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Statistical Review 2013

Statistical Review

www.ukpia.com

2013

UKPIA Statistical Review 2013


About UKPIA
UKPIA represents the non-commercial interests of and speaks for nine companies involved in the UK downstream
industry, whose activities cover refining, storage and distribution, and marketing of petroleum products.
Our members are:

Overview
Section

Overview

Introduction and
Overview

Introduction and overview of UK refining.

Economic
Contribution

The refining and marketing sector is a major


contributor to the UKs economy.

Refineries

Road Transport
Fuels

Biofuels
Centrefold

There are seven operational crude oil refineries in


the UK, which supply the equivalent of 85% of the
UKs oil product demand.
Petrol and diesel supply the vast majority of road
transport energy requirements.
The introduction of biofuels is the biggest change
to road fuels in decades.

Page No

Introduction and Overview

Contents

12
16
22
25

Oil the driving force behind modern life.

28

Other Products

Petrol Prices

Diesel Prices

Filling Station Stats


and Crime Data

Air Quality

10

Greenhouse
Gases

Emissions of carbon dioxide from road transport


pre km driven have fallen and the oil industry expects
them to continue to fall.

42

11

Process Safety

The Process Safety Performance Indicators for the


Refining and Petrochemical Industries is one of the key
objectives of UKPIAs commitment to process safety.

44

12

Occupational
Health and Safety

A wide variety of fuels are produced,


and the jet fuel market is expanding.
Pre-tax petrol prices in the UK are consistently
amongst the lowest in Europe.
Pre-tax diesel prices in the UK are consistently
amongst the lowest in Europe.
The number of filling stations in the UK is declining;
there are now around 8,608. Service station crime
costs the industry around 26m a year
UK air quality is improving; in part this is due to
higher quality fuels and improved vehicle technology.

The refining and marketing sector is one


of the safest industries in the UK.

30
32
34
38

47

All data is updated as far as possible. Where data is not available the most recent statistics have been used.

Statistical Review 2013

Introduction and Overview

Introduction from the Energy Minister

I welcome the publication of UKPIAs eleventh Annual Statistical Review of the UK oil market, which is a good example of
the long running and constructive relationship between government, UKPIA and its member companies.

The downstream oil industry in the UK continues to face difficult challenges. In particular, the imbalance in product supply
and demand, along with tough global competition, is taking its toll on the sustainability of the UK sector.

This government is committed to supporting the downstream oil industry, and to this end is working with UKPIA and other
stakeholders to review the refining sector and to consider the impact of the regulatory framework on competiveness. The

review will consider what role the UK oil refining sector should have in the transition to 2050 and in maintaining UK energy
resilience. Significantly, we are engaged at EU level on the future of European refining through our participation in the EU
Refining Forum and await the outputs of the Refining Fitness Checks with interest.

We have also made progress, with industrys support, in reviewing our oil stockholding arrangements. In support of this

we recently published a consultation on the Future Management of the Compulsory Stocking Obligation in the UK, which

considered whether the present obligation for stock-holding is the most efficient model or if an alternative system, such as

a centralised stocking entity would be more appropriate. We intend to publish a Government Response with proposed way
forward by the end of the year.

Without a doubt, sound, factual evidence has underpinned many areas of policy development and accurate statistics are
critical in understanding both the production of our oil products and how trade contributes to our energy security. This
Government greatly appreciates the work that UKPIA and its members do.
Michael Fallon

Energy Minister
June 2013

background in the EU and the UK

stocking agency with compulsory

The recently published independent

UKPIA and the industry remain,

sponsored by UKPIA to inform

with government to help find the

that adds enormous costs.

report from IHS Purvin & Gertz,

DECCs review of the Refining Sector


in the UK, highlights the problem.

Long-term net refining margins are

projected to average around $2.6 per


barrel. However, this masks the huge
potential cash impact of additional
I am delighted to be writing the

Presidents introduction to the UKPIA


Statistical Review 2013.

Before touching upon some of the

challenges that face our industry, it

is worth pointing out the value of the


information in the Review. As usual,
it gives an interesting insight into

some of the facts and figures about


the UKs energy use particularly in

transport, but also the many areas


where our member companies

continue to play a crucial role in


supplying other feedstocks and

products that support everyday life.


As in previous years, I am pleased
to acknowledge the work of the

DECC (Department of Energy and


Climate Change) statistics group,

UKPIAs Secretariat and our member


companies for bringing all this data
together.

Although 2012 saw a brief respite

for oil refiners as a result of positive


refining margins during part of the
year, the underlying conditions in

the UK, and indeed those in the rest


of the EU, remain weak. Refineries

continue to operate under enormous


pressures through a combination

of a tough commercial climate with

low margins, reduced demand for oil


products, competition from overseas
refineries, structural imbalances in
supply/demand and a legislative

Statistical Review 2013

capital and operating expenditure in

the period 2013-2030 of 11.4 billion,

which is required just to meet UK and


EU legislative measures. Most of this

expenditure would not be recoverable


from consumers. Furthermore the
cost impacts of the Fuels Quality

Directive and the Energy Efficiency


Directive are not yet fully defined

and were not included in the reports


analysis.

The report concluded that no industry


would bear such a mandatory

investment burden for no return,

and a consequence could be the

closure of more UK refineries and


greater reliance upon imports for

key products such as diesel and jet


fuel. The UKs import dependency
in respect of these products is

already at a high risk level based on


the International Energy Agencys
MOSES methodology.

I also welcome the Energy Ministers

introduction to this years Review. His


department is closely engaged in the

membership for obligated companies.

as ever, willing to work closely

best solutions to our future energy

challenges. We very much welcome

the detailed and valuable report from


IHS Purvin & Gertz to help to inform
DECCs review of oil refining and

resilience of the downstream sector.

However, time is not on our side. We


look forward to an early response

from Government to the study and


also their support for an urgent

analysis of EU legislative impacts


in 2013 through the legislative

Fitness Checks being undertaken


at the EU level via the Refining

Forum established by the European


Commission.

In addition to this important work on


the refining regulatory environment,
UKPIA continues to actively share

best practice and lessons relating to


Process Safety, and the sector level
performance indicators included

within this review are one of the many


tools that we use to encourage this

activity. We are also working closely


with the Downstream Oil Distribution
Forum to implement the Petroleum
Driver Passport scheme which

aims to set a minimum standard of


competency for petroleum tanker

drivers, promoting safety at both our

terminals and at the point of delivery.

major issues affecting refining and

Finally, I should like to record our

whole and the impact upon security

input into all the valuable work of

indeed the downstream industry as a


of energy supply and resilience.

Good progress has been made with


reviewing the UKs oil stockholding

system; we welcome the consultation


on proposed options and support

the concept of an independent oil

Introduction and Overview

Introduction from the President

thanks for everyones continuing

UKPIAs committees and the work of


UKPIA generally.

Gary Haywood
June 2013

Introduction and Overview

Processing Crude Oil in a Typical UK Refinery


Many refineries in the UK came on stream in the 1950s and 1960s. Since that time they have evolved to meet the

growing demand for transport fuels and reducing demand for heating and power generation from oil. The composition
of fuels has also changed over recent years to reduce the environmental impact of their use. In addition to transport
fuels, refineries produce a wide variety of important feedstocks used in the manufacture of other products, such as
petrochemicals, lubricating oils, solvents, bitumen and petroleum coke for aluminium smelting.

No two refineries are identical. They share common technology such as crude distillation, but each UK refinery takes a
slightly different route to achieve the common goal of extracting maximum value from each barrel of crude oil processed.

Typical refinery process units


Fuel Gas

for refinery
boilers &
furnaces

Sulphur
Recovery

Sulphur

Isomer

Crude
oil

Crude
Distillation
Unit

LPG

Unifiner
Reformer

Petrol

Merox
Kerosene
Hydrotreater

Vacuum
Distillation
Unit
Gas
Liq Petroleum Gas
Petrol components
Kero components
Diesel components
Fuel oil components

Fluid Catalytic
Cracking Unit

Treating
Units

Isomerisation
Unit

Derv/
Heating oil

Alkylation
Unit

Visbreaker
Unit

down into five main processes:

Distillation which separates crude


oil into different refinery streams
Conversion and reforming which
improve the quality of these streams
and adjusts the yields to meet
market demand
Desulphurisation which reduces
the sulphur in the streams to the
required level
Blending of the refinery streams to

produce the final products meeting

current regulations and specifications

Waste treatment ensures that all


waste meets current regulations

Merox

Fuel oils

Refinery operations can be broken

and standards

Import
Butane

Distillation

as propane and butane to heavier,

The starting point for all refinery

They are then sent on to other refinery

operations is the crude distillation


unit (CDU). Crude oil is boiled in a
distillation column, which separates the
crude down into fractions with different
boiling points. The crude oil enters the
column near the bottom and is heated
to around 380C. The lighter fractions
are vaporised and rise up the column.
As they rise, they are cooled by a
downward flow of liquid and condense
at different boiling points. This enables
fractions with different boiling points to
be drawn off at different levels in the
column. These fractions range from
lighter, low boiling point gases such

higher boiling point diesel and gas oil.


units for further processing. What is left
over at the bottom of the column is a
liquid residue, which requires further
processing to be turned into more
valuable, lighter products or blending
components. This residue is first
sent to a second stage of fractional
distillation in the vacuum distillation
unit (VDU). This unit performs the
distillation under reduced pressure
which allows the distillation of the
crude residue at lower temperatures.

The streams are then sent on to the

In the visbreaker, the heavy fractions

the VDU separates into different

catalytic reformer and isomer units for

are held at high temperature until they

components from gas oil to a heavy

processing to raise the octane number

become less viscous. This stream is

liquid residue.

of the petrol by modifying its molecular

then blended into other fuel oil product

structure. The reformer produces a

streams.

The streams from the CDU and VDU


are then processed further by the
remaining refinery units to provide the
high quality products that consumers
expect and that comply with all
relevant legislation.

large amount of hydrogen as a


by-product, and this is recycled for
use in desulphurisation (hydrotreater)
units.

Distillation does not produce enough


of the lighter, more valuable products
such as petrol that the market wants.
Therefore conversion units eg fluidised
catalytic cracking (FCC) are used to
process some of the streams from the
vacuum distillation column with the
aim of turning the heavy components
into lighter transport fuels. Reforming
units are used to upgrade the octane
of the petrol components produced
from the CDU.
Desulphurisation units are then used
to remove sulphur from the products.
This enables the products to meet
todays tighter fuel specifications.
Extra desulphurisation will be required
to allow the refinery additional
flexibility to process higher sulphur
sourer crude oils. Reliance on low
sulphur crude oils alone limits the
flexibility of a refinery.

Main Products

unit, the isomerisation unit and the


alkylation unit are blended to meet fuel
specifications and current regulations.
Jet fuel/kerosene streams from

distillation are cleaned in the merox


unit. This uses a caustic wash
and additives to remove sulphur
compounds and to inhibit gum
formation.
Diesel/heating oil streams are

processed in the hydrotreater, which


removes sulphur and other unwanted

hydrogen sulphide from the units


which remove sulphur from product
streams. The hydrogen sulphide is
then reacted with oxygen to give solid
elemental sulphur and water vapour.
After treatment, this sulphur is sold to
other process industries.
All other waste streams are treated
according to the current regulations.

units such as the reformer. The diesel/


heating oil streams are separately
blended to meet fuel specifications
and current regulations.
The lighter fuel oil streams from the
VDU are processed in the FCC unit
whilst the heavier residues from
the VDU can be processed in the
visbreaker.
In the FCC unit, heavy oils are reacted
at high temperature with a catalyst
which breaks the heavy fractions

Petrol streams from the distillation

in an isomerisation or alkylation unit

This unit strips out excess sulphur

components. The FCCs products are

Statistical Review 2013

The sulphur recovery unit takes waste

recycled hydrogen from other process

are then cleaned in a merox unit

sulphide and ammonia.

Desulphurisation and
Waste Treatment

(desulphuriser) is supplied with

and the FCC unit.

and nitrogen compounds as hydrogen

and specifications.

catalyst. The hydrotreater

into more valuable lighter products.

process are cleaned in the unifiner.

fuel oil meeting current regulations

compounds using hydrogen and a

LPG (liquified petroleum gas) is taken


directly from the crude distillation unit

different units are then blended to give

Finally the petrol streams from the


reformer, fluidised catalytic cracking

Conversion, Reforming,
Desulphurisation and
Blending of Different
Streams

The fuel oil components from the

Introduction and Overview

Using the same approach as before

The LPG and petrol components


and some of the LPG is converted
into high octane petrol blending
blended into petrol, LPG, diesel/gas
oil and fuel oil product streams.

Introduction and Overview

Refineries in the UK
The members of UKPIA run the seven major operating refineries in the UK, which are situated around the coast for
ease of crude tanker access. They supply about 88% of the inland market demand for petroleum products. The UK
has the fourth largest total refining capacity in the EU and some UK refineries are among the largest in Europe.

Over many years, the refining sector has sought to minimise its impacts upon the environment and improvements
continue to be made to reduce emissions.

Section 2 covers refining in more detail, with key figures on production, changing product demand and refinery
emissions.

Petroineos Grangemouth

Essar Stanlow

Total Lindsey
Phillips66 Humber

Murco Milford Haven


Valero Pembroke

ExxonMobil Fawley

Distribution of Products
Around 50 major oil terminals are supplied by pipeline (51% of the volume), rail (15%) and sea (34%) from UK refineries.
There is an extensive network of private and Government owned pipelines in the UK, with around 3,000 miles of pipeline
currently in use.
The 1500 miles of privately owned UK pipeline network carries a variety of oil products, from road transport fuels to heating
oil and aviation fuel. It provides an efficient and robust distribution system across the UK and directly provides jet fuel for
some of the UKs main airports. It can take several days for fuel to travel from the refinery to the terminal by pipeline. At the
terminal, products are stored in large above-ground tanks and are transported to the filling station by road tankers.
The Government also has an oil pipeline system which is largely designed to meet the needs of military airfields.

Introduction and Overview

Privately owned oil pipelines in England and Wales


U.K.O.P.
Shell
BP
Valero
Total

STANLOW

ESSO PIPELINE SYSTEM

NOTTINGHAM

MAINLINE PIPELINE SYSTEM


Esso
Valero
Total
Shell
WALTON GATWICK PIPELINE
BP
Shell
Valero

L.O.R.

MANCHESTER

KINGSBURY
BIRMINGHAM
NORTHAMPTON

PEMBROKE AND
MILFORD HAVEN

HEATHROW
AVONMOUTH

BUNCEFIELD

GATWICK

WEST LONDON PIPELINE


BP
Shell
Valero
Total

CORYTON/THAMES

WEST LONDON
PURFLEET

FAWLEY

FINA-LINE
Total

Government oil pipelines in England and Wales


INGRESS LOCATIONS:
RAWCLIFFE

KILLINGHOLME
(Total, Phillips 66, BP)
BACKFORD
(Shell)

KILLINGHOLME

BLACKMOOR

BACKFORD

MISTERTON
BRAMHALL
HETHERSETT

AVONMOUTH
HAMBLE
(BP, Esso)

CLAYDON

ISLE OF GRAIN
(BP, BA)
THAMES HAVEN
(BP, Shell, O.I.K.O.S.)

SAFFRON
WALDEN

SANDY

STANSTED
PURTON
HALLEN
AVONMOUTH

ALDERMASTON

THAMES
HAVEN
WALTON

ISLE OF GRAIN

HAMBLE

Product Distribution
The UK has a number of oil-company and independently-owned terminal facilities, linked either by pipeline, rail or road.
Around a half of all terminals are supplied by pipelines, 15% by rail and around a third by sea.
The south of the country heavily relies on pipelines that connect Fawley, Coryton, Stanlow and Milford Haven refineries
with distribution terminals serving major demand centres. The north tends to be more dependent on road transport with
large road terminals at Stanlow and on the Humber. Scotland is dependent on supplies from Grangemouth and Northern
Ireland on imports delivered to the Belfast port.

Statistical Review 2013

Introduction and Overview

Key Indicators for 2011 and 2012


2011

%
CHANGE
10/11

TREND
2011

Contribution to balance of payments

4.3bn

+62%

Import volume of petroleum products

27.4mte

-1%

Export volume of petroleum products

36.1mte

+6%

2012

%
CHANGE
11/12

TREND
2012

Duty from road fuels

26.6bn

-0.7%

Average duty rate, ppl

58.0bn

-0.3%

Average VAT rate, ppl

23.2bn

+0.8%

-3.1%

-0.8%

Total demand

67.3mte

-3.1%

Petrol*

13.2mte

-5.0%

Diesel*

26.6mte

+2.7%

Fuel oil

1.7mte

-16.7%

Jet Fuel

11.1mte

-2.4%

Burning oil

3.3mte

+0.4%

Total throughput

68.9mte

-8.2%

Utilisation Rate

78.9%

-3.0%

NW Europe Cracking refining margin per bbl

$4.28

N/A

COMMENT

Economic indicators in 2011


Contribution to balance of payments
continued to increase in 2011 as a result of a
slight increase in exports and minor decrease
in imports. Rising prices of finished products
however made the greatest impact in the
change to the overall contribution to BoP.

COMMENT

Duty and VAT in 2012


The duty rate remained fixed throughout 2012
whilst VAT contribution increased only as a
reflection of rising crude prices. As demand
for finished products also fell, overall duty
from road fuels declined for another year.
Product demand has declined by almost 18%
in comparison to 2005.

Oil Product Demand in 2012


Product demand growth

Overall demand continued to fall in 2012,


and now stands at its lowest point in over 20
years. Nearly all the main petroleum products
recorded a fall in volume demanded in
2012, although diesel showed some signs of
recovery relative to other transport fuels. The
petrol market however continues to fall and
has now lost over a third of volumes relative
to the turn of the decade.

Refining Industry
Total throughput and utilisation rate fell
again despite previous years marginal
improvement. North Western European
refining margins improved relative to recent
years record lows.

*Biofuels in Petrol and Diesel not included.

10

Petrol pump price (avg)

136.1p

+1.8%

Diesel pump price (avg)

142.5p

+2.5%

Number of retail outlets (year-end)

8608

-1.1%

Number of supermarket sites

1306

+3.1%

11m litr

-1.5%

Average throughput of filling station

4,212 klitr

-1.2%

Demand for road fuels (billion litres)

43.8bl

-0.6%

Refinery CO2 emissions

16.3mte

-0.6

Refinery SO2 emissions

56kte

-5.1

Refinery NOX emissions

22.2kte

-6.6

Road transport PM10 emissions

25.3kte

-3.4

Road transport NOX emissions

378kte

+4.7

Road transport CO2 emissions (mtCO2)

111mt

0.0%

Road transport Methane emissions

3.4kte

-20.9

Av. throughput of supermarket filling stations

Although the number of UKs retail sites


continues to fall decline in response to
market conditions, as a result average
volume throughput per site has gradually
increased in recent years, particularly in the
supermarket sector. However, as a result
of the current economic climate, a decline
in total road fuel demand has dampened
average throughput per site for both
supermarkets and average filling station.

Introduction and Overview

Retail Indicators

Air Quality (2010 data)*


Most air quality indicators continued to
improve in 2010 as steps to reduce
emissions were continued despite the
difficult business climate. The RTFO was
amended (in line with the EU Renewable
Energy Directive) to introduce mandatory
Carbon and Sustainability criteria for all
biofuels used in the manufacture of road fuel.

*2010 data only available at time of publication.

11

1. Economic Contribution and Refinery Economics

1. Economic Contribution and Refinery Economics

he UK oil and downstream refining industry is

return remaining on average, 8% in the period from

one of the largest in Europe, comprising of 7

1997 to 2011 (graph 1.4). The 2008 credit crisis added to

operating refineries, 50 terminals and extensive private

the industrys continued pressures, from volatile crude

and government pipelines carrying over 30 million

prices to increased motor fuel taxation and rise in VAT.

tonnes of fuel each year. The sector has undergone

Reported margins have shown some signs of recovery,

a number of changes over the years. During the 70s

moving from to $0.12 per barrel in 2011 to $4 per barrel

and 80s refiners moved from atmospheric distillation

in 2012 although hydrocracking margins remained

towards the production of gasoline and distillate to take

negative in 2012 - whilst crude utilisation rate fell below

advantage of the changing economic and legislative

80%, as shown in graph 2.6.

landscape. And more recently, refiners have had to


increasingly adapt and focus on reducing emissions

The oil refining and marketing industry plays a very

due to increased environmental legislation and tighter

important role in the UKs economy, supporting the

fuel specifications, and changing consumer needs with

employment over 88,000 people at refineries, head

the growth of diesel demand driven partly by fiscal

offices, forecourts and as contractors, and supplying

policy.

over 33% of the primary energy used in the UK from a


secure supply base. Over 100 million litres of petrol and

Despite the strong economic growth seen in the late

diesel are sold in the UK each day to an estimated 4

90s and early 00s, refining margins continued to fall

million customers. Today, our industry collects around

in both the UK and North West Europe as a whole.

37 billion in fuel duty and VAT each year, which

Increased environmental and energy policy reforms

contributes around 6% of the Exchequers total receipts.

and taxes squeezed the sector further, with rates of

1.1 Contribution to Balance of Payments


Contribution to Balance of Payments from
Imports and Exports of Petroleum Products
(excluding crude)

Contribution (m)

4,000

3,000
2,000
1,000
0

5,000

-1,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

-2,000




Source: DECC

12

The graph illustrates the value of imports and


exports of petroleum products

Oil refining has historically been a major contributor


to the UKs balance of payments
However, the growing demand for diesel and jet fuel
has resulted in the UK becoming increasingly reliant
on large-scale imports of diesel and jet fuel; a 100%
increase of diesel imports and a 70% increase for
jet fuel between 1999 and 2010
Although net export volumes are similar to those in
2010, the graph indicates that the overall monetary
contribution to the UK economy has almost
doubled, which as a result pushes the value of
finished products up (including those exported)
Exported oil products, on the other hand, are
heavily dependent on international markets. As a
result, exports tend to have a more unpredictable
pattern
Oil products will remain central to the nations
energy needs for decades to come, alongside a
developing role for alternative fuels and energy
sources

1.3 Duty from Road Fuels

GDP Growth vs. Oil Product Demand Growth

Duty from Road Fuels

6%

30

4%

25

2%
2000

-2%

2002

2004

2006

2008

2010

2012 p

Duty (bn)

20

0%

15

10

-4%
-6%

Product Demand (% Growth)

GDP (% Growth)

94/95 96/97 98/99 00/01 02/03 04/05 06/07 08/09 10/11 12/13

Source: DECC/ONS
l

Oil product demand growth is a key indicator to an


economys health, and reflects loosely both cyclical
and growth trends

The impact of the 2008 credit-crisis can clearly be


seen by both the GDP and product demand growth
curve; they indicate a deep recession in 2008 and
another downward trend since 2011

Duty(bn)

02/03

04/05

06/07

08/09

10/11

11/12

12/13

Change
y/y%

22.10

23.5

23.6

24.6

27.3

26.8

26.6

-0.7%

Source: HM Treasury/HMRC

The 2012 Budget estimated fuel duty receipts for


2012/13 at 26.6 billion. In addition, around 10.2
billion was collected as VAT on road fuels

1. Economic Contribution and Refinery Economics

1.2 Annual Oil Trade

This combined figure is around 6.5% of total public


sector current receipts and almost equivalent to the
countrys total spending on defence

1.5 Gross Sales

1.4 Average Return on



Capital Employed

Gross Sales
120

1997-2011 Average Return on Capital Employed

100

Sales (bn)

30

ROCE (%)

25
20
15

40
20

UKPIA

Manufactu ring

Ser vices

1995

1998

2001

2004

2007

2010

Upstrea m Oil
Pro duction

Source: UKPIA/Office for National Statistics

 he average return on capital employed for


T
period between 1997-2011 was only 7.9% for the
downstream oil industry compared to 15% average
of the other three comparable industries

Over the same time period, manufacturing


industries ROCE was 9.8% on average, and that of
service industries was 15.7%

60

10
0

80

Source: UKPIA

In 2011, gross sales by UKPIA member companies


in the UK were 101.3 billion, including duty

This is an improvement compared to real numbers


from the previous year, partly as a result of rising
crude prices, and smaller impairment charges

Service industries include communications, hotels,


catering, distribution, transport and storage.

Statistical Review 2013

13

1.7 UKPIA Refinery Share



of Inland Consumption

Refining and Marketing Employment

UKPIA Refinery Share of Inland Consumption


% share of inland
consumption

25,000
20,000
Employees

1. Economic Contribution and Refinery Economics

1.6 Refining and Marketing



Employment

15,000
10,000

5,000
-

80
70

60

1996

1999

2002

2005

2008

2011

1995

Consumption

Source: UKPIA

The refining and marketing industry is a major


employer in the UK, with a little under 14,000 people
directly employed by UKPIA members in 2011

90

1997

1999

2001

2003

2005

2007

2009

2011

2001

2003

2005

2007

2009

2010

2011

Change
y/y%

88.3

90.0

91.2

89.7

88.9

85.90

87.60

2.0%

Source: UKPIA

UK refining makes a substantial contribution; 8,500


jobs in refining support 54,000 jobs in the extended
supply chain industries; expenditure by these
employees supports a further 25,500 jobs in the
wider economy, making an overall total of 88,000
jobs (Source: IHS Purvin & Gertz 2013)

In 2011, around 88% of inland oil consumption in


the UK was supplied by UKPIA member companies,
a slight increase on the previous year due to a rise
in total production capacity by refiners

This provided vital energy resilience and security


of supply to the nation along with the provision of
high quality fuels at competitive prices

1.8 Regional Refining Margins


l

Regional Refining Margins

30
27
24

Margin $/bbl

21
18
15
12

6
3
0

199 0

BP RMM

199 4
199 8
North-West Euro pe
US Nor th-West
Australia

200 2

200 6
201 0
US Mid-West
Mediterran ean

201 4

1990

1995

2000

2005

2010

2011

2012

Change
y/y%

6.54

4.00

7.22

13.39

10.44

15.28

18.85

23.4%

Source: BP Statistical Review of World Energy 2012/ BP Trading Conditions


Update
NB: RMM Refining Marker Margin Basis. The aggregate BP RMM is based on
BPs 2013 portfolio.

14

Refining is a highly cyclical business with poor


margins occurring in 1995, 1999, 2002 and most
recently, 2009/10

European and Asian refinery margins have been


significantly lower than those achieved by refineries
on the US Gulf Coast in recent years
The BP Global Indicator Margin uses generic
refinery configurations for a number of products to
calculate the average regional refining margin

1.10 Crude and Ex-Refinery


Prices

NWE Refining Margins


Crude and Ex-Refinery Prices 2012
60
55

2007

2009

Pence per litre

Margin $/bbl

5
4
3
2
1
0
-1
-2
-3

2011

Cracking Refining Margins

HSkimming Refining Margins

2007

2008

2009

2010

2011

2012

Cracking

3.94

3.56

2.06

2.30

0.12

4.28

H-skimming

-0.19

-0.62

-1.01

-0.54

-2.20

-0.30

Source: Wood Mackenzie


l

The underlying trend for European refining margins


over the last two decades has been cyclical as the
previous graph indicates, however, more recent
periods have shown much more severe cycles,
notably in 2011- a direct impact of the recession

2012 data indicate a trend towards recovery with


cracking margins improving from last years $0.12
per barrel to $4.28 per barrel
Although hydro-skimming margins continue to
be negative - around $-0.3 per barrel they have
improved significantly relative to the previous years
negative margin of $-2.2 per barrel

40
35

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Petrol

Diesel

Crude Oil

Source: Wood Mackenzie

45

30

50

Wholesale ex-refinery product prices tracked crude


closely throughout 2012

Crude oil is the main driver for prices of refined


products such as petrol and diesel and is reflected
in pump prices in the UK and globally

1. Economic Contribution and Refinery Economics

1.9 NWE Refining Margins

In recent years, diesel has been more expensive


than petrol with the differential narrowing by mid-
2012 but then again widening by the end of year
The UK and EU are net importers of diesel, a
product for which there is strong global demand

The refining margin is the difference between cost


of crude purchased and value of product sales
and is needed to cover fixed costs of operators and
maintenance, and to remunerate capital

Statistical Review 2013

15

2. Refineries

2. Refineries

here are seven major crude oil refineries operating

The current economic and legislative climate continues

in the UK, situated around the coast for ease of

to prove difficult for all European refiners, including

crude tanker access. Onwards distribution is achieved

those in the UK. The countrys utilisation rate in 2011

via an extensive pipeline system plus road, rail and sea

continued to decline, dropping below 79% - a 3% drop

transport.

from previous year. However, industry investments


have continued in the UK in spite of a challenging

The UKs crude feedstock is primarily low sulphur

economic backdrop, with Totals Lindsey Refinery

crude from the North Sea, although in recent years

having undertaken one of the largest investments of

there has been an increasing diversification trend.

2010/11 for a new diesel hydrotreater.

Imported crude accounted for 46% of total processing


in 2011, with UKs dependency on imports set to rise as

The current economic and financial downturn has also

domestic production declines - almost every year since

had direct impact on global demand for oil products.

1999.1 Europe is still the largest region from which the

Demand in the UK continues to be subdued as a result,

UK imports crude oil, with Norway continuing to be

combined with the drive to reduce emissions in the

the single largest source, whilst Africa accounts for

transport sector and improved vehicle efficiency.

approximately 10.5%.
1 PFC Energy report Downstream monitoring service: UK (December 2011)

2.1 UK Refineries

2.2 Number of Refineries


Number of Operating UKPIA Refineries

Petroineos Grangemouth

Essar Stanlow

Total Lindsey

Number of major ref ineries

20

Phillips66 Humber

15
10
5
0
197 1

197 7

198 3

198 9

199 5

200 1

200 7

201 3

Source: UKPIA
Murco Milford Haven
Valero Pembroke

ExxonMobil Fawley

Source: UKPIA
l

16

There are seven major crude oil refineries operating


in the UK which supply the bulk over 88% in 2011-
of the inland market demand for petroleum products
The refineries are situated around the coast and
most are connected to pipelines for product
distribution
The Petroplus Coryton refinery closed in June 2012

The number of major oil refineries in the UK has


fallen from a high of 19 in 1975 to 7 currently in
operation

There are two further smaller speciality refineries in


the UK producing bitumen and other products
In 2011, two of the eight refineries then operating
were sold; Chevrons Pembroke refinery to Valero
and Shells Stanlow refinery to Essar. Milford Haven
refinery remains on the market

2.4 Refinery Throughput

European Capacity 2000/2011


2000

2,5 00

Refinery Throughput
100

2,0 00

1,5 00
1,0 00
500

120

2011

Throughput (Mte)

Thousand barrels per day

3,0 00

Ger ma ny

Italy

UK

France

Spa in

80

60
40

20

Nethlnds Belg ium

Source: BP Statistical Review of World Energy 2012


l

2. Refineries

2.3 European Capacity

In 2010, according to the BP Statistics Publication,


the UK regained its position as the third largest
refining capacity in Western Europe and continues
to maintain its position with total refining capacity of
1.76 million barrels per day (not including
Coryton closure)

The change in position is a direct result of refinery


closures in France rather than an increase in
UK refining capacity, which in fact has continued to
steadily decline since 2004
l

There are 94 mainstream refineries in the EU

199 0

199 4

199 8

200 2

200 6

201 0

Source: DECC (DUKES)

Since the refinery closures in 1997, 1999, 2009, and


most recently 2012, UK refining throughput has
fallen from its late 90s peak of 97 million tonnes of
crude oil

UK refining throughput was around 69 million tonnes


in 2012 an 8% drop compared to the previous year
Throughput depends on product demand, capacity
and other factors such as timing of maintenance
shutdowns

Post closure of Coryton, the UK refining capacity


at the end of 2012 was 1.5 million barrels per day
(Source: IHS Purvin & Gurtz 2013)

2.6 Crude Capacity and


Ultisation

2.5 Refinery Energy



Efficiency

Crude Capacity and Ultisation

Refinery Energy Efficiency

100 ,00 0

Fuel used as % of throughput

85%

40,000

4
3

20,000

1
198 8

199 4

200 0

200 6

201 2

Refineries use the equivalent of between 5 and 6%


of throughput as fuel, to provide energy to refine
crude oil into products for consumers

More energy is required to meet the current high


demand for cleaner transport fuels and to meet
challenging environmental standards, but this has
been offset by improved energy efficiency at
refineries

90%

60,000

Source: DECC (DUKES)


l

95%

80,000

0
198 2

100 %

75%
200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1
Crude pro cessed
utilisati on rate

70%

Source: DECC (DUKES)

Statistical Review 2013

80%

The capacity utilisation rate is the value of total


production capacity which is actually being utilised
over a specific period of time

Crude oil capacity utilization rate is equal to crude oil


processed, divided by crude oil production capacity
UK refineries in 2011 had a combined utilisation rate
of a little under 79% - a 3% decline compared to the
previous year
Although the industry undergoes regular cyclical
declines, the UK utilisation rate has consistently
declined in the last 8 years, barring 2009

2 Financial Times April 27th 2011 By Sheila McNulty

17

2. Refineries

2.7 Sources of Crude Oil

2.8 Destination of Oil


Products

Africa

UK

Norway

Domestic
deliveries

Venezuala
Others
Russia
1,000 tons

2005

2007

Middle East
2009

2010

Exports
2011

Change y/y%

84,721

76,575

68,199

62,962

51,972

Exports

58,885

57,357

60,041

54,587

57,586

5%

54,099

50,999

45,202

42,196

33,745

-20%

Net

-28,263

-31,781

-37,045

-33,821

-39,358

-8.7

Ind. Prod
Imports

-17%

Source: DECC (DUKES)

Source: DECC (DUKES)


l

Around 74% of UK refinery crude throughput is from


the North Sea; around 52% from Norway and 22%
from the UKCS

Currently, around 8% of crude oil processed at UK


refineries arrives from Russia and the Middle East,
an increase on last years 5.7%

Imports from Africa have also increased from 8.8%


to 10.5%

The majority of oil products processed at


UK refineries are consumed in the UK market
approximately 62%

The total number of oil products exported out of the


UK is slightly higher than the total number of
imported products, as the table indicates
The EU is the main destination for UK oil product
exports; the UK is part of a trade triangle with
Belgium and the Netherlands. The US, however,
is also an important export market - particularly for
excess petrol
There is, however, increasing uncertainty over the
future of the UKs export market as global
oversupply narrows down outlet opportunities,
particularly in the US and the economic downturn
continues to dampen global demand; relevant in
particular to petrol, where UKs structural surplus is
high

2.9 UK Net Product Flows


UK Net Product Flows: 2011

Source: DECC (DUKES) Production for year 2012

18

These are Net product flows; they represent the


overall import and export balance of the various
grades shown

UK refineries, in common with those in the EU, were


configured to produce petrol and therefore have a
mismatch between domestic production and
demand
Fiscal policy in the EU has driven up demand for
diesel and demand for air transport has dramatically
increased aviation fuel use
Consequently, the UK has a deficit of aviation fuel and
diesel, whilst exporting surplus petrol, fuel oil and gas oil
Imports are key for the jet fuel market as demand is
over 11.5 mmt with UK refiners supplying only half
the market demand

2.11 Products Produced

Annual Oil Trade 1999 to 2011

Products Produced 2012

120

30

100

25

80

Production (Mte)

Quantity (m te)

60

20

40

15

20

10

-20
-40

5
0

-60

Petrol

-80
-100
-120

200 1

200 3

200 5

Imports

Exports

200 7

200 9

Petr.
Gases

Bur ning
Oil

Others

Source: DECC (DUKES - provisional data)

Balance

The chart illustrates UKs annual trade; imports


and exports of crude oil and petroleum products

The negative imbalance in trade from 2006 has


largely been a result of increased imports and a
decrease in exports of crude oil; a consequence of
depletion of the UK continental shelf

The petroleum products balance has also shifted:


both diesel and aviation fuel demand have driven
an increase in imports, whilst fuel oil exports have
declined and motor spirits increased

Gas Oil/ Jet Fuel Fuel Oil


Diesel

201 1

Source: DECC (DUKES)


l

2. Refineries

2.10 Annual Oil Trade

2.12 Product Demand

UK refineries are configured to meet historically


higher demand for petrol and fuel oil

As a result of reducing demand, refineries now


produce an excess of these products and are in
deficit in others, such as jet fuel and diesel
Changing refinery production to meet demand will
require major investment
See UKPIAs paper Fuelling the UKs future the
role of our refining and downstream oil industry
for more information and the IHS Purvin & Gurtz
report The Role and Future of the UK Refining
Sector published in May 2013

2.13 Changes in Refinery


Production

Product Demand 2012


100

30

20
15

10
5
0

Petrol

Gas Oil/
Diesel

Jet Fuel

Fuel Oil Petrole um Bur ning


Gases
Oil

Others

Gas Oil/ Diesel

Jet

Petrol

The majority of oil product demand comes from the


transport sector

Statistical Review 2013

40
20

197 6

198 0

198 4

198 8

199 2

199 6

200 0

200 4

200 8

201 2p

Source: DECC (DUKES))

UK refineries do not produce enough jet fuel or


diesel, consequently these are increasingly
supplemented by imports to meet demand
l

60

Source: DECC (DUKES - provisional data)


l

Fuel Oil

80
UK production Mte

Demand (Mte)

25

The major change in refinery production over the


last forty years has been a significant reduction in
the quantity of fuel oil produced

The increase in gas oil/diesel and petrol seen in the


80s and 90s has since levelled off
Over the same period, some of the surplus fuel oil
has been converted into petrol and gas oil/diesel or
exported

19

2. Refineries

2.15 Refinery CO2



Emissions

2.14 Changes in Product


Demand
100

Fuel Oil

Gas Oil/Di ese l

Jet

Petrol

Refinery CO2 Emissions

80

UK sales Mte

30

25
Emissions (Mte)

60

40
20

197 6

198 0

198 4

198 8

199 2

199 6

200 0

200 4

Since 1990 the demand for petrol has almost


halved, whilst jet fuel has seen demand rise by over
70%
 owever, overall demand clearly shows a
H
downward trend in the last four years, linked in part
to the economic crisis, which has affected nearly
all categories of oil product consumption, except
diesel which has remained almost flat

20

200 6

201 1

Refineries emit around 30% of the UKs CO2


emissions and are included in the EU Emissions
Trading Scheme

CO2 emissions increased slightly in 2011by around


7%

Refinery SO2 Emissions

Refinery NOx Emissions


50

Emissions (Kte)

Emissions (Kte)
l

200 1

2.17 Refinery NOx



Emissions

120
60

1979

1983

1987

1991

1995

1999

2003

2007

2011

Source: DEFRA

199 6

Although it takes more energy to supply an


increased demand for transport fuels, particularly
low sulphur fuels, refinery CO2 emissions have
fallen since 1970 as a result of improved energy
efficiency and refinery closures

180

0
1975

Source: DECC (GHG Emissions)

The major change in product demand since 1979


has been the decline of the fuel oil market - natural
gas replacing fuel oil for power generation and gas
oil for space heating - and the growth of transport
fuels

240

10

0
199 1

2.16 Refinery SO2



Emissions

15

200 8 201 2p

Source: DECC (DUKES)


l

20

Refineries release SO2 when sulphur, naturally


present in crude oil, is burnt

Refinery SO2 emissions have fallen by 72% since


1970, to around 60 thousand tonnes in 2011
This is due to investment to increase sulphur
recovery at refineries and the use of low sulphur
North Sea crude oil
Although there has been an increase in recent years
due to the use of higher sulphur crude oils, further
reductions are planned

40
30

20
10
0
1975

1979

1983

1987

1991

1995

1999

2003

2007

2011

Source: DEFRA

NOx is formed as a result of the combustion of fossil


fuels, and hence is produced at refineries

Refinery NOx emissions have fallen by well over a


third since 1990 to around 22 thousand tonnes; or
47% compared to 1975
This is due to the installation of abatement
technology at refineries

2. Refineries

2.18 Downstream VOC Emissions


l

Downstream VOC Emissions


250

Since 1990, refinery and storage emissions have


fallen by over 70%, to under 21 thousand tonnes
due to leak detection and repair programmes

200
Emissions (ktonnes)

 olatile organic compounds are produced from the


V
evaporation of oil products

150

Additional reductions in the downstream industry


are due to the introduction of vapour recovery
equipment at storage facilities, on petrol deliveries
and at many of the higher throughput filling stations

100

50
0
198 2

198 6

199 0

199 4

Refining/Storage VOC Emissions

199 8

200 2

200 6

201 0

Distribution of oil products VOC emissions

Emissions from distribution have reduced by 40%


since 1970 or 14% y/y in 2010

*2011 data for VOC emissions was not available at time of going to print
Source: DEFRA

Statistical Review 2013

21

3. Road Transport Fuels

3. Road Transport Fuels

otal product demand last year was down for a fourth

where 4 billion litres greater than those of diesel, whilst

consecutive year, indicating a downward trend. This

annual registration of new diesel vehicles was still only

is linked in part to the downturn, which has hit nearly all

one third of the total vehicle fleet. A key reason for this

categories of oil product consumption, as well as higher

relatively slow uptake had been the lack of any tax

oil prices and improved vehicle efficiency.

advantage for diesel, which is taxed at the same rate as


petrol. However, with the advances achieved in diesel

The road transport sector, prior to the recession, was

engine performance leading to improved fuel efficiency

growing at a steady rate, with increases in diesel use

relative to petrol, combined with changes in company

offsetting weaker petrol demand.

car personal tax policy and VED rates, consumers in


recent years have increasingly favoured diesel cars.

The increase in diesel sales is part of a Europe-wide

Today, 48% of new registered vehicles in the UK are

trend, largely fiscally, driven that has been developing

diesel fuelled, and over 59% of the 44 billion litres of road

for over two decades with the UK coming comparatively

fuels sold last year was diesel.

late to the dieselisation process; in 2004, petrol sales

3.1 Demand for Road Travel

3.2 Road Fuel Sales

Demand for Road Travel

60

700
600
550
500
450
400
350

300

199 5

200 0

historic data

200 5

201 0

201 5

low demand

202 0

central

202 5

203 0

203 5

 oad travel demand has been on an upward


R
trend for decades and, despite a flattening in
growth during the recession, demand is forecast to
increase in the future
However, due to advances in engine efficiency, this
trend is not reflected in product demand

40

Diesel

30
20

Petrol

10

Source: DECC
l

 y 2035, central demand is predicted to have


B
grown by over 66% from 1995 levels
l

22

50

0
197 6 198 0 198 4 198 8 199 2 199 6 200 0 200 4 200 8 201 2p

high demand

Source: DfT (DfT Road Transport Forecast 2011)


l

Total sales billion litres

Billion km driven

650

Total Road Fuel Sales

Whilst total road fuel sales have shown a long term


increase since 1970, they dropped slightly between
2007 and 2011 by over 11% due to a combination
of higher prices driven by the cost of crude oil and
the economic recession

In 2012 however, diesel sales have increased a


rise of over 2.5% - whilst demand for petrol around
18 billion litres has continued to decline 5%
decrease on previous year
Share between petrol and diesel continues to shift in
favour of diesel, now accounting for 59% of total fuel
sales
This is the result of an increased proportion of diesel
vehicles

Petrol Sales

35

Total sales (billion litres)

30
25

Today, sales of petrol have fallen to 18 billion litres accounting for a little over 41% of total road fuel as
a result of lower demand for fuel due to the current
recession and declining demand for petrol vehicles

20
15

10
5
0
1976

 ales of petrol have been falling since reaching a peak


S
of 33 billion litres in 1990 equivalent to 73% market
share of transport fuels

Average annual decline has almost doubled in the


last 5 years to over 5.5% per annum, relative to the
average of the last 20 years of 2.8% per annum

1982

1988

1994

2000

2006

2012p

Source: DECC

3.4 Diesel Sales

3.5 Maximum Sulphur in


Petrol

Diesel Sales
25
20
15
10
5
198 2

198 8

199 4

200 0

200 6

201 2p

Source: DECC
l

Max. Sulphur in Petrol

200 0

Sales of diesel have been steadily increasing for the


last twenty years, today reaching a little under 26
billion litres

This is the result of the increased popularity of


diesel vehicles due to their high efficiencies,
perceived lower running costs, and increased
demand for commercial vehicles

Parts per million sulphur (ppm)

Total sales (billion litres)

30

0
197 6

3. Road Transport Fuels

3.3 Petrol Sales

150 0
100 0
500
0

199 0

199 5

200 0

Legal L imi t

200 5

UK Actual

201 0

Source: BSI/UKPIA

The level of sulphur in road fuels is limited by law

From January 2009, all UK petrol was sulphur free,


containing less than 10 parts per million of sulphur

Diesel sales fell slightly in recent years due to the


economic recession and higher diesel prices but
returned to record sales in 2012

Prior to 2008, diesel was replacing petrol on a like


for like basis, with an average annual growth rate of
3% in the last 20 years, barring a short decline
period in 2008 and 2009

Statistical Review 2013

23

Max. Sulphur in Diesel

Sales of LPG for Transport

400 0

300
Total sales (million litres)

Parts per million sulphur (ppm)

3. Road Transport Fuels

3.7 Sales of LPG for


Transport

3.6 Maximum Sulphur in


Diesel

300 0
200 0

100 0
0

199 0

199 5

200 0
Leg al L imi t

200 5

201 0

150
100
50
0

199 9

200 1

200 3

200 5

200 7

200 9

201 1

The level of sulphur in diesel is also limited by law

All diesel in the UK became sulphur free by


January 2009 (below 10ppm)

Source: HM Revenue and Customs

24

200

UK Actual

Source: BSI/UKPIA
l

250

As well as petrol and diesel, liquefied petroleum gas


(LPG) is used as a road fuel in the UK

Sales of LPG rose rapidly between 2000 and 2006


based upon a favourable duty incentive, a
conversion grant scheme and favourable treatment
under the London Congestion Charge
However, the removal of the grant scheme and
gradual reduction in the duty differential between
LPG and standard fuels since has impacted on the
sales of LPG/petrol cars, which in turn has affected
sales of LPG, lowering sales to 185 million litres
down from a 2006 peak of almost 250 million litres

4. Biofuels

4. Biofuels

s a member of the European Union, the UK is

amount of work has been undertaken by the downstream

committed to reducing its carbon emissions as

oil industry to ensure that the Governments targets are

initially mandated by the 2003 EU Biofuels Directive that

met under the Renewable Transport Fuels Obligation

set an EU-wide target of 5.75% of the market share of

(RTFO) and that fuel quality standards are maintained.

transport fuels by 2010. This was followed by the recently

Key considerations are the amount of carbon saved

transposed Renewable Energy Directive (RED) that sets

by different biofuels, the sustainability of the source

out a target of 10% by energy for all forms of transport to

material, food crop production and the carbon balance

be from renewable sources by 2020.

associated with land use change. In December 2011, the


RTFO was amended to allow only biofuels to meet the

Given that over 25% of the UKs carbon emissions come

RED carbon and sustainability criteria to count towards

from the transport sector, with some 14% from the private

the obligation, and, from April 2013, the obligation was

car fleet alone, the transition to a low carbon model has

extended to include fuel consumed by Non-Road Mobile

been particularly challenging. As a result, an enormous

Machinery (NRMM).

4.1 RTFO Targets

4.2 UK Bioethanol
Consumption

4%

Million litres

% v olume biof uel in road


f uels

RTFO Targets
6%

2%
0%

07/08

08/09

09/10

10/11

11/12

12/13

13/14

Source: HMT
l

The RTFO was introduced in April 2008, with an


original target of 5% biofuel content (by volume) in
road fuels by 2010/11
However, this was revised due to sustainability
concerns and the targets for the biofuel content of
road fuels are 4.5% for 2012/13, and rising to 4.75%
for 2013/14
 eans by which the RED obligation is met are
M
yet to be decided. For this reason future RTFO
obligation is still unknown

Statistical Review 2013

UK Bioethanol Consumption

03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

Source: HMRC

l
l

880
800
720
640
560
480
400
320
240
160
80
0

Between January 2005 and March 2010, the


Government introduced a 20 pence per litre duty
reduction on bioethanol

In 2012/13, UK bioethanol consumption stood at a


little under 800 million litres, which represents
around 4.2% of all petrol sales by volume
The relatively low sales volumes reflect the current
logistical difficulties of adding bioethanol to petrol
There are various other renewable petrol fuels which
obligated companies use to meet their targets, such
as methanol
The buyout price in the RTFO is set at 30ppl

25
23

4. Biofuels

4.3 UK Biodiesel
Consumption

4.4 UK Progress towards



RTFO Targets
UK Progress towards RTFO Targets

UK Biofuel Consumption
% v olume biof uels in road f uels

120 0

4%

100 0

3%

Million litres

800
600

2%

400

1%

200
0

0%

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

Jan

Jul

2008

Jan
2009

Jul

Jan

Jul

2010

Bioe tha nol

Between July 2002 and March 2010, the


Government introduced a 20 ppl duty reduction on
biodiesel

In 2012/13, UK biodiesel consumption fell to around


520 million litres from previous years 992 million
litres as a result of waste fuels being used to fulfil
the RTFO obligation, which double count in the
RTFO
l

Jul

Jan

Jul

2012

Jan
2013

Biod iesel

Source: HMRC

Source: DECC

Jan
2011

2012/13 biodiesel levels represented around 2% of


total diesel sales by volume

The buyout price in the RTFO is set at 30ppl

The UK added 2.6% of biofuels during the first year


of the RTFO (2008/09), exceeding the target of 2.5%

In the 2nd year of the RTFO (2009/10), the UK met


the target of 3.25% of biofuels
In the twelve months of the 2010/11 obligation
period (Year 3), approximately 1,517 million litres
of biofuel have been supplied, of which 59% was
biodiesel and 41% bioethanol
In the 2011/2012 period, biofuel use increased to
3.7% of total road transport
In the last twelve months, total volume of biofuels fell
to 3.2%, according to latest data, as a result of
waste fuels now counting towards RTFO target at
double the value of bioethanol and biodiesel

4.5 Duty & Buy Out for Biofuels


Duty Differentials and Buy Out for Biofuels

40

Pence per litre

30
20

10

02/03

03/04

04/05

05/06

06/07

07/08

08/09

Duty Differential
Source: HMT/ RFA

26
22

09/10

10/11

11/12

Buy Out

12/13

13/14

A duty differential of 20 pence per litre has been in place


for biodiesel since 2002 and for bioethanol since 2005

In addition, a buy out price for the RTFO was


introduced at 15 ppl in 2008/09, giving a combined
incentive of 35 ppl
The duty differential was removed in 2010* with the
buyout price at 30 ppl
The buy out price is effectively a penalty on the
fuel supplier if the bio component is not added to the
final blend (or the fuel does not meet the carbon and
sustainability criteria)

* Except for cooking oil where the duty differential of 20 ppl remained until
April 2012

United Kingdom Petroleum Industry Association

A Question of Balance

How do we maintain a
competitive and growing
economy, and have sound
policy that meets
environmental objectives?

Europe has high environmental aspirations


The Europe 2020 strategy, adopted by the European Council in 2010, aims at achieving the following climate and energy targets:
To reduce greenhouse gas emissions by 20% compared with 1990
To increase the share of renewable energy sources in final consumption to 20%
To improve energy efficiency by 20%
EU Member States have committed to reach national targets, as defined in the National Reform Programmes. Furthermore,
2012 saw the launch of the European Commission's non-legislative report Roadmap for moving to a competitive low-carbon
economy in 2050. The roadmap includes plans and targets for the following sectors: power generation, industry, transport,
buildings, construction and agriculture, aiming to achieve a minimum of 80% reduction target by 2050.
EU Directives are transposed into UK legislation.
EU Low-Carbon Strategy

...but society needs oil to function


The International Energy Agency forecasts global primary energy demand rising by about 35% through to 2035, almost
comparable to adding another United States to the global demand balance. For several decades to come, oil is still likely to be the
most important fuel in the energy mix. In Europe, oil is set to account for 85% of total transport fuels in 2030 ( IEA World Energy Outlook
2011). In the UK, oil is projected to account for over 32% of total primary energy demand, with transport accounting for 41% of final
energy consumption (DDECC Updated Energy & Emissions Projections 2012 - Central Scenario). The projected global increase in demand for
primary energy creates a tremendous challenge. Sustaining and maximising domestic production are key to ensuring a reliable,
secure source of energy supply. The right infrastructure, policy and regulatory framework, are a prerequisite to ensure that oil
products can be supplied to consumers at affordable prices, meeting the UKs current and future energy needs in a way that is
consistent with sustainable environmental policy and to facilitate economic growth.
Primary use

Fuel

Billion tonnes

Billion tonnes

BP Energy Outlook 2030 = IEAs Outlook very similar

UK Final Energy Consumption 2030 (ktoe)

DECC Updated Energy & Emissions Projections 2012 - Central Scenario

Environmental aspirations have a cost


Against a backdrop of tough market conditions, cost pressures, supply vs. demand challenges, a burdensome legislative
background and growing competition from the USA and new players in the Middle East and Asia, our downstream oil industry is
at a key juncture. Oil will continue to play a major role in the UKs energy mix for many years to come. Most crucially, refineries
are impacted by multiple UK and EU legislation which places on them challenging incremental cost demands in terms of
operational and other requirements whilst severely disadvantaging them against EU and global competitors.
Crude cost and income from products UK refinery operating cost

Indicative graph potential impact of legislation assuming no cost pass through.


Margins shown are indicative, obtained under favourable market conditions.

Estimated cost impact of legislative requirements on UK


refineries (2013-2030) 11.4 billion

Not including: Fuel Quality Directive (FQD) Article 7a and Product Quality. FQD 7a cost
estimated in the indicative graph on the left. Most capital and operational costs are
non-recoverable. Source: IHS Purvin & Gertz 2013

...is energy supply at risk?


The 2013 IHS Purvin & Gertz report indicates that, with a level playing field with other refiners across the EU and
world, UK refineries would be considered to be competitive; indeed, they represent what is termed a core refining
capacity - refining capacity expected to survive and needed in order to keep the European market adequately supplied
(IHS Purvin & Gertz) .

However, there is the prospect of significant increases in capital expenditure and operating costs for UK
refiners as a result of proposed UK, EU and, in some cases, global legislation. Circa 11.4 billion is estimated to be
required to comply with UK and EU legislation to 2030. The legislative cost impact is likely to increase further once
the impacts from legislation which has yet to be fully defined, such as the Fuels Quality Directive (FQD), are factored
in. The report concludes that no industry would bear such an investment burden for no return. It would be highly likely
that, when faced with such a large mandatory capital expenditure requirement that provides no return on investment,
UK refiners could be forced to close more UK refineries.
This would leave the UK even more exposed to the international refined product market for those products already at
high risk, based on IEA measures developed to evaluate national energy security risks and resilience capacities. Using the
IEA MOSES (Model of Short Term Energy Security) net import indicator - 45% import dependence benchmark - and applying the
benchmark to individual products, the UK is already above the 45%, importing 56% jet fuel and 48% diesel. In the event
of further refinery closures, jet fuel imports could rise to 78% and diesel to 77% by 2030. In the UK, the Government is
working with the refining sector to develop a strategic policy framework - Refining Strategy - due for completion in Autumn
2013. At EU level, a permanent EU Refining Forum has been established and competitiveness checks - Fitness Checks - to
address EU refinings international competitiveness, are due for completion in 2014. However, as proposed, Fitness Checks will
not examine planned legislation or that being implemented (i.e. Industrial Emissions Directive (IED) and Fuel Quality Directive).
Refined Product Balance: Deficit in % for Scenario As is
Net imports

Refined Product Balance: Deficit in % Refinery Closure Scenario


Net imports

Net exports
Net exports
Source: IHS Purvin & Gertz 2013

A question of balance
On one side

The UK refining industry makes a substantial contribution to the UK supporting over 88,000 jobs in the extended supply
chain and wider economy. UK refining contributes, in a normal year, over 2.3 billion to the economy (Source: IHS Purvin &
Gertz 2013) and each large refinery is estimated to inject ~60m+ into the local economy where it is located (UKPIA estimate).

Even up to 2030 and beyond, oil is forecast by the IEA to be a major source of world energy.

The refining industry will continue to play a vital role in maintaining the countrys fuel supplies, given the right conditions.

To 2030, over 11.4 billion is estimated to be required to comply with a number of UK and EU policies. This figure
does not include the Fuel Quality Directive and will rise further once this is factored in. Most capital and
operational costs are non-recoverable.

With a level playing field, the UKs refining industry is competitively placed against EU and Global competitors.
On the other

The UKs refining industry recognises the importance of sustainable environment policy that meets objectives but does not
jeopardise competitiveness, employment prospects and mobility.

In order to continue keep the wheels turning, the planes flying and the economy growing, as well as meeting
environmental targets, a clear and balanced policy, based on sound science, is needed. Also, an approach that considers
the impact on key manufacturing industries, such as refining, is paramount.

Environmental ambitions can still be reached by amending policy, underpinned by practical and achievable measures,
without disadvantaging industry.

...the balance can be achieved


The UK oil refining sector will continue to play a central role in our future as a reliable, resilient and secure source of transport
fuels and feedstocks for other industries. In order to fulfil this role, UK refineries will require substantial investment.
To
attract this investment in a globally competitive market, the right policy environment, which does not place our industry at a
disadvantage against global and EU competitors, will be key.
The refining industry strongly believes that a balance between environmental ambitions and energy resilience can be
achieved. For these reasons, UKPIA calls for:

The DECC Refining Strategy to provide proposals to inform a future policy framework.

At EU level, the Refining Forums Fitness Checks must address past and current legislations effects on industry - e.g.
Fuels Quality Directive (FQD) and Industrial Emission Directive (IED).

For the FQD Article 7a, UKPIA advocates a linear and simple proposal: the GHG content of every fossil fuel sold at the
pump to be characterised as a fixed default value calculated as an EU average. Likewise, the country of origin of the
fossil fuel feedstocks can be calculated as an EU average, using publicly available data (i.e. EUROSTAT).

Under the IED, UKPIA proposes:


The bubble concept must be recognised as a valid Best Available Technique (BAT) as defined under IED Article 1(10).
BAT Conclusions and associated emission limit ranges must be based on robust evidence obtained from existing
refinery operations using the BATs.
Robust cost-effectiveness and cost-benefit assessment methodologies must be agreed, recognising investments
already made in emissions abatement.
It must be acknowledged, following revision of BREF documents, that the four year period for permit review and
achievement of compliance is unmanageable where investment in new abatement technology is required to meet the
revised emissions limits.

Economic recovery and growth will be driven by refined oil products provided by a healthy refining
industry. Our call is to UK and EU legislators to address the Question of Balance.

4. Biofuels

4.6 Sources of Biofuels used in the UK


Sources of Biofuels by Crop

Sources of Biofuels by Country

Unknown
6%

United States
39%

Soy
2%

Used cooking oil


52%

Palm
1%
Oilseed rape
3%

United Kingdom
12%

Spain
4%
Unknown
20%

Corn Non EC
31%
Corn EC
3%

Wheat
2%

Netherlands
10%
Italy
1%
Indonesia
1%

Canada
Germany
6% France 3%
2%

Argentina
2%

Source: DfT (covering period April 2011 December 2011)

Roughly 12% of biofuels used are produced in the UK, down from 18% the previous year; the remainder is imported

Ethanol is mostly sourced from sugarcane and sugar beet

Biodiesel is mostly sourced from used cooking oil, soy and rape

Statistical Review 2013

27
23

5. Other Products

5. Other Products

wide range of products are produced from crude

contrast, the domestic/industrial markets for other fuels

oil, ranging from transport and domestic/industrial

have altered markedly over the last twenty years as sales

fuels to chemical feedstocks. Over time, refinery

of fuel oil and gas oil have reduced, being displaced in

configurations have developed to increase the quantities

power generation and industrial applications by natural

of high value transport fuels that can be produced. In

gas.

5.1 Refining Production

5.2 Fuel Oil Deliveries

Refining Production in 2012*


Naphtha

Inland Fuel Oil Deliveries


30
Deliveries (million tonnes)

LPG

Petrol

Jet and
Kerosene
Diesel and
Gas Oil

Fuel Oil

Bitumen

Source: DECC *excludes refinery use and losses

The current trend of production is away from heating


fuels (fuel and gas oils) and towards transport fuels
(petrol, diesel and jet fuel)

10

0
1976

1982

1988

1994

2000

2006

2012

Source: DECC

Refineries produce naphtha, LPG, road fuels,


kerosene, jet fuel, heating oil, diesel, gas oil, fuel oil,
bitumen and other products such as chemical
feedstocks

20

The market for fuel oil has reduced significantly


since 1970 rising only briefly in 1984 due to the
miners strike

The reduction in demand is mainly due to fuel


switching to natural gas by electricity generators
the dash for gas

Refineries will require major investment to meet the


increased demand for diesel and jet fuel estimated
at up to 700 million at each major refinery

(Deloitte report for DECC on Downstream oil April 2010)

5.3 Gas Oil Deliveries


Inland Gas Oil Deliveries

16
Deliv eries (million tonnes)

14

12
10

6
4

0
197 6

Source: DECC

28

198 2

198 8

199 4

200 0

200 6

201 2

The UK demand for gas oil has fallen since 1970 to a little
over 5 million tonnes

Gas oil is produced from a similar fraction of crude oil


as diesel and so production is limited
The reduction in demand is mainly due to fuel switching
to natural gas
Product specification changed for inland marine fuels
and off road gas oil fuels from January 2011, moving
them to 10PPM, virtually sulphur-free. This adds further
pressure on middle distillate desulphurisation capacity

5.5 Aviation Fuel Deliveries

Inland Kerosene Deliveries

Inland Aviation Fuel Deliveries

4.5

15
Deliv eries (million tonnes)

Deliv eries (million tonnes)

4.0

12

3.5
3.0
2.5
2.0

1.5
1.0
0.5

0.0
197 6

198 2

198 8

199 4

200 0

200 6

201 2

Source: DECC
l

9
6

3
0
197 6

198 0

Kerosene (also called burning oil) is used as fuel for


domestic and industrial heating, and sales are
typically higher during the winter
Inland sales of kerosene have increased since 1980
reaching over 4 million tonnes in recent years, but
dipping to 3.3 million tonnes in the last two years
(2011 and 2012)

199 6

200 0

200 4

200 8

201 2

Aviation fuel demand has been falling for the last six
consecutive years barring 2011 mostly as a
result of the recession and more efficient engines

5.7 Lube Oil Deliveries


Inland Lube Oil Deliveries

3.0

1.2

2.5

1.0

2.0
1.5
1.0
0.5
0.0
197 6

198 2

198 8

199 4

200 0

200 6

201 2

Demand for bitumen has declined to just 1.3 million


tonnes/pa
Bitumen is produced from some of the heaviest
fractions of crude oil and is mainly used for road
surfacing and roofing

Deliv eries (million tonnes)

Deliv eries (million tonnes)

199 2

New legislation introduced in January 2008


restricted the sulphur levels in kerosene to 0.1%

Source: DECC

198 8

Aviation turbine kerosene is used in jet engines

Inland Bitumen Deliveries

198 4

Source: DECC

5.6 Bitumen Deliveries

5. Other Products

5.4 Kerosene Deliveries

0.6
0.4
0.2
0.0
197 6

198 2

198 8

199 4

200 0

200 6

201 2

Source: DECC

Statistical Review 2013

0.8

Sales of lubes and greases have fallen since 1970


to around 0.36 million tonnes/pa

Improved engines require fewer oil changes and the


use of synthetic lubricating oils has also contributed
to this reduction
The introduction of biodiesel at higher levels could
see oil drain intervals reducing and demand for
lubes increasing

29
23

6. Petrol Prices

6. Petrol Prices

s a result of the UKs competitive road fuels retail

It should also be noted that data hides variations between

market and efficient distribution facilities, the pre-

remote rural regions and urban areas, in part due to

tax price of major brand petrol in the UK is consistently

higher transportations costs. The government is seeking

amongst the lowest in Europe. However, despite this

to address this by setting up a pilot scheme to provide

competition, the price paid by consumers at the pump

a 5 pence per litre fuel rebate for very remote areas. The

is one of the highest in Europe, due to the higher levels

scheme launched on March 1st 2012 with more than 90

of duty applied by the Government. The retail/ex-refinery

businesses in the Inner & Outer Hebrides, Northern Isles,

price spread on average has been around 6 pence per

Islands in the Clyde and Isles of Scilly taking part.

litre on petrol for most of the last decade.

6.1 Petrol Pump Price

6.2 Average Contribution to



Pump Price

UK Petrol Pump Price Breakdown


140

Average Contribution to Pump Price 2012

120
Pence per litre

100
80

Retail /
Ex-refinery
Price Spread
6%

60
Duty /VAT

40
20

0
199 2

Pre-tax

199 6

200 0

200 4

200 8

Ex-Refinery
Price
30%

201 2

Source: Wood Mackenzie *The price of petrol is in money of the day

30

The price of petrol at the pump has steadily


increased over the last 20 years with the exception
of the most recent spike in 2008, which was a result
of crude oil prices reaching record levels

Since the petrol price-dip in 2009 as a result


of prices levelling-off from the previous year the
increase in petrol prices has grown at a much faster
rate in the last 3 years; an average of 6.6% from
2003-2008 vs. 11% between 2010 and 2012
Consistent growth is due in part to the general rise
in crude oil prices, reflecting increased global
demand
The increases in duty in December 2006, October
2007, December 2008, April 2009 and a significant
jump in 2010 also contributed to the rise in pump
prices along with VAT increase to 20% in 2011

Duty / VAT
64%

Source: Wood Mackenzie

Duty and VAT are the main components of the pump


price of petrol in the UK, making up almost two
thirds of the total

VAT increased to 20% in January 2011 after a


temporary cut to 15% in 2008 rising to 17.5% in
2010; VAT was 22.7p on average throughout 2012
Duty remained steady at 58p throughout 2012
The average retail/ex-refinery price spread for 2012
was around 6.7 ppl

6.4 Pre-Tax Petrol and



Crude Prices

6. Petrol Prices

6.3 European Prices


Pump Prices of Unleaded Petrol 2012

Pre-Tax Petrol and Crude Prices

140

60

100

50

80

Pence per litre

Pence per litre

120

60
40
20
0

UK

Ger

Spa in France Neth

Excl Duty & VAT

Italy

Bel

Lux

Source: Wood Mackenzie

 he price paid at the pump by UK consumers was


T
however considerably higher third highest in
Europe - due to the levels of fuel duty

20

Crude Oil
Price

10

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: DECC

In 2012 the UK pre-tax price of major brands of


unleaded petrol was again the lowest in Europe
at 55.4 pence per litre, whilst the average of the 7
major EU countries was 60 pence by comparison

30

Duty & VAT

Petrol Price

40

The pre-tax price of petrol is related to the cost of


crude oil

The effect of crude prices on the final pump price is


lessened by the high levels of fuel duty
The /$ exchange has a significant influence on fuel
prices

6.5 Fuel Price and Tax


Comparison
Fuel Price and Tax Comparison
200

Duty
&VAT

1990 = 100

150

100
Pre Tax
50

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: Wood Mackenzie/UK Statistics Authority


l

 he pre-tax price of petrol only recently increased


T
relative to 1990 levels, having remained below RPI
adjusted 1990 prices until 2005
 uty and VAT steadily increased relative to 1990
D
levels throughout the 90s, until they were effectively
frozen following protests in September 2000
 hey have recently risen again, and continue to show
T
a greater increase over the past 18 years than the pretax price. 2010 saw the largest growth since 1999.
In 2012, duty was effectively frozen, with VAT only
increasing the tax curve

Statistical Review 2013

31
23

7. Diesel Prices

7. Diesel Prices

he UK road fuels retail market is highly competitive

However, as petrol engine efficiency improvements

and distribution facilities are efficient; consequently,

continue to catch up with that of diesel, forecasting

the pre-tax price of major brand diesel in the UK is

the current dieselisation trend long-term is difficult.

consistently amongst the lowest in Europe. Despite this

Particularly as the growing drive for a reduction in

competition, diesel prices remain among the highest in

carbon emissions from transport will increasingly result

Europe, but while a much larger share of the price is

in tax levels becoming more aligned with vehicle carbon

taken up by tax compared to other European markets,

emission levels, and most likely lead to a marginal

the refining margin remains higher relative to petrol.

increase in the attraction of smaller capacity gasoline


fuelled vehicles. For these reasons, analysts argue that

The UK, unlike other European markets, doesnt tax

the growth in diesels market share will slowly cease

diesel at a lower rate than petrol, this results in diesel

and reach a peak in 2017, followed by a gradual reversal

prices in the UK being slightly higher compared to

in trend.

petrol. Nonetheless, as briefly discussed in chapter


3, diesel demand has continued to gain market share
since the late 90s, partly as a result of the fuel efficiency
advantage of diesel engines over petrol.

7.1 Diesel Pump Price

7.2 Average Contribution to



Pump Price

UK Diesel Pump Price Breakdown


Average Contribution to Pump Prices 2012

160

Pence per litre

140

120
100
80
60

Duty & VAT

40
20
0
199 2

199 6

200 0

200 4

Ex-Refinery
Price 37%
Excl. Duty & VAT

200 8

201 2

Retail/ ExRefinery Price


Spread 4%

Source: Wood Mackenzie


*The price of petrol in figure 7.1 is in money of the day

The price of diesel at the pump has steadily


increased over the last 20 years with the exception
of the most recent jump in 2008 and again in 2011;
a direct impact from crude oil prices reaching
record levels and duty/VAT increases
l

32

Barring the price-dip in 2009 as a result of


crude oil prices levelling off from the previous
year diesel prices have grown at a fairly sharp
gradient, averaging over 11% in the last 3 years, or
approximately 7% since 1990
This growing increase is due to rising crude oil
prices, reflecting increased global demand
The increases in duty in December 2006, October
2007, December 2008, April 2009 and 2011 also
contributed to the rise in pump prices

Duty/VAT 59%

Source: Wood Mackenzie

In 2012 duty and VAT made up almost two thirds of


the pump price of diesel in the UK

The retail/ex-refinery price spread was around


7.4 ppl
F
 rom this the oil company and retailer must cover all
site, distribution and storage expenses

Pump Prices of Diesel 2012

Pre-Tax Pump Prices of Diesel 2012

160

Pence per litre

Pence per litre

64
62
60

58

Ger

Spa in Ireland France Neth

Lux

Italy

100
80
60
40
20
UK

Bel

 he low UK pre-tax price is a result of strong


T
competition amongst retailers and an efficient fuel
distribution network

7.5 Pre-Tax Diesel and



Crude Prices

Crude Price
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: Wood Mackenzie


l

 he pre-tax price of diesel is closely related to the


T
price of crude oil
 he /$ exchange is a key factor in determining fuel
T
prices

Lux

Spa in

Ire

225
200
175
150
125
100
75
50
25
0

Duty & Vat

Pre Tax Price

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: Wood Mackenzie/UK Statistics Authority

Statistical Review 2013

Bel

Fuel Price and Tax Comparison

1990 = 100

Pence per litre

Diesel Price

30

Ger

7.6 Fuel Price and Tax


Comparison

60

10

Fra

The UK is the only major European country to apply


the same duty rate to diesel and petrol

70

20

Italy

 he final pump price of major brand diesel in the


T
UK was the highest compared to major European
countries in 2012, reflecting the high level of duty
paid on fuel in the UK

Pre-Tax Diesel and Crude Prices

40

Neth

Source: Wood Mackenzie

In 2012, the UK once again had the lowest pretax diesel price in the EU; around 2 pence lower
compared to the next lowest, Luxembourg

50

Duty & VAT

120

0
UK

Source: Wood Mackenzie


l

Excl duty/VAT

140

68

66

7. Diesel Prices

7.4 European Pump Prices

7.3 European Pre-Tax Pump


Prices

 he pre-tax price of diesel only increased relative to


T
1990 levels in 2004 and has since picked up pace

Despite the large price-drop in 2009, following a


rally in 2008, diesel price superseded the Duty and
VAT 1990 base indicator in 2011, suggesting that
the total price increase for that year was mainly
driven by crude oil prices along with a continued
squeeze in the diesel market across Europe
Duty and VAT steadily increased relative to 1990
levels throughout the 90s, until they were effectively
frozen following protests in September 2000
Following an almost 7 year hiatus, duty was again
steadily increased from December 2006 through to,
and including 2011, whilst VAT was briefly lowered
to 15% in 2009 but increased to 20% in 2011; this
explains the slightly higher gradient in duty and VAT
from 2006, as shown in the chart

33
23

8. Filling Stations Stats and Crime Data

8. Filling Stations Stats and Crime Data

ver the last forty years the number of filling stations

The only section of the retail market that is currently

in the UK has reduced dramatically, from over 37,500

growing is large supermarket sites. In 2012, hypermarkets

in 1970 to 8,608 at the end of 2012. In the last ten years,

accounted for around 41% of market share by volume,

on average more than 450 filling stations closed each

despite only owning 15% of all petrol stations versus

year due to strong competition between fuel retailers and

the oil companies 28% market share by volume with

the increasing costs of compliance with environmental

ownership of 25% of all petrol stations.

regulation. This favours large service stations with lower


overheads per litre sold. As a result many smaller filling
stations have become economically unviable.

8.1 Number of Sites

8.2 Ownership of Sites

Total Sites

Ownership of Sites

35,000

25,000

30,000

Supermarket

Number of sites

Number of sites

20,000
15,000
10,000
5,000
0
197 6

198 2

198 8

199 4

200 0

200 6

10,000
5,000

201 2

Source: Energy Institute until 2005; Catalist onwards

At the end of 2012 there were 8,608 filling stations in


the UK

The number of filling stations is now less than a


quarter of the 1970 total
Over the past ten years, the number of sites has
been falling at a rate of approximately 450 per year

199 0 199 2 199 4 199 6 199 8 200 0 200 2 200 4 200 6 200 8 201 0 201 2

Source: Energy Institute until 2005; Catalist onwards

34

Dealer / Independent

15,000

Oil Companies

20,000

25,000

 any filling stations owned and operated by both oil


M
companies and independent retailers have closed
due to competition and low profits

The number of supermarket sites is increasing at a


steady rate of 2% p/y
Independent sites still account for the majority of
petrol stations at around 60% of total number but
only 31.3% of sales volume
In the last few years several oil majors have exited
the UK retail market

8.4 Supermarket Share of



Retail Sales

Supermarket Sites
1,4 00

Supermarket Share of Retail Sales


50

1,0 00

40

800

30

600

400

20

200
-

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

 ver 15% of all filling stations are now owned by


O
supermarkets

 lthough numerically in the minority, volume sales


A
are the significant factor and account for 41% of
market share

199 4

199 7

200 0

200 3

200 6

200 9

201 2

Source: DECC (ETS)

 t the end of 2012 there were 1,306 supermarket


A
filling stations in the UK

Diesel

10

Source: Energy Institute until 2005; Catalist onwards


l

Petrol

% of sales

Number of sites

1,2 00

8.5 Throughput per Site

8. Filling Stations Stats and Crime Data

8.3 Supermarket Sites

As the retail market continues its decline for the 3rd
consecutive year, supermarket share of retail sales
has continued to grow steadily
 upermarkets now account for 45% of all petrol sold
S
and 38% of diesel

8.6 Access to Filling


Stations

Throughput per Site


14

Access to Filling Stations 2011

12

350
250

Sites/million people

300

Million litres / y ear

10

6
4

2
0

199 7

200 0

200 3

200 6

Independents

200 9

100
50
Eng land

Supermarkets

 he average throughput of all filling stations has


T
risen markedly since 1994 to around 4 million
litres per year. However, there is a huge disparity
between company, independent and supermarket
sites
 he average supermarket site throughput is
T
currently around 11 million litres per year whilst
independent sites average just over 2 million litres

Statistical Review 2013

150

201 2

Source: DECC / Energy Institute / Catalist


l

200

Wales

Scotland

Northern
Ireland

Source: ONS / Catalist

 he number of filling stations per capita is highest


T
in Northern Ireland with around 296 p/p relative to
England with 127 p/p

For the last four consecutive years, the number of


filling stations has consistently reduced in all four
regions
See UKPIA briefing paper Fuel Supply to Rural
Filling Stations for more information

35
23

8. Filling Stations Stats and Crime Data

Service Station Crime

OSS (British Oil Security Syndicate Ltd.) is an

motorists drive away without paying after taking fuel

independent trade organisation and forecourt crime

(Drive Offs) and customers fail to return and pay after

campaigner dedicated to reducing criminal activity on

claiming to have no means of payment with them.

service stations which cost the industry over 25.7 million


in 2012, up from 22.2 million in 2010. Its members are

BOSS collects statistical information from almost 1,200

the oil companies BP, Shell, Valero (Texaco brand) and

service stations supplied by its members and the charts

Total, as well as members of the Retail Motor Industry

below show the quarterly incident rates of different types

Federation Petrol. BOSS works closely with local

of crime. The data is also used to estimate the industry

police forces, the Home Office and forecourt owners and

loss each year.

operators, representing about 6,000 fuel station retailers


in the UK who employ over 55,000 people.

Visit www.bossuk.org for more information

Developing procedures to ensure the safety of staff and


customers and to reduce operational losses are the
primary drivers. The major source of loss arises when

8.7 Crime Related Injuries

8.8 Types of Weapon


Type of Weapon
Incidents per quarter per 100 service stations

Crime Related Injuries to Service Station Staff


Incidents per quarter per 100 service stations
0.7

0.6
0.5
0.4
0.3
0.2
0.1
0.0

2008 q1

2009 q1

2010 q1

Major

2011 q1

2012 Q1

2008 q1

Other

2009 q1

Gun
Source: BOSS

Major Injuries are RIDDOR reportable

Since 2010 q1 there have been many quarters with


no injuries reported and only a small proportion of
those reported were major

Knife

2011 q1

2012 Q1

Other

Source: BOSS

 eports of incidents involving weapons have been


R
declining for several years

l
Reports of guns have declined in each year since
2007

36

2010 q1

Reports of knives declined each year from 2007 to


2010 but rose in 2011. In 2012 they resumed their
downward trend
Reports of other weapons were low in 2009 but rose
in 2010 and have remained stable in 2011 and 2012

8.10 Burglary Losses

Robbery
Incidents per quarter per 100 service stations

Burglary Losses
loss per quarter per 100 non 24hr service stations

14000

1.6

12000

1.8
1.4
1.2

10000

0.8
0.6

8000

0.2

6000

0.4
0
2008 q1

2009 q1

2010 q1

actual on oil company


actual on 3rd party

2011 q1

2012 Q1

4000

attempts on oil company


attempts on 3rd party

2000

Source: BOSS
l

0
2008 q1

 obbery is theft with actual or threat of physical


R
violence and consequently carries the risk of staff injury
 he incidents in the chart exclude attacks on cash
T
machine servicing and cash in transit carried out by
3rd parties
 here was a high level of incidents in 2007/8 but they
T
have fallen back since then. Reports of incidents
involving 3rd parties showed a rise in 2012

2011 q1

2012 Q1

 urglary losses are calculated in relation to the


B
number of non 24 hour service stations surveyed
Burglary losses exclude property damage
 osses per service station continued on a long term
L
falling trend

8.12 Estimated Industry


Losses
35
30
25
20
15
10
5

2008
q1

2008
q3

2009
q1

2009
q3

Drive off

2010
q1

2010
q3

2011
q1

2011
q3

2012
Q1

2012
Q3

 riving off without paying for fuel remains the major


D
source of loss at fuel service stations. Motorists
claiming to have no means to pay generates the
second highest source of loss
 uel price increases are eroding the industrys
F
efforts to contain losses

Statistical Review 2013

2002

2004

Drive Off

No Means to Pay

Source: BOSS

2010 q1

Estimated Industry Losses - million per year

Drive off and No Means to Pay Losses


Loss per quarter 000 per 100 service stations

2009 q1

Source: BOSS

8.11 Drive-off and No



Means to Pay Losses

90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0

8. Filling Stations Stats and Crime Data

8.9 Robbery Incidents

2006

2008

No Means of Payment

2010

2012

Other

Source: BOSS

Industry losses are estimated by extrapolating from


data collected by BOSS in quarterly surveys

Losses exclude fraud, credit card losses, shop theft,


property damage and consequential losses such as
staff time following violent incidents

37
23

9. Air Quality

9. Air Quality

ne of the key drivers for the oil industry is reducing the

*At the time of publication data for 2011 was not available

environmental pollution from the use of fuels. Since

except for graph 9.2

1990 road fuels and vehicles have become significantly


cleaner, resulting in much lower exhaust emissions despite
an increase in traffic levels of around 25%.

9.1 Vehicular Emissions

Number of Days when Air Pollution is Moderate


or Higher

Relative Vehicular Emissions of Pollutants 1990 base

120

Av erage number of day s

100

% 1990 lev els

120
110
100
90
80
70
60
50
40
30
20
10
0

9.2 Air Pollution

Ben zen e

SO2 1,3 Butadiene NOx


199 6

200 2

VOC

PM10

CO

80
60
40
20
0

201 0

199 2 199 4 199 6 199 8 200 0 200 2 200 4 200 6 200 8 201 0 201 2
Rural Average

Source: DEFRA/AEA Energy & Environment

Urban Average

Source: DEFRA/AEA Energy & Environment

Emissions of exhaust gas pollutants have been


significantly reduced from 1990 levels

The largest reduction has been made for SO2


through the introduction of zero sulphur petrol and
diesel and will come with the move to zero sulphur
fuels for off-road machinery vehicles set for 2011

Air pollution in urban areas has fluctuated over time


but there has been a general long term decline
in high air pollution days at both urban and rural
monitoring sites despite an increase in 2011

Days of moderate or higher air pollution for rural


areas have shown a clear downward trend
The variability of weather from year to year plays
an important role; for example, the hot summers of
2003 and 2006 resulted in high pollution levels
mainly caused by ozone some associated with
trans-boundary sources. The comparatively cooler
summer in 2007, 2010 and 2012 ensured air
pollution reverted to low levels

9.3 Primary Particulate Matter


Primary Particulate Matter Sources 2010
Other
62%


Residential
16%

Source: DEFRA/AEA Energy & Environment

38

Road transport
22%

In 2010 the combustion of road fuels contributed 22% of


the UKs primary emissions of particulate matter

The residential sector produced 16% of the emissions,


with the rest produced by other sources including
industry and power generation
Ambient levels of PM10 include fine particles from
primary (around a third), secondary and other sources

9. Air Quality

9.5 Sources of NOX

9.4 Road Transport PM10



Emissions

Sources of NOX 2010

Road Transport PM10 Emissions

Other
36%

PM10 emissions (ktonnes)

50
40
30
20
10

0
197 4

Road transport
34%

198 0

198 6

199 2

199 8

200 4

201 0

Source: DEFRA/AEA Energy & Environment

Source: DEFRA/AEA Energy & Environment

Emissions of particulate matter (PM10) from road


transport peaked in 1994 at 44 thousand tonnes

Since then, emissions have fallen by a little under


44% due to tighter standards for vehicular
emissions and the move to sulphur free road fuels

However, the increased dieselisation of the car park


will continue to impact this trend since PM10
emissions are higher from diesel than petrol

Energy industries
30%

Nitrogen oxides (NOx) are mainly formed as a by-


product from the combustion of fossil fuels

30% of the UKs total NOx emissions in 2010 were


from energy industries
The largest single source of emissions was road
transport, producing 34% of the total
Tighter EU exhaust emission standards will reduce
vehicle NOx emissions

9.7 Sources of Benzene

9.6 Road Transport NOX



Emissions

Sources of Benzene 2010

Road Transport NOX Emissions


120 0

Manufacturing 7%

Road Transport 13%

Vehicle emissions (ktonnes)

100 0
800
600

Residential
10%

400
200
0
197 4

Other
34%

197 8

198 2

198 6

199 0

199 4

199 8

200 2

200 6

201 0

Source: DEFRA/AEA Energy & Environment


l

Nitrogen oxides are acidifying and eutrophying


gases and give rise to ground-level ozone

Road transport NOx emissions have fallen by over


two thirds from their peak in 1990 but rose by 4% in
2010
l

Source: DEFRA/AEA Energy & Environment

The overall gradual decline in NOx emissions is


as a result of oxidation catalysts (diesel vehicles)
and catalytic converters (petrol vehicles) which
have been enabled by sulphur-free diesel and
unleaded petrol

Statistical Review 2013

Fugitive Emissions from


Fuels 9%

In 2010, road transport was responsible for 13% of


the UKs benzene emissions

Stage II Vapour Recovery is being fitted to large


petrol stations
Benzene is naturally present in crude oil and is also
formed during refining
Most benzene is removed to comply with
specifications

39
23

9. Air Quality

9.9 Sources of CO

9.8 Road Transport



Benzene Emissions

Sources of CO 2010

Road Transport Benzene Emissions


Benzene emissions (ktonnes)

25
Road transport
43%

20
15

Residential
15%

10
5
0
199 0 199 2 199 4 199 6 199 8 200 0 200 2 200 4 200 6 200 8 201 0

Source: DEFRA/AEA Energy & Environment


l

Emissions of benzene from road transport have


reduced significantly since 1990 due to the
introduction of exhaust after-treatment technology
enabled by unleaded petrol

In 2000 emissions of benzene were further reduced


following the lowering of the benzene and aromatics
limits in petrol

Other
42%

Source: DEFRA/AEA Energy & Environment

In 2010 road transport was responsible for 43% of


the UKs carbon monoxide emissions down 4%
from the previous year
The residential sector was responsible for 15% of
emissions

9.11 Sources of VOCs

9.10 Road Transport 1,3


Butadiene Emissions

Sources of VOCs 2010

Vehicle emissions (ktonnes)

Road Transport 1,3-Butadiene Emissions

Solvent and
other product
use
44%

14
12

8
6

Oil products
6%

4
2
0
199 0 199 2 199 4 199 6 199 8 200 0 200 2 200 4 200 6 200 8 201 0

Emissions of 1,3-butadiene have reduced by more


than 90% since 1990

Further reductions are expected as a greater


proportion of vehicles meet new car exhaust
emissions standards
l

Fugitive
emissions from
fuels
19%

Road transport
9%

Residential
3%

Source: DEFRA/AEA Energy & Environment

40

Others
19%

10

Source: DEFRA/AEA Energy & Environment


l

Carbon monoxide is formed from the incomplete


combustion of fossil fuels

In 2010, road transport was responsible for 9% of


the UKs volatile organic compound emissions

The main source of emissions is from the use of


solvents and paints
Refining, storage and distribution of oil products
were 6% of the total emissions

9. Air Quality

9.12 Road Transport



Emissions of VOCs
Road Transport Emissions of VOCs
VOC emissions (ktonnes)

125 0
100 0
750

500
250
0
197 4

197 8

198 2

198 6

199 0

199 4

199 8

200 2

200 6

201 0

Source: DEFRA/AEA Energy & Environment


l

Road transport emissions of VOCs have


dramatically reduced since their peek in 1991,
falling by around 93%
This reduction has resulted from the introduction
of catalytic converters on cars and the switch to
more diesel vehicles

Statistical Review 2013

41

10. Greenhouse Gases

10. Greenhouse Gases

key driver for the downstream oil industry is the UK


Governments commitment to reduce emissions

mileage. In the last three years, the pace of reduction


of average new car CO2 emissions was more than twice

of greenhouse gases by 80% by 2050 relative to 1990

the rate averaged over the past decade and reflects the

levels. The main greenhouse gas is carbon dioxide, CO2.

improvements in vehicle efficiency enabled in part by

Emissions of CO2 from road transport have significantly

cleaner fuels.

been reduced when compared to the overall increasing

10.1 Greenhouse Gases



and Commitments

10.2 Source of Carbon



Dioxide

Greenhouse Gases and Commitments

Sources of Carbon Dioxide 2011

100 0

Business
16%

Ky oto target
by 2008-2012

Emissions (mtCO2e/y ear)

800

600

Energy Supply
40%

400

Carbon budgets

200

Residential
15%
199 0

Source: DECC

199 4

199 8

200 2

200 6

201 0

Basket of greenhouse gases

201 4

201 8

Carbon dioxide

Road Transport
26%

The UK met the Kyoto protocol in 1999 13 years


ahead of the target year - delivering a 12.5%
reduction in greenhouse gases compared to 1990

Source: DEFRA/AEA Energy & Environment

The 2009 UK Low Carbon Transition Plan set a


target to reduce greenhouse gas emissions by 34%
by 2020 relative to 1990

Other
4%

Latest emissions data (2011) measures UKs carbon


footprint at 456 million tonnes p/y, and basket of
greenhouse gases at 549 million tonnes

Road transport produces approximately 26% of the


UKs CO2 emissions around 119 million tonnes

The energy supply industry, along with the


residential and business sectors, are also major
sources of CO2

l
Carbon dioxide accounted for an estimated 83% of
the UKs man-made greenhouse gas emissions in
2011

Emissions in 2011 have already been reduced by 23%


relative to 1990

10.3 Road Transport CO2 Emissions


Road Transport CO2 Emissions

140

Emissions (mtCO2)

120

100

80

60

40
20
0

197 5

198 1

198 7

199 3

199 9

200 5

201 1

Source: DEFRA/AEA Energy & Environment

42

CO2 road transport emissions decreased for a fourth year


running in 2011 in part due to the 2008 economic crisis
and lower demand for road transport fuels

Since 1990, emissions from road transport have risen at


a much lower rate than vehicle mileage
This can be attributed to the use of more efficient
vehicle technologies enabled by cleaner fuels, and an
increased proportion of diesel vehicles
The CO2 levels from fuel will continue to reduce with
increasing use of biofuels as required by the RED
The Renewable Energy Directive (RED) mandates
that 10% of transport energy is to be from renewable
sources, whilst the Fuel Quality Directive (FQD),
mandates a reduction in emission by 6%, all to be
completed by 2020

10.5 Sources of Methane

New Car Fleet Average CO2 Emissions

Sources of Methane 2011

200
190

Agriculture
43%

180

10. Greenhouse Gases

10.4 CO2 from New Cars

CO2 g/km

170
160
150
140
130

Landfill
33.7%

199 7

200 0

200 3

200 6

EU average
UK Private

200 9

201 2

UK Business
UK Average

Coal Mines
4.7%

Source: SMMT/European Commission


l

UK average new car CO2 emissions have fallen


every year on record, although the UK average still
lags behind the EU average slightly
Future emissions of CO2 from road transport will
continue to be lowered by further improvements in
vehicle efficiency

Other
9.1%

Gas-expl, prod.+
trans.
9%
Road Transport
0.15%

Source: DECC/AEA Energy & Environment

 s the UKs older vehicles are replaced and more


A
diesel cars purchased, the fleet efficiency will
improve

 oad transport is a minor contributor to methane


R
emissions, producing around 0.15% of the UK total
in 2011

The main contributing sector is agriculture which


accounted for over 43%

 he current trend to smaller vehicles will also


T
contribute to lower emissions

10.7 Sources of N2O

10.6 Emissions of Methane


Road Transport Emissions of Methane

Sources of N2O 2011

Emissions (ktonnes)

35

30
25
Agriculture
84%

20

15
10
5
0
197 5

198 1

198 7

199 3

199 9

200 5

Industrial
processes
1%

201 1

Source: DECC/AEA Energy & Environment


l

 espite the low level of emissions, reductions are


D
still being achieved as a result of the introduction of
exhaust after-treatment technologies

Other
13%

Source: DECC/AEA Energy & Environment

 missions in 2011 were over 90% lower than the


E
peak around 1989
l

Statistical Review 2013

Road transport
2%

In 2011 road transport was responsible for around


2.7 thousand tonnes of nitrous oxide (N2O), or 2% of
total emissions

Agriculture is the main source accounting for 84%


of emissions, mainly from agricultural soils
Weighted by global warming potential, nitrous oxide
emissions accounted for around 6% of the UKs
man-made greenhouse gas emissions in 2011

43
23

11. Process Safety

11. Process Safety

his section has been produced as one of the key

American Petroleum Institutes (API) Recommended

objectives of UKPIAs commitment to process safety,

Practice

(RP)

754,

Process

Safety

Performance

and in response to the challenges set by the Buncefield

Indicators for the Refining and Petrochemical Industries.

Major Incident Investigation Board regarding sector level

It is on the indicators classified as Tier 1, Tier 2 and Tier 3

reporting for key process safety performance indicators.

that this section is based.

To ensure consistency in reporting these indicators as


an industry sector, UKPIA members have adopted the

11.1 Tier 1 PSE Rate

11.2 Tier 1 events, refineries

Process Safety Event Rate

Events - Refineries
25
20
15
10
5
0

0.80
0.60
0.40
0.20
0.00
2010

2011

2012

2013

2014

2015

Tier 1 Events

PSE Rate per million hours


worked

Source: UKPIA

Source: UKPIA

The Tier 1 PSE Rate provides an indication of the


number of Tier 1 Process Safety Events (PSE) that
have occurred against the total number of hours
worked, this is normalised per million hours

The number of Tier 1 events reported at refineries in


a 12 month period

11.3 Tier 1 events, terminals


Events - Terminals

2
1
0

Source: UKPIA

44

Tier 1 Events

The number of Tier 1 events reported at terminals in a


12 month period

11.5 Tier 1 events by



consequence, terminals

Inland Kerosene Deliveries

Inland Aviation Fuel Deliveries


2

Worker injury
or fatality
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0

Worker injury
or fatality

Third party
injury or
fatality
Community
shelter or
evacuaon
Fire or
explosion
>$25k cost

Source: UKPIA
l

Third party
injury or
fatality
Community
shelter or
evacuaon

Source: UKPIA

The consequences of Tier 1 events at refineries for


a 12 month period. Note that there may be more
than one consequence per Tier 1 event

11.6 Tier 2 PSE Rate

The consequences of Tier 1 events at terminals for


a 12 month period. Note that there may be more
than one consequence per Tier 1 event

11.7 Tier 2 events, refineries

Process Safety Event Rate

Events - Refineries
70
60
50
40
30
20
10
0

3.00
2.00
1.00

0.00
2010

11. Process Safety

11.4 Tier 1 events by



consequence, refineries

2011

2012

2013

2014

2015

Tier 2 Events

PSE Rate per million hours


worked

Source: UKPIA
l

The Tier 2 PSE Rate provides an indication of the


number of Tier 2 Process Safety Events (PSE) that
have occurred against the total number of hours
worked, this is normalised per million hours

Statistical Review 2013

Source: UKPIA

The number of Tier 2 events reported at refineries in


a 12 month period

45
23

11. Process Safety

11.8 Tier 2 events, terminals

11.9 Tier 2 events by



consequence, refineries

Events - Terminals

Events by Consequence - Refineries

5
4
3
2
1
0

Recordable
injury

Tier 2 Events

Source: UKPIA
l

60
55
50
45
40
35
30
25
20
15
10
5
0

Source: UKPIA

The number of Tier 2 events reported at terminals in


a 12 month period

The consequences of Tier 2 events at refineries for


a 12 month period. Note that there may be more
than one consequence per Tier 2 event

11.11 Tier 3 Number of High


Alarm Activations on
PSLG Scope Finished
Gasoline Tanks*

11.10 Tier 2 events by



consequence, terminals
Events by Consequence - Terminals
4

3
2

1
0

Fire or
explosion
>$2.5k cost
PR device
discharge to
atmosphere
Loss of
primary
containment

Number of High High Alarm Activations


(Finished Gasoline Tanks)

Recordable
injury

1
0

Fire or
explosion
>$2.5k cost

2010 2011 2012 2013 2014 2015

PR device
discharge to
atmosphere

Number of
High High
Alarm
Acvaons
(Finished
Gasoline)

Source: UKPIA
Source: UKPIA
l

46

The consequences of Tier 2 events at terminals for


a 12 month period. Note that there may be more
than one consequence per Tier 2 event

High alarm activation provides an indication of


the number of times a safety related (or instrumented)
system has been activated on finished gasoline tanks
which fall under the scope of the PSLG report

*1. Excludes spurious trips and activations due to planned alarm testing
2. The definition of PSLG scope finished gasoline tanks can be found in
the final PSLG report, paragraph 24

he refining and marketing industry continued to

in terms of refining employee safety performance with

maintain very high standards of occupational safety

European competitors. Particularly strong improvements

during 2012. It remains one of the safest manufacturing

have been made in contractor safety since the 1990s and

industries in the UK, with proportionately fewer injuries

these have been helped by the introduction of Contractor

occurring than in the manufacturing sector as a whole.

Safety Passport Schemes.

The UK downstream industry also compares favourably

12.1 RIDDOR >3 day Injuries



by Sector

12.2 RIDDOR >3 day Injuries



by Category of Worker
RIDDOR >3 Day Injuries

600

600

500

500

400
300

200
100
0

Offshore All Manuftg

All UK

All Service

Ref
Cont

Mkt
Empl

Ref
Empl

Source: UKPIA / HSE


l

Significantly fewer injuries (RIDDOR >3 day) occur


at refineries than in the manufacturing sector as a
whole

Injuries in downstream oil marketing were at a


record low in 2012, with zero RIDDOR > 3 day
injuries recorded

>3day injuries/100,000 workers

>3day injuries/100,000 workers

RIDDOR >3 Day Injuries 2011-12

NB: Previous editions used extraction of crude/gas as one of the



indicators in the 12.1 graph, but did not include data on offshore. This

year we use offshore data for a better comparison.

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

400
300
200
100
0

Mkt Employees

Refy Employees

Refy Contractors

Source: UKPIA

Statistical Review 2013

12. Occupational Health and Safety

12. Occupational Health and Safety

In 2012, the frequency of injuries (RIDDOR >3 day)


fell further for marketing employees and refinery
contractors to their lowest levels recorded

The number of refinery employee injuries increased


again in 2012 despite a record low in 2011.
These occurred during maintenance turnaround
and recommissioning activities
Marketing statistics include filling station staff
directly employed by some companies

47
23

12.4 Refining Lost Work



Injury Frequency

Refining Injuries

Refining Lost Work Injury Frequency

2006

Source: UKPIA

l
In 2012, restricted work injuries fell to lowest levels
ever recorded, whilst the number of medically
treated cases was only a tenth of those reported in
2000

This reflects a continued high level of attention to


safe practices

 ontractor lost work injuries at refineries has


C
reduced in frequency over the years as a result of a
new Contractor Safety Passports scheme, but rose
in 2011

Refining LWIF decreased in 2012 for contractors,


and only slightly increased in frequency for
employee injury

12.6 Marketing Lost Work



Injury Frequency

12.5 Refining Lost Work



Injuries

Marketing Lost Work Injury Frequency

Ref Staff

Ref Contr

4
2

2001 02 03 04

05

06

07

08

UKPIA

09

10

11 2001 02

03

04

05

06

07

08

09

10

11

CONCAWE

Source: UKPIA / CONCAWE


l

48

 omparisons with European safety data from


C
CONCAWE indicate that UK refinery employees are
less likely to suffer a lost work injury than European
counterparts

In 2011, refining contractors in the UK were 80%


less likely to miss work due to an injury than their
European counterparts
CONCAWE (Conservation of Clean Air and Water in
Europe) is the European oil industry technical body
focussed on environment, health and safety

Lost work injuries/million hrs

Lost work injuries/million hrs

Refining Lost Work Injuries


8
6

2012

Source: UKPIA

Injuries reported at refineries continue to fall or


remain in the low quartile

2011

Lost Work Injuries

2010

Restricted Work Injuries

2008

Medical Treatment Cases

Employ ee

2009

2007

50

Contractor

2006

100

2005

150

2004

200

2003

Lost work injuries/million hrs

250

2002

2005
2012

2001

2004
2011

2000

2003
2010

1999

2002
2009

1998

2001
2008

1997

2000
2007

Reported incidents

12. Occupational Health and Safety

12.3 Refining Injuries

10
8

Contractor

4
2
0

Employ ee
2000

2002

2004

2006

2008

2010

2012

Source: UKPIA

Lost work injuries amongst marketing contractors and


employees have in recent years converged and
continue to be in the very low levels seen over the past
few years

The Contractor Safety Passport Scheme for


forecourt contractors introduced by UKPIA in 1999
helped achieve this

NOTES

Statistical Review 2013

49
23

NOTES

50

NOTES

Statistical Review 2013

51
23

UNITED KINGDOM

United Kingdom Petroleum Industry Association, Quality House, Quality Court, Chancery Lane, London WC2A 1HP
Tel: 020 7269 7600 E-mail: info@ukpia.com Website: www.ukpia.com