US EPA

8746599 

Journal Article 

News. Panorama 2004. Refining and petrochemicals 

Benazzi, E 

2004 

449 

57-62 

French; English 

Refining margins increased in the first half of 2003 after the year 2002 that experienced a strong decline in refining margins. In this context, the results of petroleum companies for 2002 were much lower than in 2001 and are better directed in 2003. With respect to petrochemicals, in 2002, the lack of demand and the increase in prices of raw materials led to a deterioration of the margins notably in Europe and the US. Taking into account the results of the first half of 2003, the improvement in the profitability of the petrochemicals sector is not to be expected before 2004. The increase and holding of petroleum prices at high levels (around $28/bbl), the drop in money markets, and armed intervention in Iraq have weighed on the world economy. The world prospects for 2004 are more optimistic (4.1%). The growth in the US is to amplify (3.9%), the euro zone to increase (from 0.5 to 1.9%), and China will maintain a high growth rate of 7.5%. However, the uncertainties in the future of Iraq and on the geopolitical stability of the ensemble of the Middle East, the vulnerability of the emerging economies that are heavily in debt, especially in Latin America, and the significant deficit in the US are also potential brakes to a resurgence of economic growth. In the context of a moderate economic expansion, the global demand for petroleum products only slightly increased in 2002 (0.5%) mainly in Asia that represented 75% of the growth. The world refining capacity increased 1% in 2002 to attain 83.9 million bpd and the rate of use of the refineries slightly decreased by 0.8 points vs. 2001. The refining capacities increased in all the world regions except for Eastern Europe. In the context of a moderate and unequally distributed geographical economic expansion, the world demand for petroleum products increased slightly in 2002 (0.5%). In 2003 and 2004, it is expected to be 1.4%/yr. Refineries limited their investments in 2002 but the expenses for catalysts and maintenance continued to increase to respond to the standards tied to the quality of petroleum products. The discussion of refining covers general development; development of supply and demand of petroleum; development of crude oil and petroleum product prices; development of refining margins; mergers and company results; world expenses of the refining industry; and standards and greenhouse gas emissions. The discussion of petrochemicals covers general development; company results; world expenses of the petrochemicals industry; and conclusion.