China will become the leader in the global oil refining market according to the forecast of the International Energy Agency. Currently, China is building four new oil refineries with a total capacity of 1.2 million barrels per day. However, the increase in capacity is mainly related to the needs of the domestic market. The demand for oil in China is growing despite a strong reduction in oil production and processing due to the coronavirus in the world. Therefore, there is no need to expect significant changes in the industry for the whole world.
It is obvious that China will take the place of the United States, which for over a hundred years ranked first among all other countries. The US is closing its refineries one by one. No new factories have been built for over 40 years. The main reason why the United States does not invest in oil refining is ecology. China is less demanding on environmental compliance. Of course, the development of renewable energy sources is reducing the share of traditional non-ecological sources even in China. However, the main focus of this country is shifted to petrochemicals (plastics). This strategy is more attractive in the long term.