Around 42 per cent of North America’s total crude oil refinery capacity went through either planned or unplanned maintenance in 2021, with bad weather conditions accounting for much of the unplanned maintenance, according to GlobalData.

The leading data and analytics company indicated that 10,210 thousand barrels per day (mbd) underwent either planned or unplanned maintenance— the highest worldwide. However, this is far below the number of planned and unplanned maintenance that occurred in 2020.

GlobalData’s report, ‘Global Crude Oil Refinery Maintenance Review, 2021– Analysis by Major Units, PADD Regions and Operator’, highlighted that North America had 4,348 mbd of refining capacity under planned maintenance and 7,443 mbd of refining capacity under unplanned maintenance in 2021.

Ennelli Sudarshini, Oil and Gas Analyst at GlobalData, commented:

“Thirty of the refineries in North America required unplanned maintenance in 2021, all of which were in the US and most due to bad weather conditions such as fires, explosions, and power outages. The US can continue to witness these unplanned shutdowns in 2022, especially in the US Gulf Coast, if storms and cold weather conditions continues to reoccur.”
Enneli Sudarshini, Oil and Gas Analyst, GlobalData

Comparison Among Regional Maintenance Figures

Compared to other regions, GlobalData noted that North America had the highest crude oil refinery capacity under maintenance (both planned and unplanned) globally. North America, this time around occupied the first position globally, followed by Asia, with 8,838 mbd; and South America, with 2,587 mbd.

“In Asia, 8,838 mbd of crude oil refining capacity required planned and unplanned maintenance in 2021. In this region, the Ulsan and Yeosu refineries in South Korea, and the Huizhou I in China, had the most planned maintenance globally, at 840 mbd, 800 mbd and 440 mbd, respectively. In terms of unplanned maintenance, the Negishi refinery in Japan required 270 mbd of refining capacity maintenance.”
Enneli Sudarshini, Oil and Gas Analyst, Global Data

Furthermore, South America occupied the third position globally, with 2,587 mbd of refining capacity under planned and unplanned maintenance in 2021. The Sao Francisco do Conde refinery in the Brazil had the highest capacity under planned maintenance, with 279 mbd, while the San Jose dos Campos refinery in Brazil and Barrancabaermeja-Santander in Colombia followed, with capacities of 252 mbd and 250 mbd, respectively.

“The main reasons for unplanned maintenance in South America for 2021 were power outages and repairs/equipment malfunction. As such, we expect these factors will continue to play a significant role in forcing unplanned maintenance in this region.”
Enneli Sudarshini, Oil and Gas Analyst, Global Data

While 2021 had its own peculiar problems warranting high unplanned maintenance, the situation for 2020 were triggered by the COVID-19 pandemic. During the period, demand for refined crude slumped, compelling refiners to suspend operations as a result: Asia came top among regions with high crude oil refinery maintenance (11,524 mbd), followed by North America (11,183 mbd), Europe (5,358 mbd) and the Middle East (1,945 mbd).

That said, if weather conditions continue to be a problem this year, coupled with subdued crude output for refinery plants, this may trigger another series of high crude refinery maintenance in the year.