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
23 January 2026
A strategic pivot away from Russian crude in recent weeks tees up the possibility of improved US-India trade relations
23 January 2026
The signing of a deal with a TotalEnergies-led consortium to explore for gas in a block adjoining Israel’s maritime area may breathe new life into the country’s gas ambitions
22 January 2026
As Saudi Arabia pushes mining as a new pillar of its economy, Saudi Aramco is positioning itself at the intersection of hydrocarbons, minerals and industrial policy
22 January 2026
New long-term deal is latest addition to country’s rapidly evolving supply portfolio as it eyes role as regional gas hub
