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STATISTICAL REPORT
2018
Editor: John Cooper Copyright © FuelsEurope Printed in Belgium - Designed by www.morris-chapman.com
STATISTICAL REPORT
2018Statistical Report 2018 5
Foreword
High quality, verified and reliable facts and figures Colour coding aims to help our readers browse
are essential to support economic and political effectively through the document. Each colour
analysis. For this purpose, FuelsEurope Statistical corresponds to a specific theme making browsing
Report 2018 aims at providing a comprehensive between subsections user-friendly. We hope that
set of statistics about the refining industry that you will find this Report useful.
can be used by all stakeholders.
• Oil & Energy
This 2018 edition contains the most up-to-date
information based on currently available data for • Oil Products
the sector. One should however note that some
• Prices & Margins
of the data is updated every 2 or 4 years.
• Refining
This includes global energy markets, oil products
demand and international trade flows, fuel • Marketing Infrastructures
specifications, prices and margins, the integration
with the petrochemical sector as well as the
environmental performance of the EU refining
industry.
John Cooper
Director General6 Statistical Report 2018
www.linkedin.com/company/fuelseurope www.twitter.com/FuelsEurope
www.youtube.com/fuelseurope www.fuelseurope.euOil & Energy - Statistical Report 2018 7
FIG.1 WORLDWIDE ENERGY CONSUMPTION
BY FUEL TYPE IN 2016
Source: BP Statistical Review of World Energy 2017
7% 3%
World
5%
European Union
33%
Oil consumption is measured in million tonnes;
other fuels in million tonnes of oil equivalent (Mtoe). WORLD:
28% 13 276 Mtoe
Mtoe
Unit: Million tonnes and million tonnes oil equivalent - Mtoe
5 000
24%
4 500 4 418
4 000
3 732
3 500 8%
3 204 5%
3 000
12%
2 500 37%
2 000 EU::
15% 1 642 Mtoe
1 500
1 000 910
613 592
386 420 24%
500
238 190 136
79
0
Oil Natural Coal Nuclear Hydro Renewables
gas energy electricity
Oil, natural gas, and coal remain the dominant source of energy The EU, unlike other major economies, has a higher share of
fuelling the global economy (together 85%). Oil remained the nuclear (11.6%), renewables and hydro (13.1%) in its energy mix.
main energy source globally. The overall share for renewables,
including hydro electricity, remains relatively small (10%). Note: Please note that due to rounding, figures may not add up
exactly to 100%.8 Statistical Report 2018 - Oil & Energy
FIG.2 WORLDWIDE ENERGY CONSUMPTION
BY REGION IN 2016
Source: BP Statistical Review of World Energy 2017
OIL COAL
24% OTHERS 20% USA 14% OTHERS 10% USA
6% EU-28
3% AFRICA
3% JAPAN
11% INDIA
2% RUSSIA
Unit: Mtoe
7% SOUTH
AND Total energy 14% EU-28 Total energy
CENTRAL 4 418 Mtoe 3 732 Mtoe
AMERICA
9% MIDDLE EAST 4% JAPAN
5% INDIA 3% RUSSIA
13% CHINA 51% CHINA
Global energy consumption grew by 1% in 2016.
NATURAL GAS EU-28 share of oil (14%) and natural gas (12%)
consumption remained at the same level. However,
25% OTHERS 22% USA the EU’s share of coal consumption decreased by
1% point (6%). As presented in figure 1, oil (37%)
and natural gas (24%) remain the main energy
source in the EU (61%). Coal is the main energy
source consumed in China and India and together
5% SOUTH these two countries are responsible for 62% of
AND global coal consumption.
CENTRAL Total energy 12% EU-28
AMERICA 3 204 Mtoe Note: Oil consumption is measured in million
tonnes; other fuels in million tonnes of oil
14% MIDDLE EAST 3% JAPAN equivalent (Mtoe).
Please note that due to rounding, figures
1% INDIA may not add up to exactly 100%.
6% CHINA 11% RUSSIAOil & Energy - Statistical Report 2018 9
FIG.3 WORLDWIDE CRUDE OIL MOVEMENT
IN 2016
Source: BP Statistical Review of World Energy 2017
37.6 266.7
24.5
27.3
67.4
20.9 54.8
188.6
153.3 160.8
42.1 34.6 24.4 67.0 199.1
49.3
46.5
Unit: Million tonnes per year
33.2 89.5 58.4 24.4
153.8 41.3
69.9 89.4
33.5 270.8
21.8 70.7
42.3
22.4
28.9
60.1
27.7
USA 54.2
CANADA
MEXICO
SOUTH AND CENTRAL AMERICA
EUROPE & EURASIA
Crude oil is an internationally traded commodity with trade flows
MIDDLE EAST
taking place all over the world.
AFRICA
There are two open and transparent markets - crude oil and refined
ASIA PACIFIC products - within which the European refining industry operates.
TRADE FLOWS IN 201510 Statistical Report 2018 - Oil & Energy
FIG.4 WORLDWIDE REFINED PRODUCT DEMAND*
AVERAGED 96.5 MILLION BARRELS PER DAY
IN 2016, WITH EU ACCOUNTING FOR 13%
Source: BP Statistical Review of World Energy 2017
OTHER ASIA PACIFIC 13% 25% NORTH AMERICA
EURASIA 1%
JAPAN 4%
INDIA 5%
Total
7% SOUTH AND
96.5 Mbd
CENTRAL AMERICA
CHINA 13%
3% RUSSIA
AFRICA 4%
MIDDLE EAST 10% 15% EUROPE
of
ofwhich
which
EU: 13% and
Non EU: 2%
Global demand for oil demand products increased from 96.1 *
I nland demand plus international aviation and marine
million barrels per day in 2015 to 96.5 in 2016. Although the bunkers and refinery fuel and loss. Consumption of
European market is declining, it still remains the second biogasoline (such as ethanol), biodiesel and derivatives
largest in the world (15%) behind North America. China, of coal and natural gas are also included.
Middle East and Africa noted a continued growth in demand
for refined products.Oil & Energy - Statistical Report 2018 11
FIG.5 WORLDWIDE REFINING SUPPLY/MARKET DEMAND
BALANCES IN 2017
Source: Wood Mackenzie
1006 1078 276
149
686 762
RUSSIA
566 568
Unit: Million tonnes per year
NORTH EUROPE
157 185
AMERICA
372 424 JAPAN
CHINA
114 182 MIDDLE
EAST
AFRICA
709 754
241 330
LATIN
AMERICA ASIA &
OCEANIA
REFINERY THROUGHPUT REFINED PETROLEUM PRODUCTS DEMAND
The refining supply/market demand balance shows that Relatively balanced product demand and refinery throughput
most of the regions are dependent on imports to meet in the EU hides a large surplus of EU gasoline production and
market demand. Russia has a positive trade balance, which a significant shortage of diesel and jet production.
provides it with a key role in supplying the demand from
other regions.12 Statistical Report 2017 - Oil & Energy
FIG.6 EU TOTAL OIL DEMAND AMOUNTED TO
630 MILLION TONNES IN 2017
Source: Wood Mackenzie
COUNTRY Mt/y COUNTRY Mt/y
Austria 12.8 Italy 60.5
Belgium 30.1 Latvia 1.7
Bulgaria 4.2 Lithuania 2.6
Croatia 3.3 Luxembourg 2.6
Cyprus 2.4 Malta 2.4
Unit: Million tonnes per year
Czech Republic 10.2 Netherlands 47.7
Denmark 7.4 Poland 27.6
Estonia 1.3 Portugal 10.9
Finland 9.5 Romania 10
France 79.3 Slovakia 4.3
Germany 117.7 Slovenia 2.5
Greece 14.5 Spain 63.0
Hungary 7.4 Sweden 14.1
Ireland 7.1 United Kingdom 71.6
EU TOTAL 630.2
Norway 9.1
EU
Switzerland 10.0
NON EU
Turkey 47.1
TOTAL NO + CH + TR 66.4
TOTAL 696.6
EU-28 total oil demand amounted to 630.2 Mt in 2017, Among EU Member States that recorded the biggest fall in
representing a slight increase of approximatively 0.7% the oil demand were Malta (-4.1%), Luxembourg (-3.7%) and
compared to 2016. Italy (-3.7%).
Most EU Member States recorded an increase in oil demand. Note: Please note that due to rounding, figures may not add up.
Czech Republic, Poland and Sweden with respectively
17.2%, 6.1% and 4.3%, show the biggest increase.Prices and Margins - Statistical Report 2018 13
HOW TO REDUCE
CARBON
EMISSIONS IN
?14 Statistical Report 2017 - Oil & Energy
Providing low-carbon liquid fuels
The pathway to reduce CO2
emissionsOil Products - Statistical Report 2017 15
FIG.7 DEMAND HISTORY OF OIL PRODUCTS
IN THE EU IN 2017
Source: Wood Mackenzie
800
37.7
700
75.5
Total Demand 2017: 630.2
600 26.1 27.4
52.8 52.6
Unit: Million tonnes per year
111.5 30.9
500 44.9
79.4
54.6
400
288.7 58.3
286.4
300
200
100
93
50
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Since 2008, we can observe a downward trend FUEL OIL NAPHTHA
for oil products demand in the EU. Over the past
DIESEL/GASOIL LPG
8 years, overall demand declined by around
8%. The downward trend is mainly driven by the JET/KEROSENE OTHER PRODUCTS
decrease in fuel oil and gasoline, whilst diesel/ GASOLINE REFINERY FUEL & LOSS
gasoil and kerosene decreased only slightly.16 Statistical Report 2018 - Oil Products
FIG.8 AVERAGE REFINERY OUTPUT BY PRODUCT TYPE
IN OECD EUROPE IN 2017
Source: OECD/IEA
2.7% LPG
12.6% OTHER PRODUCTS
6.9% NAPHTHA
11.7% FUEL OIL 18.3% GASOLINE
7.9% KEROSENE
39.8% DIESEL/GASOIL
A wide range of products, from transportation and industrial for transport and industry, petroleum coke for the metal
fuels to chemical feedstock, are produced from crude oil. industry as well as waxes, solvents and other specialised
EU refineries also produce many specialty products, such products. Fuels for transport represent the biggest share of
as bitumen for road construction and roofing, lubricants the production.Oil Products - Statistical Report 2018 17
FIG.9 ROAD FUEL DEMAND IN THE EU
IN 2017
Source: Wood Mackenzie
300,000 3.00
250,000 2.50
Unit: Million tonnes per year
Diesel/Gasoline ratio
200,000 2.00
150,000 1.50
100,000 1.00
50,000 0.50
0 0.00
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
GASOLINE DIESEL RATIO
The tax-incentivised dieselisation trend has significantly gasoline as well as a shortage of diesel production in the EU.
contributed to a fundamental change in the EU’s road fuel Gasoline demand continues to decline while diesel demand
demand structure. The shift from gasoline to diesel began is on the rise, currently reaching a 2.5 demand ratio in 2017.
some 25 years ago and led to a major demand decline for18 Statistical Report 2018 - Oil Products
FIG.10 ROAD FUEL DEMAND IN THE EU BY COUNTRY
IN 2017
Source: Wood Mackenzie
34% Germany 66%
17% France 83%
33% United Kingdom 67%
27% Italy 73%
18% Spain 82%
25% Poland 75%
42% Netherlands 58%
17% Belgium 83%
21% Austria 79%
36% Sweden 64%
27% Czech Republic 73% Sustained on by favourable excise taxes
25% Romania 75% on diesel, the shift from gasoline to diesel
21% Portugal 79% over the past two decades led to a higher
Greece demand for diesel as a road fuel in the vast
51% 49%
majority of EU Member States.
31% Hungary 69%
34% Denmark 66% In some countries, such as France and
35% Finland 65% Spain the imbalance is far more pronounced
27% Ireland 73% as a result of very favourable tax policies
for diesel. Moreover, recent measures
22% Bulgaria 78%
to rebalance taxation level of diesel with
25% Slovakia 75%
gasoline could trigger a progressive shift in
15% Luxembourg 85% diesel demand.
30% Croatia 70%
23% Slovenia 77% The continued growth in heavy duty
transport in the EU, driven by the internal
14% Lithuania 86%
market and external trade, has further
21% Latvia 79% contributed to spurring diesel demand.
29% Estonia 71%
54% Cyprus 46%
43% Malta 57%
20 15 10 5 - - 5 10 15 20 25 30 35
Unit: Million tonnes per year GASOLINE DIESELOil Products - Statistical Report 2018 19
FIG.11 NET TRADE FLOWS FOR REFINED PRODUCTS
DEMONSTRATE THE TREND OF GROWING
GASOLINE SURPLUS AND DIESEL / GASOIL /
JET FUEL DEFICITS
Source: Eurostat
80%
Unit: Percentage imports/percentage exports
60% Net gasoline exports:
53 319 ktonnes
40%
20%
0% Net diesel/gasoil
imports:
26 591 ktonnes
-20%
Net jet fuel imports:
17 222 ktonnes
-40%
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
The EU is facing significant excess gasoline production capacity, GASOLINE
and is however unable to meet regional demand for diesel and jet
DIESEL/GASOIL
fuel. Therefore the EU is relying on imports from third countries.
JET FUEL20 Statistical Report 2018 - Oil Products
FIG.12 MAJOR GASOLINE AND DIESEL/GASOIL
TRADE FLOWS TO AND FROM THE EU IN 2016
Source: Eurostat
EU
79.4 286.4
23.1 RUSSIA
20.8
NORTH
AMERICA 7.1 12.9 ASIA
Unit: Million tonnes per year
10.0 ASIA
12.3
AFRICA
The major trade flows to and from the EU are a result of the gasoline/ GASOLINE DEMAND IN 2016
diesel imbalance demand in Europe. As a consequence, significant excess DIESEL/GASOIL DEMAND IN 2016
gasoline production capacity needs to be exported, while, to meet regional
demand for diesel and jet fuel, Europe became heavily reliant on other MAIN GASOLINE TRADE FLOWS IN 2016
countries for import, especially Russia, the Middle East and USA. MAIN DIESEL/GASOIL TRADE FLOWS IN 2016
North America was the traditional market for exporting gasoline surplus but
the recent shale oil revolution and cheap energy enabled US refiners to
increase their supplies for their internal market and compete on other export
markets with EU refiners.Oil Products - Statistical Report 2018 21
FIG.13 EU GASOLINE TRADING BALANCE
USA REMAINS AN IMPORTANT EXPORT MARKET
FOR THE EU
Source: Eurostat
EXPORT
2016 1% 66% 33%
2015 74% 27%
2014 7% 63% 30%
2013 10% 59% 31%
2012 10% 58% 32%
2011 5% 63% 32%
2010 9% 59% 32%
2009 9% 55% 36%
2008 11% 46% 43%
2007 10% 42% 49%
2006 10% 35% 54%
2005 12% 34% 54%
2004 14% 23% 62%
2003 19% 22% 59% EUROPE NON EU
2002 19% 24% 58% REST OF THE WORLD
USA
2001 24% 23% 54%
Note: Please note that due to rounding,
2000 23% 28% 49%
figures may not add up to exactly 100%.
0 5 10 15 20 25 30 35 40 45 50
Unit: Million tonnes per year
The US was the traditional export market for the structural EU other markets, primarily Africa and Asia. The EU gasoline
gasoline surplus. The recent shale oil boom has decreased surplus in 2016 remained high. North America and Asia were
export opportunities to the US and forced EU refiners to find the two key export markets for the EU.22 Statistical Report 2018 - Oil Products
FIG.14 EU DIESEL/GASOIL TRADING BALANCE
RUSSIA IS A LEADING EXPORTER OF GASOIL TO
THE EU
Source: Eurostat
IMPORT EXPORT
36% 64% 2016
36% 64% 2015
37% 63% 2014
44% 56% 2013
49% 51% 2012
44% 56% 2011
29% 71% 2010
36% 64% 2009
37% 63% 2008
6% 94% 2007
8% 92% 2006
1% 99% 2005
10% 90% 2004
100% 2003
2% 98% 2002
1% 99% 2001
1% 99% 2000
40 30 20 10 0 10 20
Note: Please note that due to rounding, Unit: Million tonnes per year
figures may not add up exactly to 100%.
NORTH AMERICA After a significant increase of gasoil imports from the US between 2008 and
2013, Russia recovered some of the lost shares in 2014-2016 to remain the
RUSSIA
leading gasoil exporter to the EU. This continued dependence of the EU on
REST OF THE WORLD imports of gasoil is the result of the diesel/gasoline imbalance that the EU is
facing for many years.Oil Products - Statistical Report 2018 23
FIG.15 EU JET FUEL TRADING BALANCE
MIDDLE EAST REMAINS MAIN JET FUEL SUPPLIER
FOR THE EU
Source: Eurostat
IMPORT EXPORT
7% 26% 67% 2016
6% 29% 64% 2015
9% 29% 62% 2014
8% 28% 64% 2013
8% 23% 69% 2012
1% 32% 66% 2011
9% 25% 66% 2010
14% 34% 51% 2009
10% 38% 51% 2008
7% 17% 77% 2007
15% 15% 70% 2006
23% 10% 67% 2005
17% 6% 78% 2004
16% 5% 79% 2003
32% 4% 64% 2002
16% 84% 2001
25% 74% 2000
20 15 10 5 0 5
Unit: Million tonnes per year
REST OF THE WORLD MIDDLE EAST There is a growing EU dependence on jet fuel imports
originating mainly from the Middle East and to a lesser
ASIA PACIFIC EUROPE NON EU extent from Asia Pacific.
Note: Please note that due to rounding, figures may
not add up exactly to 100%.24 Statistical Report 2018 - Oil Products
FIG.16a GLOBAL MARINE FUEL CONSUMPTION
Source: Wood Mackenzie
300 000 The global demand for marine
Unit: Consumption (1000 tonnes)
206 937 fuel is mainly met by fuel
250 000 oil (76%), while gasoil only
176 420 represents 24% of the market.
200 000
The new limits for sulphur
FUEL OIL content of marine fuels could
150 000
drastically change the market
GASOIL
with a massive demand for
100 000 low sulphur distillates, requiring
64 477 major refinery investments.
50 000 47 828
0
05
06
07
08
09
10
11
12
13
14
15
16
17
20
20
20
20
20
20
20
20
20
20
20
20
20
FIG.16b MARINE FUEL CONSUMPTION IN THE EU
Source: Wood Mackenzie
70 000 During the past years there
Unit: Consumption (1000 tonnes)
was a rise in marine gasoil
60 000 45 630 consumption at the expense
of fuel oil. Switching to LNG or
50 000 37 231
using scrubbers are alternatives
to meeting the new International
40 000 FUEL OIL
Maritime Organisation (IMO)
GASOIL emissions limits.
30 000
20 000
13 276
11 073
10 000
0
05
06
07
08
09
10
11
12
13
14
15
16
17
20
20
20
20
20
20
20
20
20
20
20
20
20Oil Products - Statistical Report 2018 25
FIG.17 MARINE FUEL SULPHUR SPECIFICATIONS
SULPHUR EMISSION CONTROL AREAS (SECAs)
Source: IMO
Established ECAs
Possible ECAs
Limits for the sulphur content of marine fuels in SECAs: 200 nautical miles from the coast of US and Canada, have had to
1% until 31 December 2014 reduce their sulphur emissions to 0.1%. Vessels are required to
0.1% since 1 January 2015 use either a distillate, an alternate fuel or install a scrubber that
removes sulphur from the exhaust after combustion.
Limits for the sulphur content of marine fuels outside SECAs in
the EU waters by 2020: 0.50% for EU waters by 2020. The implementation date for the 0.5% global sulphur cap is set
for 2020, the International Maritime Organization (IMO) Marine
Since January 2015, all vessels in the Emission Controlled Area Environment Protection Committee decided at its 70th session
(ECA) of the Baltic Sea, North Sea, English Channel and waters in London.26 Statistical Report 2018 - Oil Products
FIG.18a PM EMISSIONS FROM EXHAUST
IN THE EU REDUCED BY OVER 60%
Source: European Environment Agency
PM2.5 PM10
400 400
350 350
Unit: Kilo tonnes (kt)
300 300
250 250
200 200
150 150
100 100
50 50
0 0
1990 1996 2002 2008 2014 1990 1996 2002 2008 2014
PM2.5 Overall transport emissions PM10 Overall transport emissions
PM2.5 Exhaust emissions PM10 Exhaust emissions
PM emissions are continuously decreasing as the result of With the introduction of the Euro 6 standard, modern road
cleaner diesel fuel, advanced engines and effective emissions vehicles with diesel engines are using highly efficient filters
control technology. that remove 99.9% of PM.Oil Products - Statistical Report 2018 27
FIG.18b SINCE 1990 FUELS ARE GETTING
PROGRESSIVELY CLEANER RESULTING
IN SIGNIFICANT EMISSIONS REDUCTIONS
Source: European Environment Agency
8000
NOx
7000 700
SOx
6000 600
5000 500
4000 400
3000 300
2000 200
Unit: Kilo tonnes (kt)
1000 100
0 0
1990 2000 2014 1990 2000 2014
6000 35000
NMVOC CO
30000
5000
25000
4000
20000
3000
15000
2000
10000
1000
5000
0 0
1990 2000 2014 1990 2000 2014
Since 1990 the refining industry has contributed to cleaner NOX (as NO2) - Nitrogen Oxides
exhausts by today containing over 80% lower SOX, NMVOC SOX (as SO2) - Sulphur Oxides
& CO, while NOX emissions decreased by over 60%. These NMVOC - Non Methane Volatile Organic Compounds
significant improvements are the result of the partnerships CO - Carbon Monoxide
with the automotive industry aiming at improving the fuel-
engine efficiency and leading to multiple environmental
benefits.28 Statistical Report 2018 - Oil Products
FIG.19 MAXIMUM ON-ROAD DIESEL SULPHUR LIMITS
Source: Stratas Advisors, March 2018
10 - 15 PPM 16 - 50 PPM 51 - 350 PPM
351 - 500 PPM 501 - 2000 PPM 2001 - 10000 PPM No information
Countries may apply lower limits for different grades, regions/ Detailed information on limits and regulations can be found at
cities, or based on average content. www.stratasadvisors.com.Oil Products - Statistical Report 2018 29
FIG.20 MAXIMUM GASOLINE SULPHUR LIMITS
Source: Stratas Advisors, March 2018
0 - 10 PPM 11 - 30 PPM 31 - 50 PPM
51 - 150 PPM 151 - 500 PPM 501 - 3500 PPM No information
Countries may apply lower limits for different grades, regions/ Detailed information on limits and regulations can be found at
cities, or based on average content. www.stratasadvisors.com.30 Statistical Report 2017 - Prices and Margins
Prices and Margins - Statistical Report 2017 31
FIG.21 CRUDE OIL PRICE EVOLUTION
Source: Energy Information Administration
160
140
REAL (2017)
US dollar per barrel, monthy average
NOMINAL
Unit: Europe Brent spot price
120
100
80
60
40
20
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
The EU Refining industry operates between two global, open After a decade of relatively low prices, oil started rising last
and transparent markets: the market for crude oil and the market decade, leading to peaks just before the financial crisis in 2008.
for refined products. The main benchmarks are priced in dollars. In March 2016, oil prices fell sharply reaching closing prices
below 40 $. Prices rose again in 2017 to reach $70 in January
The price of crude oil is set on international spot markets and 2018.
reported by designated agencies. The price of oil is an important
marker for the global economy and is closely watched by
businesses and policy-makers.32 Statistical Report 2018 - Prices and Margins
FIG.22 BRENT V WTI
Source: Energy Information Administration (EIA)
120
100
Unit: Average annual price (USD/bbl)
80
60
40
20
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
WTI Brent
Brent and West Texas Intermediate are two of the main crude costs, though this differential decreased last year. The lifting of
oil benchmarks. Historically, these crudes, of similar quality, the US crude oil export ban is one of the reasons that led to the
have traded at similar prices. Recent years saw Brent trade at narrowing of the spread between North Sea Brent and U.S. West
a premium to WTI, meaning EU refiners generally faced higher Texas Intermediate.Prices and Margins - Statistical Report 2018 33
FIG.23 REFINERS OPERATE BETWEEN TWO GLOBAL
COMMODITY MARKETS: CRUDE MARKET AND
REFINED PRODUCTS MARKET
Source: Wood Mackenzie & Argus Media
Unit: Average yearly prices; US Dollar per barrel
140
120 BRENT FOB
100 DIESEL
GASOLINE
80
DIESEL CRACK
60 GASOLINE CRACK
40
20
EU refining operates between two global
0
commodity markets, the crude market
19 5
19 6
19 7
19 8
20 9
20 0
20 1
20 2
20 3
20 4
20 5
20 6
20 7
20 8
20 9
20 0
20 1
20 2
20 3
20 4
20 5
20 6
17
9
9
9
9
9
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
and the refined products market.
19
The ‘crack spread’ represents the
Unit: Average yearly prices; US Dollar per barrel
difference between the cost of crude oil
140
and the market sales price for refined
products. Generally, product prices rise
120
with crude prices but the drivers of the
100 difference are many. In historic terms,
the profitability has started to decline in
80 a context of falling demand (2008).
After a first, yet small, improvement, in
60
2012-2013 a better period started for
40 refineries in 2015-2017. The spread
is generally tight, margins are low and
20 the industry is highly vulnerable to the
operating costs that must be deducted
0 from the spread before profitability can
be considered.
19 5
19 6
19 7
19 8
99
20 0
20 1
20 2
20 3
20 4
20 5
20 6
07
20 8
20 9
20 0
20 1
20 2
20 3
20 4
20 5
20 6
17
9
9
9
9
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
19
20
2034 Statistical Report 2018 - Prices and Margins
FIG.24 A
VERAGE ESTIMATED QUANTIFIABLE IMPACT
OF THE LEGISLATION ON EU REFINERIES
DURING 2000-2012 BARREL OF THROUGHPUT
Source: European Commission, Sectoral fitness check for the petroleum refining sector
0.50
0.47 EUR/bbl
0.45
Industrial Emissions
0.40
Renewable Energy
Unit: EUR/bbl of throughput
(biofuel CapEx)
0.35
Renewable Energy
0.30 (modelled net foregone
earnings)
0.25
Fuel Quality
0.20
0.15
0.10
0.05
0
Impact during 2000-2012
The European Commission Fitness Check concluded that sector’s decline in competitiveness versus regional peers. The
refiners suffered additional costs of 0.47€ per barrel due to EU European Commission Refining Fitness Check was published in
regulation from 2000 to 2012, accounting for a quarter of the December 2015 after almost three years of analysis.Prices and Margins - Statistical Report 2018 35
FIG.25 CUMULATIVE COST IMPACT OF EU LEGISLATION
IN 2020
Source: Concawe
12.0 12.0
11.5 2020 Low cost
scenario 11.5 2020 High cost
scenario
Unit: Estimated cost to EU refiners ($/bbl)
Unit: Estimated cost to EU refiners ($/bbl)
11.0 11.0
10.5 10.5
10.0 10.0
9.5 9.5
9.0 9.0
8.5 8.5
8.0 8.0
7.5 7.5
7.0 7.0
6.5 6.5
6.0 6.0
Baseline ETS IED REACH RED SLFD Baseline ETS IED REACH RED SLFD
opex (MFD) opex (MFD)
This chart provides an estimation of the cost burden likely to ETS - Emission Trading Scheme (2009/29/EC)
be imposed on EU refineries over the period 2010 to 2020 as
IED - Industrial Emission Directive (2010/75/EC)
the result of a number of EU legislative and implementing acts.
It shows the cumulative impact in a low and high cost scenario, REACH - Registration, Evaluation, Authorisation & Restriction
expressed in dollars per barrel of refinery intake. These estimated of Chemicals (Regulation 1907/2006)
costs impacts should be seen in the context of the EU refining
RED - Renewable Energy Directive (2009/28/EC)
net margin not exceeding 5$/bbl in recent years (source: IEA
Market Series - Oil 2018 -Analysis and forecasts to 2023). SLFD - The Sulphur in Liquid Fuels Directive (1999/32/EC)
The legislation under consideration has the potential to OPEX - Operating Expense
significantly increase the operating costs of the EU refining
For EU ETS, ‘low cost scenario assumes 16.5 €/t CO2, high cost
industry, thereby impairing its competitive position relative to
scenario 30 €/t CO2.
other world regions where similar legislation is not enacted or is
enforced at later dates.36 Statistical Report 2018 - Prices and Margins
FIG.26 FUEL TAXES MAKE A SIGNIFICANT
CONTRIBUTION TO MEMBER STATE NATIONAL INCOME
Source: Eurostat, Wood Mackenzie and European Commission
LESS THAN 5%
5% - 10%
COUNTRY SHARE
HIGHER THAN 10%
SI Slovenia 12%
EUROPE NON EU 4% BG Bulgaria 11%
3% EE Estonia 11%
HR Croatia 10%
11%
RO Romania 10%
9% LT Lithuania 10%
3%
10% LV Latvia 9%
CY Cyprus 9%
7% 4%
5%
8% PL Poland 8%
4% 4% EL Greece 8%
6% 8% PT Portugal 8%
8%
CZ Czech 8%
4% 8%
4% SK Slovakia 8%
12% 10%
10% HU Hungary 8%
IE Ireland 7%
5%
11% ES Spain 6%
LU Luxembourg 6%
6% 7% MT Malta 5%
8%
IT Italy 5%
UK UK 5%
5% BE Belgium 4%
9%
AT Austria 4%
NL Netherlands 4%
DE Germany 4%
FR France 4%
FI Finland 4%
Taxes on fuels contribute on average to some 7% of Member State tax revenue. SE Sweden 3%
This significant contribution to Member State revenue has to be put in perspective DK Denmark 3%
with the subsidies given to many competing alternatives to oil. This demonstrates
that replacing petroleum products by these alternatives would have severe
consequences for Member States’ income.
*Figures are based on 2017 tax revenuesPrices and Margins - Statistical Report 2018 37
FIG.27 TOTAL TAXATION SHARE
IN THE END CONSUMER PRICE
Source: European Commission
EURO-SUPER 95 EURO-SUPER 95 ROAD DIESEL OIL ROAD DIESEL OIL
COUNTRY % COUNTRY %
64% 66 54
Italy 65 Slovenia 60
SE
Germany 65 Ireland 58
64 52
Sweden 64 EE 60 56 Netherlands 57
France 64 LV 59 55 Germany 56
DK
Portugal 64 LT Portugal 56
62 53
Slovakia 64 55 50 Estonia 56
IE NL
DE PL
Slovenia 64 UK Malta 55
63 58 69 57
65 56 55 51
Ireland 63 65 64 Latvia 55
BE
CZ
Belgium 62 65 62 LU Finland 54
60 54 SK 64 52
Denmark 61 55 48 Croatia 54
FR AT 59 53 HU
Croatia 60 RO Denmark 53
64 61 55 52
Estonia 60 63 60 SI HR Czech Republic 53
54 51
Czech Republic 59 60 54 Austria 53
Austria 58 IT BG
Cyprus 53
65 61 52 49
Malta 57 ES Sweden 52
Hungary 56 55 50 EL Hungary 52
Cyprus 55 PT 66 52 Greece 52
Lithuania 55 64 56 Slovakia 52
Latvia 55 57 55 MT Poland 51
Spain 55 Romania 51
CY
Poland 55 The price at the pump is driven to a large degree by tariffs and taxes and, on Spain 50
56 53
Luxembourg 55 average, over half the cost of fuel at the pump represents taxes. The taxes Lithuania 50
Romania 54 on gasoline are generally higher than for diesel. This differential tax treatment Bulgaria 49
has driven a demand shift over the past 20 years. Fuels taxes contribute
Bulgaria 52 Luxembourg 48
substantially to Member States’ revenues.
Reference date: 13 March 2018.38 Statistical Report 2018 - Prices and Margins
FIG.28 BREAKDOWN OF AUTOMOTIVE DIESEL PRICES
ACROSS EU (MARCH 2018)
Source: European Commission
PRODUCT TARIFFS VAT
Sweden 0.693 0.454 0.287 1.433
Italy 0.546 0.617 0.256 1.419
United Kingdom 0.507 0.662 0.234 1.402
France 0.526 0.610 0.227 1.362
Finland 0.610 0.460 0.257 1.327
Greece 0.633 0.421 0.253 1.306
Belgium 0.502 0.566 0.224 1.292
Denmark 0.597 0.423 0.255 1.274
Estonia 0.563 0.493 0.211 1.267
Ireland 0.525 0.499 0.235 1.259
Portugal 0.549 0.471 0.235 1.255
Netherlands 0.537 0.498 0.217 1.252
Cyprus 0.576 0.461 0.197 1.234
Slovenia 0.494 0.502 0.219 1.215
Croatia 0.558 0.412 0.242 1.212
Malta 0.528 0.472 0.180 1.180
Germany 0.511 0.470 0.186 1.168
Hungary 0.555 0.363 0.248 1.165
Slovakia 0.554 0.416 0.194 1.164
Czech Republic 0.528 0.431 0.201 1.160
PRODUCT
Latvia 0.519 0.424 0.198 1.141
TARIFFS
Romania 0.559 0.394 0.181 1.134
VAT
Spain 0.566 0.367 0.196 1.130
Austria 0.525 0.410 0.187 1.122 Unit: Price in Euro
Lithuania 0.552 0.347 0.189 1.087 per litre
Poland 0.521 0.347 0.200 1.067
Bulgaria 0.528 0.330 0.172 1.030
Luxembourg 0.528 0.335 0.147 1.010
0.000 0.200 0.400 0.600 0.800 1.000 1.200 1.400 1.600
In most EU Member States gasoline prices are generally higher the remainder represents taxes, the biggest share, the purchase
than diesel prices due to the higher tax element. Only a fraction of the crude and the distribution and marketing costs.
of the price paid at the pump contributes to the refiners’ income,Prices and Margins - Statistical Report 2018 39
FIG.29 BREAKDOWN OF AUTOMOTIVE GASOLINE PRICES
ACROSS EU (MARCH 2018)
Source: European Commission
PRODUCT TARIFFS VAT
Italy 0.537 0.728 0.278 1.544
Netherlands 0.479 0.786 0.266 1.531
Greece 0.518 0.711 0.295 1.524
Denmark 0.588 0.620 0.302 1.510
Portugal 0.525 0.659 0.272 1.457
France 0.514 0.691 0.241 1.447
Sweden 0.517 0.635 0.288 1.440
Finland 0.485 0.674 0.278 1.437
United Kingdom 0.472 0.662 0.227 1.360
Ireland 0.497 0.608 0.254 1.359
Germany 0.459 0.655 0.212 1.325
Belgium 0.475 0.615 0.229 1.319
Malta 0.561 0.549 0.200 1.310
Slovakia 0.497 0.580 0.216 1.293
Estonia 0.512 0.563 0.215 1.290
Croatia 0.504 0.520 0.256 1.279
Slovenia 0.470 0.576 0.230 1.276
Latvia 0.500 0.518 0.214 1.232
Spain 0.547 0.461 0.212 1.221
Cyprus 0.535 0.490 0.195 1.219
PRODUCT
Czech Republic 0.480 0.505 0.207 1.192
TARIFFS
Lithuania 0.530 0.434 0.203 1.167
VAT
Austria 0.474 0.493 0.194 1.161
Hungary 0.507 0.394 0.243 1.145 Unit: Price in Euro
Luxembourg 0.514 0.462 0.166 1.142 per litre
Romania 0.515 0.423 0.178 1.116
Poland 0.490 0.396 0.204 1.091
Bulgaria 0.505 0.363 0.174 1.041
0.000 0.200 0.400 0.600 0.800 1.000 1.200 1.400 1.600
In most EU Member States, gasoline prices are generally Only a fraction of the price paid at the pump contributes to
higher than diesel prices due to the higher tax element. the refiners’ income, the remainder going to Member States
and the purchasing of the crude oil.40 Statistical Report 2018 - Refining
Vision 2050
A PATHWAY FOR THE
EVOLUTION OF THE REFINING
INDUSTRY AND LIQUID FUELSRefining - Statistical Report 2017 41
FIG.30 GLOBAL REFINING CAPACITY
AS OF 2016
Source: BP Statistical Review of World Energy 2017
22.7% 17.3%
North Europe + 6.6%
America Eurasia Russia
22 110 16 886 6 418
Unit: Thousand barrels daily
6.4% 9.7% 33.7%
Latin 3.5%
Middle
e Asia
America Africa
East Pacific
6 259 3 457 9 476 32 825
Refining is spread around the world and is a truly global decreased from 17.7% in 2015 to 17.3% in 2016 but remains the
business. The share of Europe and Eurasia (Rusia excluded) has third largest refining region.42 Statistical Report 2018 - Refining
FIG.31 REFINERY INVESTMENTS IN REFERENCE CASE
2017 - 2040
Source: OPEC World Oil Outlook 2017
400
MAINTENANCE/CAPACITY REPLACEMENT
REQUIRED ADDITIONS
320
EXISTING PROJECTS
Unit: $(2016) billion
240
160
80
0
Other
US & Latin Russia & Middle
Africa Europe China Asia-
Canada America Caspian East
Pacific
All three categories of refinery investment requirements maintenance, $265 billion to investments in known project and
are estimated at over $1.5 trillion in the period 2017-2040. the remaining $385 billion to additions beyond firm projects.
The majority, around $900 billion will be dedicated toRefining - Statistical Report 2018 43
FIG.32 REFINERY/STEAM CRACKER SITES
IN EUROPE
Source: Concawe and PetrochemicalsEurope
2
4
3 3
3
REFINERY LOCATION
STEAM CRACKER LOCATION
INTEGRATED REFINERY / STEAM CRACKER LOCATION
A large number of refineries are integrated with or located very Such interconnections show how refining is an intrinsic part of
closely to steam crackers which produce the feedstock for the the industrial value chain and provides the basis for advanced
petrochemical industry. high value products.44 Statistical Report 2018 - Refining
FIG.33 80 MAINSTREAM REFINERIES WERE OPERATING
IN THE EU, NORWAY AND SWITZERLAND AT THE
END OF 2017
Source: Concawe
Number of Number of
COUNTRY refineries COUNTRY refineries
Austria 1 Ireland 1
Belgium 3 Italy 9
Bulgaria 1 Lithuania 1
Croatia 1 Netherlands 6
Czech Republic 2 Poland 2
Denmark 2 Portugal 2
Finland 2 Romania 2
France 7 Slovakia 1
Germany 11 Spain 9
Greece 4 Sweden 3
Hungary 1 United Kingdom 6
EU TOTAL: Refineries = 77
Norway 2
Switzerland 1
TOTAL NO + CH: Refineries = 3
TOTAL: Refineries = 80
In January 2018, there were 80 ‘mainstream’
EU NON EU (capacity above 2.5Mta) refineries in the EU,
Threshold >50 kbbl/d or 2.5Mt/a Norway and Switzerland.Refining - Statistical Report 2018 45
FIG.34 EU, NORWEGIAN AND SWISS MAINSTREAM
REFINERIES HAD 681 MILLION TONNES
OF PRIMARY REFINING CAPACITY IN 2017
Source: Concawe and Oil & Gas Journal
*Refining *Refining
COUNTRY capacity COUNTRY capacity
Austria 10.0 Ireland 3.6
Belgium 38.8 Italy 88.3
Bulgaria 9.8 Lithuania 9.5
Croatia 4.5 Netherlands 64.4
Czech Republic 8.7 Poland 25.2
Denmark 8.7 Portugal 15.2
Finland 13.0 Romania 8.1
France 63.5 Slovakia 5.8
Germany 97.0 Spain 72.4
Greece 21.2 Sweden 22.0
Hungary 8.1 United Kingdom 63.7
EU TOTAL: Refineries = 661.5 million tonnes per year
Norway 16.0
Switzerland 3.40
TOTAL NO + CH: Refineries = 19.4 million tonnes per year
TOTAL: Refineries = 680.9 million tonnes per year
EU NON EU
Threshold >50 kbbl/d or 2.5Mt/a
The 80 mainstream refineries operating in 2017 in the EU-28, Note: Refining capacity is expressed in million tonnes per year.
Norway and Switzerland had a primary refining capacity of 681 Numbers may not add up due to rounding.
million tonnes in 2017. This represents a capacity decrease by
some 75 million tonnes of primary refining capacity since 2010. *Status in December 2017
Over the past 12 months the refining capacity decreased in the
EU by 3.25%, mainly in Italy, Germany, France, and the UK.46 Statistical Report 2018 - Refining
FIG.35 REFINERY CLOSURES IN EUROPE
Source: Platts and Concawe
300
Unit: Capacity (kbbl/d)
200
100
0
2009 2010 2011 2012 2013 2014 2015 2017
GERMANY UK FRANCE ITALY ROMANIA
Threshold >50 kbbl/d or 2.5Mt/a
Since 2009, out of close to 100 refineries operating in Europe, 16 mainstream refineries were closed.Refining - Statistical Report 2018 47
FIG.36 OIL PIPELINES - MAP OF EUROPE
Source: Concawe
F i n l a n d
a
S w e d e n
ni
A N o r w a y
th
T
L
Bo
A
O N
C T
I C
of
E Helsinki
A
N
G ul f
Oslo
Stockhol m
Tallinn
Estonia
Riga
Latvia
Denmark
Copenhagen
Lithuania
G r e a t
Vilnius
B r i t a i n
Minsk
Rep. of Belarus
Ireland
Dublin
The Netherlands
Berlin
Amsterdam Warsaw
London
P o l a n d
Belgium
G e r m a n y
Bruxelles
Czech
Luxembourg
Luxembourg
Prague
Rep. U k r a i n e
Paris
S l o v a k i a
Austria Vienna
Bratisl ava
Moldova
Switzerland
Liechtenstien Hungary Budapest
F r a n c e Bern
Slovenia
R o m a n i a
Ljubljana Zagreb Croatia
Bosnia
Belgrade
and
San Marino Herzegovina Serbia Bucharest
Sarajevo
I t a l y Montenegro
B u l g a r i a
Andorra
Sofia
Podgorica
Rome
FYROMSkopje
Tirana
Albania
Portugal Madrid
S p a i n G r e e c e
Lisbon
T u r k e y
Athens
Valletta
REFINERY IN OPERATION
TWO OR MORE REFINERIES IN OPERATION Pipelines are a long-established, safe and efficient mode of
PIPELINES: IN OPERATION OR STAND BY transport for crude oil and petroleum products. They are used
both for short-distance transport (e.g. within a refinery or depot,
CRUDE OIL
or between neighbouring installations) and long distances.
OIL PRODUCTS
Note: The map is based on publicly available information as An extensive network of cross-country oil pipelines in Europe
well as the information gathered by Concawe and as such meets a large proportion of the need for transportation of
should not be considered exhaustive. petroleum products.48 Statistical Report 2018 - Refining
FIG.37 CAPACITY AND UTILISATION
OF EUROPEAN REFINERIES
Source: BP Statistical Review of World Energy 2016
800 100%
700 87.3%
Unit: Capacity (million tonnes)
Unit: Utilisation rate
600 74.6%
62%
2007 2008 2009 2010 2011 2012 2013 2014 2015
IDLE CAPACITY REFINERY THROUGHPUT UTILISATION RATE
Since 2007, the utlisation rate of EU refineries has utilisation of European refineries oscillating around 85%. This
continuously dropped from 87% to a lowest of 78% in 2014. rate is commonly accepted as a requirement for efficient
In 2015, a reverse of the trend has been observed with the economic operations of a refinery.Refining - Statistical Report 2018 49
FIG.38 GHG EMISSIONS BY SECTOR IN THE EU
IN 2015
Source: European Environmental Agency
TRANSPORT 17.7%
INTERNATIONAL
NAVIGATION 2.6% 26.0% ENERGY SUPPLY
CO2 EMISSIONS
FROM BIOMASS 10.4%
WASTE MANAGEMENT 2.7%
INTERNATIONAL
16.8% INDUSTRY
AVIATION 2.8%
OTHER 0.2%
RESIDENTIAL AND
COMMERCIAL 10.8% 10.1% AGRICULTURE
Energy supply and industry accounted for almost 43% of GHG Note: Please note that due to rounding, figures may not add up
emissions in the EU in 2015. Transport, including international exactly to 100%.
shipping and aviation, is supplied at 94% by oil refined products,
and generates just under 23% of EU GHG emissions.50 Statistical Report 2018 - Refining
FIG.39 CO2 EMISSIONS TREND BY SECTOR - EU28
Source: European Environment Agency
(1990=100%)
250
200
Unit: Emissions (% of 1990 level)
150
100
50
0
1990
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2013
2014
2015
ENERGY SUPLY AGRICULTURE CO2 emissions per sector have generally
been declining since 2007. Industry
INDUSTRY WASTE (processes and manufacturing) CO2
emissions decreased sharply over the
TRANSPORT INTERNATIONAL SHIPPING period 2007-2012 and are now between
30% and 38% below the 1990 levels. CO2
RESIDENTIAL INTERNATIONAL AVIATION emissions from transport have also been
steadily decreasing since 2008 except for
the ones from international aviation that
are slightly increasing since 2011.Refining - Statistical Report 2018 51
FIG.40 EU REFINING SECTOR
CO2 EMISSIONS AND ALLOWANCES
Source: Concawe and TOTAL
160,000
140,000
120,000
Unit: Million T CO2eq
100,000
80,000
60,000
40,000
20,000
0
2013 2014 2015 2016 2017
FREE ALLOWANCES (million T CO2eq) VERIFIED EMISSIONS (million T CO2eq)
The chart shows that the EU refining sector is facing a full Where emissions related to electricity production are excluded,
systematic shortage across the first 4 years of the EU ETS the shortage remains in the order of 15 to 20%.
phase 3 (2013-2020). This shortage can be estimated at about
27% (free allowances divided by the verified emissions).52 Statistical Report 2018 - Refining
FIG.41 CO2 EMISSIONS PER CAPITA/REGIONS
Source: International Energy Agency, WEO 2017
2016 2040
14
11.9
12
Unit: CO2 emmissions per capita
10
9.0
8.3 8.5
7.6 7.8
8
6 5.7
3.9 3.7 3.9
4
2.4 2.4
2
1.0 0.9
0
Europe North Central Africa Middle East Eurasia Asia Pacific
America and South
America
CO2 emissions vary significantly between regions falling in
Europe and North America and increasing in Middle East,
Eurasia and Asia Pacific.Refining - Statistical Report 2018 53
FIG.42 MAIN SOURCE SECTORS IN 2015 OF NOX
Source: European Environmental Agency
1% WASTE
7% NON-ROAD
5% AGRICULTURE
TRANSPORT
3% INDUSTRIAL PROCESSES
AND PRODUCT USE
12% ENERGY USE
IN INDUSTRY
14% COMMERCIAL, 39% ROAD
INSTITUTIONAL TRANSPORT
AND HOUSEHOLDS
19% ENERGY PRODUCTION
AND DISTRIBUTION
NOX is main contributor to the air quality problems found in in 2015, some other sectors such as energy production and
a number of urban areas in the EU. Whilst the road transport distribution also contribute to the air quality challenge.
sector is the largest contributor with 39% of NOX emissions54 Statistical Report 2018 - Refining
FIG.43 QUALITY OF REFINERY WATER EFFLUENT
OIL DISCHARGED IN WATER
Source: Concawe
50 30.00
Unit: Oil discharged per reported throughput (g/tonne)
45
25.00
Unit: Oil in water discharge (ktonnes/yr)
40
35
20.00
30
25 15.00
20
10.00
15
10
5.00
5
0 0.00
1969 1974 1978 1981 1984 1987 1990 1993 1997 2000 2005 2008 2010 2013
Year of
Survey
OIL DISCHARGED WITH AQUEOUS EFFLUENTS (ktonnes/yr)
OIL DISCHARGED PER REPORTED THROUGHPUT (g/tonne)
Over the years, the EU Refineries have significantly improved absolute amount discharged and the amount expressed
the quality of refinery water effluent. The amount of oil relative to the volume of feedstock processed (throughput)
discharged in effluents from reporting installations continued and the refining capacity of the installations.
to decrease to extremely low levels – both in terms of theRefining - Statistical Report 2018 55
FIG.44 EVOLUTION OF GAS PRICES
Source: BP Statistical Review of World Energy 2017
12
UK prices from ICIS Heren Energy
10
US prices from Energy Intelligence Group
Unit: Gas prices in $/MBtu
8
6
4
2
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Since 2009, the US industry gained a significant competitive revolution. The 2016 prices in the UK were double the average
advantage over the EU industry as a result of the shale oil of US gas prices.56 Statistical Report 2018 - Refining
FIG.45 EVOLUTION OF END-USER
ELECTRICITY PRICES FOR INDUSTRY
Source: International Energy Agency
250
Japan
US
OECD Europe
200
150
100
50
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2 2017
Over the past few years the US industry gained a significant Nevertheless, since mid-2014, EU electricity prices dropped
competitive advantage as a result of low electricity prices. as a result of lower crude and gas prices and the gap with
While European industry faced an 80% energy price increase US refiners has been significantly reduced. This situation is
between 2005 and 2014, the price of electricity for the however, according to experts, due to remain overtime and the
US industry only increased by 20% over the same period. EU should face again higher electricity prices.Refining - Statistical Report 2018 57
FIG.46 CHEMICAL INDUSTRY RAW MATERIAL USE
Source: ICIS/CEFIC
100%
8 9 9 8 8 7 8 8 8 8 11
90%
14 14 14 13 16 14
19 22
80% 25 24 20
70%
60%
50%
70 69 69 72 70 73
40% 68 65 63 63 63
30%
20%
10%
8 7 7 7 6 6 6 5 4 5 6
0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GAS OIL NAPHTHA LPG ETHANE
The EU refining sector is closely integrated with the feedstock relies on refined products, such as naphtha and
petrochemical sector. A large part of the petrochemical petroleum gases.Meet the
young refiners
#YoungRefiners www.youtube.com/fuelseurope
Annual Review
2016-2017Marketing Infrastructures - Statistical Report 2017 59
FIG.47 BIOFUELS BLENDING TARGETS BY COUNTRY
Source: National Legislation (NREAP), EEA, ePure, FuelsEurope
Unit: Percentage
30
Ethanol Biodiesel Overall
25
Mandate E/V Mandate E/V Mandate E/V
25
Austria 3.4 E 6.3 E 5.8 E
Belgium 8.5 V 6.0 V - -
Bulgaria 8.0 V 6.0 V - -
20 19
Croatia 6.9 E 3.9 E 5.9 E
Cyprus - - - - 2.4 E
15 Czech Republic 4.1 V 6.0 V 10.0 E
Denmark - - - - 5.8 E
11 Estonia - - - - - -
10
10 Finland - - - - 15.0 E
France 7.5 E 7.7 E - -
Germany - - - - - -
5 4 Greece - - - - 5.8 E
Hungary 4.9 E 4.9 E - -
Ireland - - - - 8.7 E
0 Italy - - - - 7.5 E
MS WITH MS WITH MS WITH MS WITH MS WITH
AT LEAST ALL 3 OVERALL BIODIESEL BIOPETROL Latvia - - - - 5.0 E
1 TARGET TARGETS BIOFUEL TARGET TARGET
Lithuania 5.0 V 7.0 V - -
TARGET
Luxembourg - - - - 5.2 E
Malta - - - - 8.5 E
A compromise agreement on the RED II for the Netherlands - - - - 8.5 E
period 2021 to 2030 was reached between Poland - - - - 7.5 E
the Council and the European Parliament in Portugal 2.5 E - - 9.0 E
June 2018. It will oblige fuel suppliers to blend Romania 8.0 E 6.5 E - -
in advanced biofuels and the use of other Slovakia 5.9 E 9.7 E 7.2 V
renewable energies to achieve the renewable Slovenia - - - - 7.5 E
energy use target in transport. The use of first Spain - - - - 6.0 E
generation biofuels has been capped, while the Sweden - - - - - -
high risk indirect land change first generation United Kingdom - - - - 7.3 E
biofuels will progressively be phased out.
Note: = Energy
E
V = Volume
MS = Member State60 Statistical Report 2018 - Marketing Infrastructures
FIG.48 VEHICLE MARKET PENETRATION
IN EU-15*
Source: Emisia/ACEA
1.4% OTHER THAN ELECTRIC
2.9% HYBRID ELECTRIC 1.5% ELECTRICALLY CHARGEABLE
VEHICLES (HEV) VEHICLES (ECV)
44.8% GASOLINE 49.4% DIESEL
Overall in 2017, 49.4% of all new passenger cars registered in *EU-15: Austria, Belgium, Denmark, Finland, France, Germany,
EU-15 ran on diesel and 44.8% on gasoline, while hybrid electric Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
vehicles (HEV) accounted for 2.9% of new cars, electrically Spain, Sweden and the United Kingdom
chargeable vehicles (ECV) for 1.5% and other alternative fuels
(such as LPG, natural gas and E85) for 1.4%. Despite tax
incentives introduced by some EU Member States, the uptake
of alternative vehicle technologies remains still limited.Marketing Infrastructures - Statistical Report 2018 61
FIG.49 ALTERNATIVE FUEL VEHICLES ACCOUNTED FOR
5.6% OF TOTAL PASSENGER CAR REGISTRATIONS
IN THE EU IN 2017
Source: ACEA
Other Alternative Fuel Battery Electric
Vehicles (AFV) Vehicles (BEV)
11%
Plug-in
Hybrid
24% Electric
14% Vehicles
94.90% 5.60% (PHEV)
Diesel/Petrol Alternative Fuel
Vehicles Vehicles Total number
registered in 2017
849,343
51%
Hybrid Electric
Vehicle (HEV )
Electric cars are slowly penetrating the EU market. These From the total of new alternative fuel vehicles registration,
include battery electric vehicles (BEV), plug-in hybrid 11% are Battery Electric Vehicles. This represents only 0,6%
electric vehicles (PHEV) and electric vehicles with a range of the new vehicles registrations.
extender (REEV).62 Statistical Report 2018 - Marketing Infrastructures
FIG.50 ALTERNATIVE-FUEL VEHICLES AS A PROPORTION
OF THE TOTAL FLEET IN THE EEA-33
IN THE PERIOD 2005-2016
Source: European Environment Agency
6
Unit: Percentage of the total fleet
5
4
3
2
1
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
PASSENGER CARS BUSES LIGHT COMMERCIAL VEHICLES
According to the most recent estimates, the number of although it represents a minor proportion (0.11%) of total
alternative fuel passenger cars as a proportion of the total passenger car fleet numbers.
fleet has oscillated around 5% over the last five years, with
liquefied petroleum gas (LPG) cars making up the largest *EEA-33 - EU 28 + Iceland, Liechtenstein, Norway,
proportion. The number of electric vehicles (EVs) has grown, Switzerland & TurkeyMarketing Infrastructures - Statistical Report 2018 63
FIG.51 NUMBER OF PETROL STATIONS IN EUROPE
END OF 2017
Source: National Oil Industry Associations, FPS Economy, DG Energy
Number Number
of petrol of petrol
COUNTRY stations COUNTRY stations
Austria 2 685 Italy 20 500
Belgium 3 109 Latvia 610
Bulgaria 3 000 Lithuania 822*
Croatia N/A Luxembourg 236**
Unit: Number of petrol stations
Cyprus 310 Malta 75
Czech Republic 3 940 Netherlands 4 164
Denmark 2 013 Poland 6 640
Estonia 510* Portugal 3 113
Finland 1 848 Romania 2 100*
France 11 147 Slovakia 921
Germany 14 478 Slovenia 553*
Greece 6 140 Spain 11 495
Hungary 1 980 Sweden 2 970 ***
Ireland 1 789 United Kingdom 8 422
EU TOTAL 74 340
Norway 1 817
Switzerland 3 382
Turkey 12 653
TOTAL NO + CH + TR 3 382
TOTAL 77 722
EU * Numbers for 2016 There were over 77 000 petrol stations in the EU, Norway,
** Numbers for 2015 Switzerland and Turkey operating in 2017, fuelling some 250
NON EU
*** Estimate million cars and over 34 million trucks.64 Statistical Report 2018
About FuelsEurope
FuelsEurope is a division of the European Petroleum Refiners FuelsEurope aims to inform and provide expert advice to the EU
Association, an AISBL operating in Belgium. This Association, institutions and other stakeholders about European Petroleum
whose members are all 41 companies that operate petroleum Refining and Distribution and its products in order to:
refineries in the European Economic Area in 2017, is comprised
of FuelsEurope and Concawe divisions, each having separate n
Contribute in a constructive way to the development of
and distinct roles and expertise but administratively consolidated technically feasible and cost effective EU policies and
for efficiency and cost effectiveness. legislation.
Members account for almost 100% of EU petroleum refining n Promote an understanding amongst the EU institutions and
capacity and more than 75% of EU motor fuel retail sales. citizens of the contribution of European Petroleum Refining
and Distribution and its value chain to European economic,
technological and social progress.Statistical Report 2018 65
Disclaimer
We have made every attempt to ensure the accuracy and IEA Disclaimer - Global Indicator Refining Margins are
reliability of the information provided in this report. However, calculated for various complexity configurations, each
the information is provided “as is” without warranty of any kind. optimised for processing the specific crude(s) in a specific
Neither FuelsEurope nor any of its member companies accept refining centre. Margins include energy cost, but exclude
responsibility or liability for the accuracy, completeness, other variable costs, depreciation and amortisation.
legality, or reliability of the information contained herein. We
shall not be liable for any loss or damage of whatever nature Consequently, reported margins should be taken as an
(direct, indirect, consequential, or other), which may arise as a indication, or proxy, of changes in profitability for a given
result of use of the information herein. refining centre. No attempt is made to model or otherwise
comment upon the relative economics of specific refineries
Quoting from the review - The redistribution or reproduction running individual crude slates and producing custom product
of data whose source is Platts or Wood Mackenzie is strictly sales, nor are these calculations intended to infer the marginal
prohibited without prior authorisation from either Platts or values of crude for pricing purposes.
Wood Mackenzie.66 Statistical Report 2018
FuelsEurope membersFuelsEurope
Boulevard du Souverain, 165 I B-1160 Brussels I Belgium
Phone: +32 (0)2 566 9100 I Fax: +32 (0)2 566 9111
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