Regional oil refineries should continue to expand their output to meet a worldwide shortage expected to last at least two more years, a Bahraini official has stated.

National Oil and Gas Authority chairman Dr Abdulhussain Mirza said Bapco and other companies in the region stand to benefit from raising their output and even building more refineries to meet this demand.
“There is currently a shortage in supply of oil products because companies all over the world have not been investing in building many new refineries,” he said.
“In the US, for example, there hasn't been a new refinery built in the last 29 years, although companies have invested in improving productivity.
“The reason is that profit margins in the industry have been traditionally low, which discouraged further investment in the sector.
But with the higher prices due to the current shortage, it’s beginning to make good business sense again."
However, he cautioned that companies should tread carefully to avoid increasing output so much that margins would again begin to drop. “Customers may also be lost if prices become too high because they will begin looking at alternative energy sources,” said Mr Mirza. He was speaking at the opening of the 5th Middle East International Refining and Petrochemicals Exhibition.