Oil refineries play a key role in transforming crude oil into essential power sources that people need for their daily lives. As of 2024, there were 825 operational crude oil refineries in the world. According to the latest information from GlobalData's refinery database, this figure is expected to grow by 181 units between 2024 and 2030.
Petroleum refineries are complex facilities that convert crude oil into petroleum products for use as fuel for transportation, heating, paving roads, generating electricity, and making chemicals. Big oil refineries can process hundreds of thousands of oil barrels in a day.
Oil refining is a crucial step in the energy supply chain that affects consumers' eventual price at the pump. According to the US Energy Information Administration, global demand for liquid fuels is set to increase by nearly 20 million bpd by 2050, from 101 million to more than 120 million bpd.
The 181 new refineries are expected to add 20.75 million barrels per day of crude distillation unit (CDU) capacity in the world. Despite continued demand for liquid fuels, the US and Europe have scaled back on oil refining amid a government-led energy transition.
Energy consultancy Wood Mackenzie found that more than a fifth of global oil refining capacity is at risk of closure as the pressure to reduce carbon emissions mounts. Meanwhile, the Middle East, Asia, and South America are expected to boost their oil refining capacities.
