Refining Crude Oil

As all the "short termers" i.e. people who focus on current inventories of crude oil, sell into the rally, we are looking long term. And nothing has changed other than the supply demand imbalance continues to be pushed further out.

As more production and refining capability comes on line in the next few months and years...demand growth for distillates and other products will be higher than new supply, refining margins will be strong for the next 20 years says a recent study. This study assumes 3.8% GDP growth and petroleum products increasing 1.7% per year reaching 115 million barrels per day by 2025, of which 70% will be used as transportation fuels.

The world would need to invest $300 billion in refining investments during this period....there simply is not enough engineers or contractors to meet this need!

Barkly seen here will be travelling for the next week checking out some of this demand internationally.