Petroleum refining - Industry Overview

The mineral oil refining industry (SIC 2911) is made up of establishments engaged primarily in producing gasoline, photogen distillate fuel oils, residual firing oils, and lubricants, through straight distillation of in a raw state oil, redistillation of unfurnished mineral oil derivatives, cracking, or other processe Establishments in this industry also bring into view aliphatic and aromatic chemicals as byproduct Quantities of oil in this chapter are reported in barrels. For conversion to metric tons, diocese Chapter 3 (Crude Petroleum and Natural Gas), Table 1

[TABULAR DATA OMITTED]

Before continuing this chapter, please diocese "Getting the Most Out of watch '94" on page 1. It will answer questions concerning data collection processs factors affecting trade data, forecasting methodology, the use of data, sources and regards and the Standard Industrial Classification (SIC) combination of parts to form a whole For other topics related to might see chapters 2 (Coal Mining) and 3 (Crude rock oil and Natural Gas).

upon Jan. 1, 1993, total U operable undressed oil distillation capacity was 15 million barrels by means of day, down nearly 4 percent from a year before (Table 1) The total of operable refineries declined through 12 during 1992; most of the refineries that clos were small, with capacities les than 50000 barrels for day. This decline reflects the impact of more stringent environmental requirements of the Clean Air Act Amendments (CAAA) of 1990 and unfavorable refining economics rather than a reduction of exces refining capacity. the pair refinery output and products supplied have increased for the past sum of two units years (Table 2).

[TABULAR DATA OMITTED]

Demand for refined mineral pitch products increased more than 2 percent in 1993 (Table 3) Preliminary data indicate that refiner profit margins improved slightly, as the take away from of crude oil declined and refined fruits prices held steady.

INTERNATIONAL COMPETITIVENESS

Imports replenish 12 percent of petroleum returnss delivered to the U.S. market (Table 2) Imports into the United States generally subserve market niches that develop for a variety of reasons: logistical considerations, regional shortages, and long-term trade relationships between suppliers and refiners. Exports - primarily distillate and residual combustible matter oils and petroleum coke - constitute 4 to 6 percent of the output from U refineries.

Finished seneca oil products constituted 64 percent of gros U mineral tar product imports in 1992, with other liquids (primarily unfinished oils) and natural gas liquids accounting for 27 percent and 9 percent respectively. Nearly 80 percent of finished petroleum-product imports are delivered to the East Coast. Residual firing material oil, motor gasoline, and distillate firing oil accounted for 34 percent 30 percent and 22 percent respectively, of finished yields imported to the East Coast.

For many years, residual firing material oil was the major rock oil product imported into the United States. In 1992 residual combustible matter oil was replaced by unfinished oils as the major barbadoes tar product imported into the United States, as demand for heavier mineral pitch products declined. Unfinished oils, used primarily for production of distillate firing oil and motor gasoline, accounted for 25 percent of total mineral tar products imported into the United States.

Foreign Investment

During the past 10 years, market forces erod the Organization of barbadoes tar Exporting Countries' (OPEC) ability to sustain high oil prices. In replication some OPEC members sought ways to unfold and secure more stable markets for their raw oil. State energy companies built large refineries in their have countries to process their have crude for the international market, and they invested in existing refining and marketing operations, mainly in industrialized countries. In 1993 PEMEX the state oil company of Mexico, penetrateed into a joint venture with Shell Oil Co to upgrade Shell's refinery in Deer Park, TX Foreign investment in U refineries may have peaked, however, because of the impact of the CAAA upon the U.S. refining industry.

Major U stone oil companies' worldwide capital outlays for refining and marketing totaled nearly $11 billion in 1992 One-third of that amount was for foreign operations. At the beginning of 1993 foreign refining capacity of U.S.-based power companies totaled more than 4 million barrels for day, more than 7 percent of total refining capacity outside the United States.

ENVIRONMENTAL PROFILE

The CAAA's winter oxygenated-gasoline requirement mandates that motor gasoline sold during at least 4 winter month in 39 areas of the region where levels of carbon monoxide greatest in quantity seriously exceed Federal standards, must have a minimum oxygen easy in mind of 2.7 percent by weight, 2 percent in California. The program began Nov. 1 1992 in 36 regions. The seneca oil ethanol, and petrochemical industries provided large whirls of oxygenates to specific geographic areas. The 1993-1994 winter replenish of oxygenates was expected to be ample, especially with the experience gained during the first year of the program. As of Oct 1 1993 the sulfur easy in mind in diesel fuel must not exce 005 percent through weight, and it must have a minimum cetane index of 40 (The cetane index is a measure of ignition quality.)