Released May 05, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--A more challenging time is ahead for the global Petroleum Refining Industry, as the world tilts toward energy sustainability, Shaheen Chohan, Industrial Info's vice president of research for Global Analytics, said during a "Thought for the Day" video.
Click on the image at right to see Shaheen's "Thought for the Day" video, the first in a series that delves into the status of today's global energy industry.
The world has seen energy transitions in the past, driven by various domestic resource advantages, "but none have really been driven (by) an overwhelming societal shift in behaviors such as we're seeing today," Chohan said.
The shift toward sustainability "is really gaining tremendous momentum off the back of what were previously very top-line global level emissions targets," he continued.
The COVID-19 pandemic has "hastened and brought forward" the consequences of the energy transition for refiners, Chohan said, so that there is an even more seismic impact on the industry.
"Yes, we have seen more demand destruction for refined products; we know that (demand) will come back to pre-COVID levels, but this return may now take longer and demand growth may be shallower, all at the time when there is a lot more refining capacity that is still being developed globally and waiting in the wings, and that will add to what are already well-stocked markets," Chohan continued.
"So, the big question is, will the projects still at the early stages of planning all move forward?"
Industrial Info's researchers are tracking $585 billion in refining projects that have a kickoff in the next 24 months, he noted.
The situation could lead to a substantial adjustment in the industry's capital spending pipeline, and the potential for greater levels of project fallout.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The world has seen energy transitions in the past, driven by various domestic resource advantages, "but none have really been driven (by) an overwhelming societal shift in behaviors such as we're seeing today," Chohan said.
The shift toward sustainability "is really gaining tremendous momentum off the back of what were previously very top-line global level emissions targets," he continued.
The COVID-19 pandemic has "hastened and brought forward" the consequences of the energy transition for refiners, Chohan said, so that there is an even more seismic impact on the industry.
"Yes, we have seen more demand destruction for refined products; we know that (demand) will come back to pre-COVID levels, but this return may now take longer and demand growth may be shallower, all at the time when there is a lot more refining capacity that is still being developed globally and waiting in the wings, and that will add to what are already well-stocked markets," Chohan continued.
"So, the big question is, will the projects still at the early stages of planning all move forward?"
Industrial Info's researchers are tracking $585 billion in refining projects that have a kickoff in the next 24 months, he noted.
The situation could lead to a substantial adjustment in the industry's capital spending pipeline, and the potential for greater levels of project fallout.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
