IEA : Global refinery capacity to outstrip demand by 2016

A new report published by the International Energy Agency (IEA) states that global refinery utilization rates will decline to 78% by 2016, down from 82% in 2006 – 2010.  The switch to alternative fuels and the economic downturn will reduce refinery capacity in mature Organization for Economic Co-operation and Development (OECD) markets, the report said. The report entitled “Medium Term Oil and Gas Markets” also predicts that global refinery capacity will grow by 9.6 million barrels per day from 2011 to 2016, in reaction to economic expansion in Asia.  This increase will outstrip global demand, it said. “China alone is expected to account for a third of global refinery capacity growth, or 3.3 million barrels a day,” the IEA report said.  The IEA forecasts that from 2011  to 2016, global demand will be higher for middle distillates. (June 16, 2011)