NEW YORK (TheStreet) -- The U.S. oil behemoth Exxon Mobil (XOM) revealed Wednesday that it has decided to invest more than $1 billion in its refinery in Antwerp, Belgium, even as others flee the continent's ailing refining sector.
That is because America's biggest oil company is eyeing a European revival several years down the road.
Exxon Mobil, whose shares closed Wednesday at $101.57, flat for the year to date, has said that it will install a new coker unit to its 320,000 barrels a day refinery that will convert residual oils into transportation fuels.
Meanwhile, new refineries currently under construction in the Middle East, Russia and India are targeting greater share of the market. According to the International Energy Agency's estimates, non-OECD nations will install 1.7 million barrels per day of additional capacity in the current year, which is higher than the agency's previous estimate of 1.5 million barrels per day. The shale gas boom in the U.S. and the new refining capacity in non-OECD countries will continue to exert downward pressure on Europe's refining margins.
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