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Consumption of petroleum-based refined products is declining due to a host of factors including increased renewable diesel (RD) usage, slowing population growth, electric vehicle (EV) penetration and fuel efficiency improvements, just to name a few, but thats only half the story.
Downstream, Aramco made progress in capital projects such as the construction of the refinery-integrated petrochemical steam cracker being developed by S-OIL, the Amiral expansion at the SATORP refinery, and other projects.
That was formed in 1977 under the name National Nigeria Petroleum Company. For many, stealing crude oil from the pipelines and processing it at one of the many illegal refineries in the region is a means of earning a living. The government has been fighting the illicit refineries for years.
Citgo Petroleum Corp., In what may be considered a warning shot to overzealous federal prosecutors looking to obtain criminal convictions under the Clean Air Act (“CAA”) or the Migratory Bird Treaty Act (“MBTA”), the Court of Appeals reversed criminal convictions against Citgo related to violations of both Acts at its Corpus Christi refinery.
Resources across energy and mining could see substantial downstream effects. In both global and local concentration, the transition costs of shifting suppliers, combined with some downstream ripple effects, might be profound. These effects together entrench dependency among downstream buyers.
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