In 2015, the oil and gas industry has faced many challenges. In response to adverse conditions in the industry, oil companies have had to make some tough choices to survive the decline, which appears will continue throughout the year.
Making matters worse is the fact that the average age of U.S. refineries is 40 years, and some are almost 90 years old. The oldest still in operations is the American Refining Group, Inc. Pennsylvania Refinery, built in 1881, making it a whopping 134 years old!
Only one new refinery has been built in this century. Many are growing old and decrepit, and it takes serious maintenance and upgrades to keep them going – safely. With the current decline in the industry, oil companies must re-evaluate their plans to replace aging facilities.
Rather than build new refineries, many of the existing facilities will need to be kept operational a bit longer before being replaced. More retrofit projects, revamps and expansion projects will be needed for aging facilities to continue production.