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Wednesday, October 17, 2018


Consolidation among US refinery industry - Petroleum Intelligence Weekly

The top 10 US refiners have some 73% market share, up from 57% in 1997. Exxon Mobil has expanded refinery capacity by 0.03 mbd compared to the capacity held by Exxon plus Mobil in 1997 over this period, and has today the biggest share of 12%. Valero is the second biggest refiner with 11% share or 1.8 mbd. Phillips is the 3rd largest with a capacity of 1.71 mbd. Neither Valero nor Phillips were among the 10 largest in 1997 and are the refiners having expanded most.  BP, the largest refiner in 1997, is today 4th but has increased capacity by 0.12 mbd to 1.54 mbd. Shell is today 5th, up one position having increased capacity by 0.258 mbd to 1.132 mbd.

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Surge in Russia’s oil export  - Petroleum Intelligence Weekly

With the surge in exports, Russia’s oil export system is operating very close to full capacity. Pressures should ease late this year with the opening of the new Baltic Pipeline System, but the extra breathing space provided by the new line might not last long if output and exports keep rising at current rates. Semyon Vainshtok, President of state-owned national pipeline operator Transneft, estimates the country’s present export capacity at 2.8 mbd, including some 0.2 mbd of shipments to Ukraine and Belarus. The first 0.24 mbd phase of the Baltic Pipeline System will be commissioned in December opening up a new outlet to the Baltic Sea. Officials claim demand for capacity on the new line already exceeds availability, with crude producers having applied to ship more than the full 0.643 mbd capacity that the system will reach upon completion of the second phase of construction next year.

Russia’s crude oil exports were up by 4% in the first half of 2001, while crude output in the same period jumped 6.9%, reaching a hefty 6.8 mbd — the highest level in the past seven years. Crude oil exports in the first half were 2.59 mbd and the trend continued in July, with shipments of 2.69 mbd.

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US Refiners take most of the Iraqi crude- Petroleum Intelligence Weekly

At the same time as Washington renewed sanctions against Iran and Libya, US companies are showing few qualms about business relations with Mid east trouble spot, Iraq, with US refiners buying up virtually all available Iraqi crude. After Baghdad resumed exports on 10 July, the US was the destination for 90% of Iraq’s July exports, and the US will take an expected 80% in August. Last month, US imports from Iraq were 1.34 mbd, which could rise to 1.7 mbd in August, putting Iraq in position to rival Saudi Arabia as top crude supplier to the US. Of the 52 million bbl Iraq exported in the four weeks to Aug. 3, an estimated 47 million went to the US, most of it secured before the export outage began in June. Prices for Iraqi crude are set by the UN, based on proposals by Iraq’s selling arm Somo, and are more or less parallel to Arab Medium, a comparable Saudi Arabian crude. The suppliers to the US have not changed, with the large traders — Bayoil, Taurus, Vitol, Arcadia, and Crown — dominating the lifting.

First half 2001 Japanese crude oil imports on the same level as last year

Japanese crude oil imports averaged 4.38 mbd during the first half of 2001, which is nearly identical to the first half 2000 level of 4.37 mbd. Japanese crude oil imports have stayed on this level since 1999 falling from the record level of 4.72 mbd imported in 1998.

Whereas crude oil imports have slowed since 1998, oil products imports have increased. Although oil products imports for the first half of 2001 of 0.65 mbd are down on the 0.72 mbd level recorded in the same period last year, the underlying trend is upwards with oil products imports increasing year-on-year since 1998.

Please click here to view the development in Japanese oil imports

Oil demand to grow by less than 0.5 mbd in 2001, but demand to rebound to 0.8 mbd in 2002 - IEA

According to the 10 August 2001 Monthly Oil Market Report of the International Energy Agency (IEA), low industrial output and faltering consumer demand are expected to limit oil demand growth to under 0.5 mbd this year, total demand ending up at 76 mbd. IEA assumes that a turnaround in the US economy, now anticipated towards the end of this year, may cause demand growth to rebound to 0.8 mbd in 2002.

Iraq recommenced oil production on 10 July 2001 and exports resumed at just above 2 mbd. This production accounted for most of the July global oil supply increase of 1.4 mbd.

Please click here for ‘World oil supply and demand development’