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BP Cancels Refinery Project

|Includes: BP p.l.c. (BP)

It had to happen, but nobody wants to be the one to admit it, we just don’t need a lot of new refineries. Thankfully BP is man enough to face the facts.

BP and Irving Oil announced today they will not be moving forward at this time with the proposed second refinery in Saint John, New Brunswick, as a result of global economic and industry conditions.

Demand for refined products is weak, and the future is uncertain. Anyone wanting more refining capacity can buy it much cheaper.

I expect to see a steady trickle of such stories hitting the news over the coming couple of years, as well as consolidation in the sector.

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