Golden Age of Refining To Continue
In the third in series of papers on oil refining trends, Booz Allen Hamilton wonders whether the decline in oil refining margins last fall was the begininning of a long-term cyclical decline or a temporary blip. Pointing to continuing growth in demand and limits on supply, Booz Allen remains bullish on margins for the next 3 to 5 years.
Volatility will remain high owing to limited spare capacity in the short term.
Expected refining margins are projected to gradually decline from the peak around $11 in late 2006 to around $7 by 2015. However, this remains above the $2-$5 range from 1996 to 2005.
Refining Trends: The Golden Age or The Eye of The Storm
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