Oil Production and Refining Up in 2017

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The total annual production for crude oil and refinery feedstocks for the 35-country Organisation for Economic Co-operation and Development (OECD) rose 2.6% last year compared to 2016.

The growth was led by the OECD Americas, which was up 3.5%, but production decreased in OECD Asia Oceania by almost 9% and by slightly more than 1% in OECD Europe according to data from Key Oil Trends 2017, from the International Energy Agency (IEA). The OECD Americas was responsible for 83% of the crude oil and NGL produced within the total OECD. Over half the total OECD production came from the U.S. alone, which hit a new production record in 2017.

Europe's production drop was led by Norway (-0.8%) and the U.K. (-2%), but Italy's production recovered by 8.6% as the Val d'Agri field restarted production. The large drop in OECD Asia Oceania was primarily due to Australia, where production fell by 9.6% or 1.5 million metric tonnes (Mt).

Despite the impact of Hurricane Harvey in August 2017, the U.S. experienced the highest growth in absolute terms, increasing production by 4.7% or 25 Mt. Canadian production also grew (7.8%) on an annual basis, partially due to the recovery from the 2016 wildfires in Alberta. Mexico, however, experienced the largest production decline of almost 10% among all OECD countries.

On the refining front, refinery gross output of total products within the OECD increased by 1.2% or 23.2 Mt in 2017 "with all OECD regions contributing to this growth," the IEA noted. OECD Europe's output grew almost 2% despite the fire incidents at the Pernis refinery in the Netherlands and the Leuna refinery in Germany. The only product category experiencing a decline was total gasoline, which fell by 1.2% in the region. For additional information, see August 2, 2017, article - Fire and Acid Leak Shuts Europe's Largest Refinery.

Growth in the OECD Americas was less than 1%, again driven by the U.S., which saw a 1.4% rise in absolute terms, followed by Canada (6.4%). Mexico's output fell by 19.0%, thanks in large part to the fire incident at the Salina Cruz refinery. Chile's output remained relatively flat, rising just 0.3%.

Korea drove most of the modest 0.8% refining growth in OECD Asia, with output up 5.2%, especially of naphtha, which jumped increased by 15.7%. Japan's output fell by 2.5%, due primarily to a 15.9% decline in residual fuel oil output. Overall, the OECD continued to be a net exporter of refined products with exports increasing by 5.4% in 2017 compared to 2016. Exports of crude oil, NGL and feedstocks increased by 10.3% in 2017, with the largest volumes destined for the United States, mainly from Canada and the Far East.

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. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.