VaroPreem Chief Executive Says European Oil Refining Is Critical Infrastructure
VaroPreem CEO Dev Sanyal told global leaders in Davos that European oil refining must be seen as critical infrastructure as the sector faces consolidation.
洞察:
dev sanyal, the chief executive of VaroPreem, addressed participants at the World Economic Forum in Davos, Switzerland 
CHon January 21, 2026. He argued that European oil refining infrastructure should be designated as critical infrastructure during a period of intense sector consolidation. This consolidation is primarily the result of facility closures spanning several decades and rising competition from modern refineries in Asia and the Middle East. Sanyal suggested that smaller refining firms will likely be forced to divest their assets because they lack the balance sheet strength to maintain them.
CHon January 21, 2026. He argued that European oil refining infrastructure should be designated as critical infrastructure during a period of intense sector consolidation. This consolidation is primarily the result of facility closures spanning several decades and rising competition from modern refineries in Asia and the Middle East. Sanyal suggested that smaller refining firms will likely be forced to divest their assets because they lack the balance sheet strength to maintain them.The structural challenges facing the industry are rooted in long-term capacity erosion. Europe has not seen the construction of a major new refinery since 1975, and dozens of facilities have been shuttered over the past 30 years as European oil production declined. Newer plants in China, India, and the Middle East currently hold a significant competitive edge over these older European sites. Consequently, many oil majors are choosing to divest their refining assets to redirect capital into upstream developments.
