A study by an energy consultancy says that US oil refineries could be overwhelmed by the country’s rapidly burgeoning shale output, according to Reuters.
The UK-based global consultant Wood Mackenzie says in the report released on Monday that US refining capacity is not matching the pace of shale production and that by the year 2023 domestic refineries will be capable of absorbing just 25% of the expected 4 million barrels per day (bpd) of additional production.
That means three quarters of the volume of additional crude and ultra light oil would have to be shipped to foreign customers, mainly refineries in Europe.
One reason US processing capacity is not expanding fast enough is believed to be a forecasted drop in demand for gasoline.
