Interactive ASB 2007OPEC flows of crude and refined oil map

The market volatility witnessed in recent months has been, to a large extent, the result of imbalance between the available refining capacity and the demand for petroleum products. Until the necessary investments are undertaken in the downstream sector of the industry, volatility is likely to remain a feature of the oil market. OPEC Member Countries, both on their own and in partnership with some international oil companies, have taken the initiative to pursue and invest in downstream projects, both inside and outside their countries. OPEC’s investments in the downstream, are part of its ongoing efforts to ease market volatility and to help prices to moderate toward levels consistent with healthy economic growth, particularly in the developing countries. However, these efforts will only be successful if they are met with similar efforts on the part of other producers and consumer countries.

In the downstream sector, OPEC has medium- and long-term plans consistent with its overall efforts to bring stability to the market. In more concrete terms, OPEC Member Countries are planning nearly a 50% increase in distillation and condensate splitter capacity, which would bring the combined capacity to 17.7 mb/d by the end of 2011 - a relatively short time span considering the usual lead times required for refinery projects. These projects will at times require willingness on the part of international oil companies to participate and, on the part of consuming nations, readiness to provide the necessary permissions to become operational.

To achieve these goals, OPEC is undertaking extensive expansion plans>>

OPEC Downstream Capacity Plans (mb/d)

OPEC Downstream Expansion Plans 2006-2011 (mb/d)