China's refining boom fades and brings fears of overcapacity
Slowing oil demand growth, a changing economy and stricter environmental standards are ushering in a new era for refiners
Over the last decade, it seemed China couldn't build oil refineries fast enough. As double-digit economic growth fuelled a rapid rise in oil consumption, China's major state-owned oil companies and independent refiners went on an unprecedented building spree. Refiners added around 5.5 million barrels a day (b/d) of new oil processing capacity lifting the country's total oil refining capacity to more than 12m b/d, making it easily the world's second largest refiner behind the US. Now, though, China's economy is cooling, oil demand growth is slowing with it and concerns are mounting among refiners that the sector faces a new problem: overcapacity. Refiners worry severe overcapacity could lead
Also in this section
16 April 2026
Demand for oil is falling because supply cannot meet it, not because it is no longer required
16 April 2026
The continent has an immediate opportunity to make the most of its energy resources by capturing gas that is currently slipping away
15 April 2026
The continent is seeing political pushback to climate plans, corporate reassessment of transition goals and rising supply risk in a fractured global order
15 April 2026
The Middle East energy crisis may turn out to be pivotal to the industry’s long-term expansion, but significant challenges still stand in its way
