New Heavy Residual Oil Rules May Shutter Japanese Refineries

Trade Minister Masayuki Naoshima is expecting Japan’s refiners to boost their runs of heavy residual oil, according to a July 6 report from Bloomberg. One analyst is quoted suggesting that nearly 800,000 barrels per day of refinery capacity may be shuttered rather than reconfigured with billions of dollars in new capital equipment to meet the new rules. That’s as much as 17% of the nation’s capacity, according to the report.