the most relevant crude oil prices for Canada, the WTI and the Western Canadian Select (WCS) from January 2019 to February 2021.
- Production and employment. Chart 2 presents monthly production and employment in the oil and gas extraction industry and in all industries as a whole from January 2019 to April 2021.
- Crude oil and merchandise exports. The global value chain and, therefore, merchandise exports have been greatly affected by the pandemic because of declining demand.
- Capital expenditures. Capital expenditures in oil and gas extraction are highly related to crude oil price. Lower oil prices will drive down the profit level of oil and gas extraction and ultimately discourage investment in the industry, and this will affect its production capacity in the long term.
Jan 28, 2021 · Rig activity is expected to continue to rise but much of the recovery rate is dependent on oil prices and the industry’s willingness to spend on volume growth again. While there is a glimmer of hope in global crude production this year, the refining sector continues to battle challenges compounded by COVID-19, OPEC+ production cuts and new capacity additions.
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Why is the global oil market so tight in 2022?
Jun 29, 2022 · Operable atmospheric crude oil distillation capacity, our primary measure of refinery capacity in the United States, totaled 17.9 million barrels per calendar day as of January 1, 2022, down 1% from the beginning of 2021. According to our annual Refinery Capacity Report, 2021 was the second consecutive year of decreasing refinery capacity.
