Crisis hits refinery sector in Europe - Hurriyet Daily
European refineries are facing closures due to poor demand, a result of slow growth and the euro crisis, according to an oil professional. Meanwhile Turkey and the Middle East are seeking ways to increase their production capacities.
The ongoing European economic crisis has paved the way for a significant decline in oil products in debt-hit European countries. Turkey is likely to attract more investments both in refinery and storage facilities as European plants close, the executive of a global energy company said.
‘Many refineries will close in Europe due to a slow in demand for oil products,’ said Mark Lewis, managing director of London FACTS Global Energy Group. The slowdown in European economic growth is causing a decline in demand in oil products and if the trend continues, eastern countries — including Turkey — are likely to divert the route of the oil products from west to the east.
The timing, location and pace of future refinery closures will have an important impact on European storage requirements, Lewis said. ‘Turkey may soon play a crucial role in regional oil and gas supply.’