Not so long ago, there were concerns that the world needed more oil refineries.
The shortage was said to be so acute that in the United States, George W. Bush even offered the industry old military bases as sites.
Now, the business is facing a rather different challenge.
Oil demand has plunged because of the recession, margins have been squeezed and the industry is in a tailspin. So much so that big oil companies seem unable to sell or close loss-making plants quickly enough.
Of Britain’s nine refineries, one has closed, another is up for sale and there are questions over the future of two others, including Chevron’s plant at Pembroke.
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In Europe the industry faces particular challenges. Processing crude into petrol, diesel and other oil products is a dirty and energy-intensive business, which pumps out millions of tonnes of CO2. Unsurprisingly, it is on the frontline of government efforts to “decarbonise” Europe’s economy.
Copenhagen may have failed to deliver agreement on emissions, but in Europe the threat of stringent carbon regulation remains very real — another reason why companies will be reluctant to invest further in UK plants.
For a global company such as Chevron, which wants to slim down its worldwide refining operation, why invest in Pembroke when you can focus on a plant in the Middle East or North Africa that is likely to be free of carbon costs for the foreseeable future?
With the demise of the North Sea as an important oil-producing region, it is a strategy that also offers the chance to be closer to your own oil production facilities.
It is a real problem for the industry in Britain — and, sadly, one that will do little to cut carbon emissions.