London, United Kingdom (PressExposure) December 03, 2009 -- The global refining industry is witnessing a slump following the global economic downturn after a high return period in the past few years. Uncertain product demand due to the global economic downturn, decreasing refinery margins and a surplus refining capacity are having a combined negative effect on the profitability of refining operations. Due to this, major integrated oil companies with significant refining operations have seen a decline in their revenues from the previous year. These trends will continue to cast a shadow of uncertainty over the future of refinery margins thereby compelling integrated companies to divest their non-profitable assets to fund other businesses.
The global refining industry witnessed a major change in market dynamics in 2008. The refining industry during the period from 2003 to mid 2008 has changed from a low return industry to a high return industry. The surge in petroleum product demand in this period, especially in developing nations, lack of refining capacity and relatively high crude oil prices were the reasons for its turnaround. The trend continued through the first half of 2008 but the economic slowdown has severely impacted the refining sector since then.
This analysis was taken from a research paper published by GlobalData, to download the full Research Paper for free, click below:
Access the latest Oil and Gas Refining analysis for free at http://www.ResearchViews.com
ResearchViews is your number one portal for industry related news, research, analysis and deals data. ResearchViews offers up to the minute content produced by an expert team of industry analysts.
All content on the site is free to view and allows users to keep up to date with the latest developments in their chosen industry. Free daily and weekly newsletters provide a snapshot of the major issues affecting the industry. The site also features a research store, providing the user with access to premium business intelligence from some of the world's leading market research publishers.