China has long been the world's biggest energy consumer, and now it is about to become the leader in the global refining market. The coronavirus crisis has caused a significant shift in the global refining industry, thus contributing to China’s success. By contrast, oil refineries in the US and Europe are struggling to cope with the economic damage inflicted by the pandemic. Besides, in these regions, the authorities are advocating the policy of smooth transition away from fossil fuels. Asia, however, has not yet reached its peak of oil consumption. The demand for plastic and fuel is steadily growing there, especially in China. The focus on green energy dims the long-term outlook for oil demand in the US and Europe. For instance, one of the Royal Dutch Shell refineries has been shut down in Louisiana, US. At the same time, Rongsheng Petrochemical has launched a large-scale refining unit in Zhejiang province in China. It is reported that there are at least three more refineries underway. The processing capacity of these four projects will total 1.2 million barrels per day. By the way, this is equal to the UK’s entire processing volumes. “China is going to put another million barrels a day or more on the table in the next few years,” Steve Sawyer, director of refining at industry consultant Facts Global Energy, said in an interview. “China will overtake the US probably in the next year or two,” he added.
