A Glut of Refineries Is the Oil Industry’s Next Problem
New capacity in the developing world is making European plants that turn oil into gasoline and other products obsolete
By Rochelle Toplensky: Sept. 3, 2020 5:03 am ET
This year’s oil glut is already receding. It is a shame that can’t be said of the global glut of oil refineries, which is only getting worse.
Europe in particular has long had too many oil refineries, but the pandemic-induced fall in energy demand has ramped up pressure to resolve the problem. For the region’s big oil producers—already reeling after a flood of excess oil pushed some prices below zero in April—a few aging assets are likely in line for a makeover. Others could be destined for the scrap heap.