Policy must change if EU member states are to create a stable future for the oil refining industry. These were the words of the UK Petroleum Industry Association which claims major challenges face the oil refining sector in the UK and Europe.
Speaking yesterday in Amsterdam Chris Hunt, Director General of UKPIA said: “If the governments of Member States are sincere in wanting a robust European refining industry that continues to deliver quality employment, energy supply resilience and feedstocks… they must be proactive in developing policy that creates a level playing field for this vital energy sector against its global competitors.”
The International Energy Agency forecasts that oil will continue to play a major part in meeting the energy needs of the world to 2035 and beyond.
However, the refining sector faces challenging conditions, through a combination of low returns, investment requirements to meet environmental standards and product specifications and increased competition from Asia, claims UKPIA.