Here is update forecasting more EU Refineries closing mostly due to US competitive plants. The US position and diesel exports are probably overstated based on Shale crude discount price that has largely disappeared already from rail moves eliminating the Cushing glut and WTI discounts (along with Shale crude trapped there).
But there is little doubt that several small refineries in Europe that are over environmentally regulated and neither complex or competitive will continue to be closed. A lot of the capacity for EU region is more likely to pass to East EU and Russian plants (see post coking.com Energy – Flood Russian Diesel hits EU refiners) and also from Imports from China and India. It is true that US recent exports have cut drastically into these countries exports for Europe.
As they say doesn’t matter if the cup hits the hammer or hammer hits cup ….. its still very bad for the cup (Europe Refineries in this case). Since it is unlikely European Over-regulated environmental requirements will be relaxed – even without Kyoto Treaty driver, the path Europe is on for closure will be similar to the ones being taken by its US understudies on the East and West coast of the US.
Regards
