ABSTRACT
The business models employed at refineries, company classifications, and US and world refining capacity trends are covered. Refiners require cash and credit to operate, which are obtained from both internal and external financing. Refiners comprise a diverse group made up of integrated players with global production and petrochemical operations to independents that are active only in downstream activities in regional markets. There are four types of firms that own and operate refining capacity: integrated oil companies, national oil companies, independent refiners, and joint ventures. The vast majority of US refining capacity is owned by publicly traded companies. Majors and national oil companies refine because it serves as a home for the oil that they produce and helps smooth out volatile cash flows from the upstream side of the business. Asia dominates refinery investment and the Middle East has been actively building refineries to displace product imports and to transform into a refined product exporter.
