U.S. & Canadian Petroleum Refining Industry Plans $72 Billion in Major Capital & Maintenance Project Spending

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Researched by Industrial Info Resources (Sugar Land, Texas). In a day and age of record high petroleum prices and the associated furor among both consumers and the government surrounding what the oil companies are doing with these profits, the oil companies have responded with future spending plans that boggle the mind. To date, Industrial Info is tracking over $72 billion worth of future capital and maintenance projects within the Petroleum Refining Industry in the United States and Canada.

Click on the image at right to view a chart showing the breakdown of Petroleum Refining Industry planned spending by market region.

Chief among the regions that will benefit from these planned expenditures is Western Canada. With its oil sands rich Northern Alberta region, the refiners in the area are pulling out all the stops to increase the exploitation of this vast resource. Close to 90 projects, representing future capital and maintenance investments of over $47 billion, over half of the total future investment planned by the industry as a whole, are being planned for Western Canada, primarily in Northern Alberta. Some examples of the projects driving spending within Canada are the proposed $4.3 billion Joslyn Creek bitumen upgrader in Alberta and the proposed $3.3 billion Voyageur phase I upgrader #3 addition, also in Alberta.

A distant second place is the Southwest region of the United States. Ranking first in total oil refineries in North America, this region traditionally spends billions of dollars annually on capital and maintenance projects. With oil prices as high as they are, the region is picking up the pace on capital and maintenance investment by allocating over $10 billion for future project spending. In the Southwest region, a quartet of proposed delayed coker unit additions, two in Texas, and one each in Oklahoma and Louisiana, with a total value of $1.5 billion are leading the spending charge.

The Rocky Mountains region and the Great Lakes region of the United States are almost tied for third place in total future investment. In the Rockies, oil refiners are currently planning almost 70 projects worth $3.5 billion, while the Great Lakes region is trailing by a very small margin with more active capital and maintenance projects, over 80, representing some $3.3 billion. The primary project leading the future spending boom in the Rockies is the proposed $2.5 billion grassroot crude oil refinery that has been in the planning stages for the state of Arizona for a number of years, while in the Great Lakes region one of the key projects driving future spending in that region is the proposed $450 million delayed coker unit addition in Indiana.

Whether it’s a multi-billion dollar project in Alberta or a $5 million maintenance turnaround in Michigan, the Petroleum Refining Industry is ramping up its spending efforts for the next few years. The response to the outcry over record profits has been resounding and rapid as refiners loosen their respective purse strings and dole out the dollars like they were candy to boost capital and maintenance investments all across Canada and the United States. While the effects of the majority of these projects may not be felt immediately at the pump, since projects of this nature often take years to develop, plan and construct, the public and the government should feel confident that the petroleum refiners are not just resting on their laurels and rolling around in piles of money cackling insanely at their newfound wealth. They are planning for the future.

For details on the projects analyzed in this report, contact Industrial Info’s Member Center at 1-800-762-3361.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.