Ten European Refineries Will Go Idle

Bloomberg is reporting:

Oil refiners in Europe will shut 10 percent of their plants this decade as fuel demand falls to a 19-year low.

Of the region’s 104 facilities, 10 will shut permanently by 2020 from France to Italy to the Czech Republic, a Bloomberg survey of six European refinery executives showed. Oil consumption is headed for a fifth year of declines to the lowest level since 1994, the International Energy Agency estimates. Two-thirds of European refineries lost money in 2011, ....

A 50 percent jump in three years in U.S. diesel exports coupled with waning demand for imports of European fuels, as well as two recessions in five years in the euro region, have curbed profit from oil products at companies from Italy’s Eni SpA to Royal Dutch Shell Plc.Refining margins dropped to $7 this month, from a peak of about $20 a barrel in 2008, according to data compiled by Bloomberg.

The losses are being compounded by the configuration of Europe’s refineries. Most of the plants, more than 50 percent of which were constructed in the wake of World War II, are geared toward gasoline production, though diesel now accounts for 75 percent of the region’s motor fuel needs. 

Times are a'changing. Did you notice that comment about US diesel exports?

Bottom line: seems like a huge headline, but shutting down 10 old refineries out of a total of 104 facilities between now and 2020 seems hardly noteworthy. Losing money, however, is something else.