Oil refining capacity fell for first time in 30 years in 2021, IEA reports

Refinery closures outweighed new capacity in 2021, leading to a drop in global capacity for the first time in 30 years, the International Energy Agency said in its latest monthly report.

Global capacity fell by 730,000 bpd last year as close to 1.6 million bpd was shut or converted into bio-refineries and only 850,000 bpd new capacity came online.

For 2022 the IEA forecasts 1.2 million bpd of new additions, while runs will rise by 3.7 million bpd to 81.2 million bpd.

However, the reduced capacity last year led to improved refining margins, which “reached multi-year highs in Singapore and Europe at the end of 2021,” it has been reported.