Refining Markets in Latin America

With oil demand declining, the United States, previously the world’s largest oil product importer, has become the number one exporter. And Latin America – a region facing growing demand and a widening deficit of refining capacity – has become the main destination for US oil product exports. Workshop participants will discuss what these trends mean for energy policy in Latin America. To boost supply of refined oil products, Latin American countries should look at adding refining capacity to meet growing demand. Building new refineries can bring benefits in terms of energy security, improved trade balances, and investment and jobs for the local economy. However, Latin American refiners will struggle to compete with those in the US, which enjoy access to cheap natural gas to power their plants, discounted US crude because of oversupply, and existing infrastructure. Easing the US crude export ban would rebalance the market and make it easier for refiners in other countries to compete, but the outlook on this decision remains uncertain.

The Inter-American Dialogue will host a group of the industry’s leading experts for a workshop on refining markets in the Americas, part of our series on the impact of the North American oil boom on Latin America, in cooperation with the Inter-American Development Bank.

 

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