Australia first now Norway. Dominos keep falling. For those saying demand hasn’t peaked what are your thoughts? Certainly it has peaked in parts of the world.
https://mobile.reuters.com/article/amp/idUSKBN2BV22Q
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Well, let’s face it - Norway is well on its way to being an electric vehicle fleet, with the rest of Scandinavia to follow suit. With rapidly declining sales volume of hydrocarbon fuel products, it’s not surprising that unfavourable economics indicate that the refinery would be closed.
Slagen might be 60 years old, as noted, but it is one of the cleanest, safest and best-maintained refineries in EM portfolio. Now to become an import terminal.
Contrary example is Baton Rouge refinery - 100 years old and a filthy belching mess less than a mile from Louisiana's State Capitol building. That might be a worst-case, but so it is.
I've had the opportunity to spend several weeks - summer and winter - in Tonsberg/Slagen.
Fortunately, this area in Norway has considerable and more beneficial economic engines in place.
So the refinery will not be missed.
Kids could play soccer on this site the minute it is shuttered.
I spent a few years in Baton Rouge, and wealthy enough to live miles away from the refinery.
The majority of folks living within blocks around the refinery are in poverty, of course.
Once this riverside facility is shuttered, I'd expect kids could have a playground there within a century, maybe. Not Chernobyl, but EM will have to get the lead out, at least.
Pricey shutdown. Whoa.
Just another part of the announced and well publicized strategy by EM to divest marginal and non-strategic assets, just like most of the Upstream assets in Norway. The refinery is 60 years old. No surprise or story here. Just EM executing its divestment strategy to focus on fewer assets and new opportunities. A positive development for the company and shareholders.
Gasoline and diesel is decreasing in Norway due to the rapid growth of electric vehichles.
OSLO (Reuters) - Exxon is considering whether to close down its Slagen oil refinery in Norway, which has a capacity to process 120,000 barrels of crude per day, turning the site into an import terminal, the U.S. energy major said on Thursday.
The refinery at Slagentangen near Toensberg in south-east Norway was built in 1961 and process crude oil from the North Sea, exporting about 60% of the output, according to Exxon.
t was too early to say when a final decision would be made, the company’s Esso unit in Norway said.
“In practise it means that we would stop producing oil products at the refinery and instead we will import them,” Esso spokeswoman Anne Fougner said.
“Refineries in Europe operate in an increasingly challenging market, characterized by falling demand and strong competition, leading to overcapacity in the market,” Esso said in a statement.
In Norway, a world leader in the adoption of electric cars, demand for road transportation fuels has decreased, the company noted.
Reporting by Nerijus Adomaitis, editing by Terje Solsvik
https://www.reuters.com/article/us-exxon-mobil-norway-idUSKBN2BV22Q