STATISTICAL REPORT 2016 Editor: John Cooper Copyright © Fuelseurope

Printed in Belgium - Designed by www.morris-chapman.com STATISTICAL REPORT 2016 FuelsEurope #FuelsEurope

www.youtube.com/fuelseurope www.fuelseurope.eu Statistical Report 2016 5

Foreword

Verified and reliable data is essential to support A side navigation as well as the colour coding economic and political analysis. In this respect aim at helping our readers browse effortlessly FuelsEurope Statistical Report 2016 aims at through the document. Each colour corresponds providing a comprehensive set of statistics to a specific theme making browsing between about the refining industry that will be used by subsections user-friendly. We hope that you will all stakeholders. This 3rd edition, with a new look find this Report useful. and user-friendly format provides the most up- to-date information based on currently available • Oil & Energy data about the sector. • Oil Products The latest 2016 edition contains data on global • Prices and Margins energy markets, oil products demand and international trade flows, fuel specifications, prices • Refining and margins, close integration with petrochemical • Marketing Infrastructures sector as well as the environmental performance of the EU refining industry.

John Cooper Director General 6 Statistical Report 2016 Statistical Report 2016 7

FIG.1 WORLDWIDE ENERGY CONSUMPTION BY FUEL TYPE IN 2014 Source: BP Statistical Review of World Energy 2015

7% 2% orl 4% ropea io 33% il cosptio is easre i illio toes oter els i illio toes o oil eialet toe WORLD: 30% 12 928 Mtoe Mtoe

000 24% 00 4 211 000 3 882

00 5% 7% 3 066 000 12% 2 00 37%

2 000 EU:: 17% 1 611 Mtoe 1 00

1 000 879 593 574 22% 00 348 317 270 198 84 119

it illio toes a oil eialet toe 0

il atral oal clear ro Reeales as eer electricit

Oil, natural gas and coal remain the dominant source of energy including hydro electricity remains small (9%). The EU, unlike fuelling the global economy (together 86%). Oil remained the other major economies, has a higher share of nuclear (12%) and main energy source globally. The overall share for renewables, renewables and hydro (12%) in its energy mix. 8 Statistical Report 2016

FIG.2 WORLDWIDE ENERGY CONSUMPTION BY REGION IN 2014 Source: BP Statistical Review of World Energy 2015

OIL COAL

24% OTHERS 20% USA 14% OTHERS 12% USA

3% AFRICA 7% EU-28 9% INDIA 3% JAPAN 8% SOUTH AND Total energy 14% EU-28 Total energy 2% RUSSIA CENTRAL 4 211 Mtoe 3 882 Mtoe it toe AMERICA

9% MIDDLE EAST 5% JAPAN

4% INDIA 4% RUSSIA 12% CHINA 51% CHINA

Global energy consumption grew by 1% in NATURAL GAS 2014. EU-28 share of oil (14%) and coal (7%) consumption remained at the same level. However, 25% OTHERS 23% USA the EU’s share of natural gas consumption decreased by 2% (11%). As presented in figure 1, oil (36%) and natural gas (24%) remain the main energy consumed in the EU (60%).

5% SOUTH Coal is the main energy source consumed in AND China and India and together these two countries CENTRAL Total energy 11% EU-28 are responsible for 60% of the global coal AMERICA 3 066 Mtoe consumption.

14% MIDDLE EAST 3% JAPAN Note: Oil consumption is measured in million tonnes; other fuels in million tonnes of oil 1% INDIA equivalent (Mtoe). Please note that due to rounding, figures 5% CHINA 12% RUSSIA may not add up exactly to 100%. Statistical Report 2016 9

FIG.3 WORLDWIDE CRUDE OIL MOVEMENT IN 2014 Source: BP Statistical Review of World Energy 2015

31.9 296.4 27.3 22.0

45.8 15.6 18.1 157.0 167.7 101.6 78.4 26.8 171.7 39.0 26.5 16.9 59.5 30.8 19.6 41.8 93.0 53.3 121.1 79.2 19.9 25.4 47.4 63.7 237.0 37.5 18.2

22.8 it illio toes per ear

28.9 S 57.4 34.4 37.2 S R R R RS S Crude oil is an internationally traded commodity with trade flows taking place all over the world. R S There are two open and transparent markets - crude oil and refined products - within which the European refining industry operates. R S 201 10 Statistical Report 2016

FIG.4 WORLDWIDE REFINED PRODUCT DEMAND AVERAGED 92.1 MILLION BARRELS PER DAY IN 2014, WITH EUROPE ACCOUNTING FOR 15% Source: BP Statistical Review of World Energy 2015

OTHER ASIA PACIFIC 13% 25% NORTH AMERICA

EURASIA 1%

JAPAN 5%

INDIA 4%

Total 92.1 Mbd 8% SOUTH AND CHINA 12% CENTRAL AMERICA

4% RUSSIA AFRICA 4%

MIDDLE EAST 9% 15% EUROPE ofof which which EU: 13% and Non EU: 2%

Global demand for oil refined products increased from 91.3 largest in the world (15%) behind North-America (25%). China, million barrels per day in 2013 to 92.1 in 2014. Although the Middle East and Africa noted a major growth, between 2.8 European market is declining, it still remains the second and 4.2% in demand for refined products. Statistical Report 2016 11

FIG.5 WORLDWIDE REFINING SUPPLY/MARKET DEMAND BALANCES IN 2015 Source: Wood Mackenzie

1009 1 045 282 139 706 733 RUSSIA

NORTH EUROPE 513 535 158 209 AMERICA 367 400 JAPAN CHINA 116 178 MIDDLE EAST AFRICA 716 276 341 661

LATIN

it illio toes per ear AMERICA ASIA & OCEANIA

RR R R R RS

The refining supply/market demand balance shows that Relatively balanced product demand and refinery throughput most of the regions are dependent on imports to meet in the EU hide a large surplus of EU gasoline production and market demand. Russia has a positive trade balance which a significant shortage of diesel and jet production. provides Russia in particular a key role in supplying demand from other regions. 12 Statistical Report 2016

FIG.6 EU TOTAL OIL DEMAND AMOUNTED TO 610.3 MILLION TONNES IN 2015 Source: Wood Mackenzie

COUNTRY Mt/y COUNTRY Mt/y stria 12.5 tal 59 eli 28.9 atia 1.7 laria 4.0 itaia 2.4 roatia 3.0 eor 2.8 prs 2.6 alta 2.6 ec Replic 9.2 eterlas 44.4 ear 7.2 ola 24.9 stoia 1.5 ortal 11.1 ila 9.1 Roaia 9.8 race 80 Sloaia 3.8 era 116.3 Sloeia 2.4

it illio toes per ear reece 12.9 Spai 61.1 ar 6.6 See 12.9 rela 6.7 ite io 69.9 EU TOTAL 610.3 ora 9.8 Siterla 11.3 re 38.1 TOTAL NO + CH + TR 59.2 TOTAL 669.5

EU-28 total oil demand amounted to 610.3 Mt for 2015, EU Member States such as Slovakia (-6.17%), Luxembourg representing a slight decrease of approximatively 1% (-5.34%) and Hungary (-4.76%) faced the biggest fall in oil compared to 2014. demand.

Most EU Member States recorded a decrease in demand. Note: Please note that due to rounding, figures may not add While the major EU Member States such as Germany (-1.04%) up. and the UK (-1.91%) recorded only a small decrease, smaller Statistical Report 2016 13

FIG.7 DEMAND HISTORY OF OIL PRODUCTS IN THE EU Source: Wood Mackenzie

41.2 00 69.2 otal ea 201 616.8

600 25.7 28.7 50.4 48.1

111.6 29.4 00 46.0 79.6 54.5 00 288.8 55.1 283.0 00

200 it illio toes per ear

100 93.2 46.6 0 200 2006 200 200 200 2010 2011 2012 201 201 201

Since 2009, we can observe a downward trend for oil products demand in the EU. Over the past SS 6 years, overall demand has declined by 8%. The downward trend is mainly driven by the decrease RS R RS in fuel oil and gasoline, whilst gasoil and kerosene S RR SS decreased insignificantly. 14 Statistical Report 2016

FIG.8 AVERAGE REFINERY OUTPUT BY PRODUCT TYPE IN OECD EUROPE IN 2013 Source: OECD

39% DIESEL/GASOIL

1.3% LUBRICANTS OTHER PRODUCTS 4% 5.7% NAPHTHA BITUMEN 3.4% 0.2% WHITE SPIRITS REFINERY GAS AND ETHANE 3.4% 6.8% KEROSENE LPG 2.5% 0.1% PARAFFIN WAXES

13.0% FUEL OIL

GASOLINE 19.2% 1.4% PETROLEUM COKE

A wide range of products, from transportation and industrial for transport and industry, petroleum coke for the metal fuels to chemical feedstock, are produced from crude oil. industry as well as waxes, solvents and other specialised EU refineries also produce many specialty products such products. Fuels for transport represent the biggest share of as bitumen for road construction and roofing, lubricants the production. Statistical Report 2016 15

FIG.9 ROAD FUEL DEMAND IN THE EU Source: Wood Mackenzie

00000 3.00

20000 2.50

200000 2.00

10000 1.50 ieselasolie ratio 100000 1.00 it ilotoes per ear

0000 0.50

0 0.00 2000 2001 2002 200 200 200 2006 200 200 200 2010 2011 2012 201 201 201

S S R

The tax-incentivised dieselisation trend has significantly well as a shortage of diesel production in the EU. Gasoline contributed to a fundamental change in the EU road fuel demand continues to decline while diesel demand is on the demand structure. The shift from gasoline to diesel began rise, currently reaching a 2.6 demand ratio in 2015. some 25 years ago and led to a major demand decline as 16 Statistical Report 2016

FIG.10 ROAD FUEL DEMAND IN THE EU BY COUNTRY IN 2015 Source: Wood Mackenzie

36% era 64% 16% race 84% 35% ite io 65% 26% tal 74% 17% Spai 83% 24% ola 76% 39% eterlas 61% 12% eli 88% 39% See 61% 22% stria 78% 32% ec Replic 68% 54% reece 46% 22% ortal 78% 27% Roaia 73% Spurred on by favourable excise taxes on 30% ar 70% diesel, the shift from gasoline to diesel 34% ear 66% over the past two decades led to a higher 33% rela 67% demand for diesel as a road fuel in the vast majority of EU Member States. 36% ila 64% 24% Sloaia 76% In some countries, such as France and 13% eor 87% Spain the imbalance is far more pronounced 21% laria 79% as a result of very favourable tax policies for 32% roatia 68% diesel. 28% Sloeia 72% The continued growth in truck transport in 17% itaia 83% the EU, driven by the internal market and 22% atia 78% external trade, has further contributed to 50% prs 50% spurring diesel demand. 38% stoia 62% 39% alta 61%

20 1 10 - - 10 1 20 2 0

it illio toes per ear S S Statistical Report 2016 17

FIG.11 NET TRADE FLOWS FOR REFINED PRODUCTS DEMONSTRATE THE TREND OF GROWING GASOLINE SURPLUS AND DIESEL / GASOIL / JET FUEL DEFICITS Source: Eurostat

60 et asolie eports 0 2 100 toes

10 et asoil iports 1 1 toes it percetae iportspercetae eports 20

0 et et el iports 16 toes 0 2000 2001 2002 200 200 200 2006 200 200 200 2010 2011 2012 201 201

S The EU is facing significant excess gasoline production capacity, but is however unable to meet regional demand for diesel and SS jet fuel. 18 Statistical Report 2016

FIG.12 MAJOR GASOLINE AND DIESEL/GASOIL TRADE FLOWS TO AND FROM THE EU IN 2014 Source: Eurostat

EU 77.6 253.2 20.6 RUSSIA 15.8 NORTH AMERICA 13.3 5.3 ASIA

7.0 ASIA 12.8

AFRICA it illio toes per ear

The major trade flows to and from the EU are a result of the gasoline/ S 201 diesel imbalance demand in Europe. As a consequence, significant excess SS 201 gasoline production capacity needs to be exported, while, to meet regional demand for diesel and jet fuel, Europe became heavily reliant on other S R S 201 countries for import, especially Russia, the Middle East & USA. SS R S 201

North America was the traditional market for exporting gasoline surplus but the recent shale oil revolution and cheap energy enabled US refiners to increase their supplies for their internal market and compete on other export markets with EU refiners. Statistical Report 2016 19

FIG.13 EU GASOLINE TRADING BALANCE: USA IS A KEY EXPORT MARKET FOR THE EU Source: Eurostat

EXPORT 2014 7% 62% 31%

2013 11% 58% 32%

2012 10% 56% 34%

2011 6% 61% 33%

2010 9% 58% 33%

2009 9% 52% 39%

2008 12% 44% 44%

2007 10% 41% 50%

2006 11% 34% 55%

2005 12% 32% 56%

2004 15% 23% 63%

2003 19% 22% 59%

2002 19% 22% 59%

2001 24% 23% 54%

2000 23% 27% 50%

0 5 10 15 20 25 30 35 40 45 50

Note: Please note that due to rounding, Unit: Million tonnes per year ﬁgures may not add up exactly to 100%

EUROPE NON EU The US was the traditional export market for the structural EU gasoline surplus. The recent shale oil boom has decreased export opportunities to REST OF THE WORLD the US and forced EU refiners to find other markets, primarily Africa and Asia. USA The EU gasoline surplus in 2014 has decreased by 1% versus 2013. Comparatively, the share of the US has decreased from 44% of the total exports in 2008 to 31% in 2014. 20 Statistical Report 2016

FIG.14 EU DIESEL/GASOIL TRADING BALANCE: RUSSIA IS A LEADING EXPORTER OF GASOIL TO THE EU Source: Eurostat

IMPORT EXPORT

37% 63% 2014

44% 56% 2013

49% 51% 2012

44% 56% 2011

29% 71% 2010

36% 64% 2009

37% 63% 2008

6% 94% 2007

9% 91% 2006

15% 2% 83% 2005

10% 90% 2004

100% 2003

2% 98% 2002

2% 98% 2001

1% 99% 2000

40 30 20 10 0 10 20

Note: Please note that due to rounding, Unit: Million tonnes per year ﬁgures may not add up exactly to 100%

NORTH AMERICA After a significant increase of imports of gasoil from the US between 2008 and 2013, Russia recovered some of the lost shares in 2014 RUSSIA to remain the leading exporter of gasoil to the EU. This continued REST OF THE WORLD dependence of the EU on imports of gasoil is the result of the diesel/ gasoline imbalance that the EU has faced for many years. Statistical Report 2016 21

FIG.15 EU JET FUEL TRADING BALANCE: MIDDLE EAST REMAINS MAIN JET FUEL SUPPLIER FOR THE EU Source: Eurostat

R R 12% 28% 60% 201 11% 28% 61% 201 14% 23% 63% 2012 4% 33% 64% 2011 11% 25% 64% 2010 18% 34% 48% 200 14% 38% 48% 200 10% 17% 73% 200 21% 15% 65% 2006 27% 10% 63% 200 20% 6% 74% 200 17%5% 78% 200 38% 4% 59% 2002 24% 76% 2001 33% 66% 2000

20 1 10 0 it illio toes per ear

RS R S There is a growing EU dependence on jet fuel imports originating mainly from the Middle-East. S R Note: Please note that due to rounding, figures may not add up exactly to 100%. 22 Statistical Report 2016

FIG.16a GLOBAL MARINE FUEL CONSUMPTION Source: Wood Mackenzie

20 000 The global demand for marine fuel is mainly met by 200 000 161 658 fuel oil (85%) while gasoil 158 648 only represents 15% of the market. 10 000 The new limits for sulphur content of marine fuels 100 000 S could drastically change the market with a massive 0 000 demand for low sulphur 41 819 distillates, requiring major 26 620

it osptio 1000 toes refinery investments. 0 200 200 200 2011 201 201

FIG.16b MARINE FUEL CONSUMPTION IN THE EU Source: Wood Mackenzie

60 000 The past year saw a rise in marine gasoil consumption 45 026 0 000 at the expense of fuel oil.

27 591 Switching to LNG or using 0 000 scrubbers are alternatives to meeting the new International 0 000 Maritime Organisation (IMO) S emissions limits. 20 000 15 648 10 000 6 752 it osptio 1000 toes 0 200 200 200 2011 201 201 Statistical Report 2016 23

FIG.17a EU ROAD DIESEL SULPHUR SPECIFICATIONS Source: PFC Energy

6000 The sulphur content of road fuels has been reduced from 5500 000 ppm in 1975 to sulphur free in 2010, as a result of the use of sophisticated emissions control 000 technologies by vehicles.

000

2000 a slpr cotet pp 1000

0 1 10 1 10 1 2000 200 2010 201

FIG.17b EU OFF-ROAD DIESEL SULPHUR SPECIFICATIONS Source: PFC Energy

6000 In addition to the environmental benefits arising from reduced sulphur dioxide (SO ), the use 000 2 of 10 ppm sulphur gas oil is also essential for the effective 000 working of abatement technology in engines fitted in newer non- 000 road mobile machinery, including tractors, which are manufactured to meet stringent new EU emission 2000 standards for oxides of nitrogen

(NOX).

a slpr cotet pp 1000

0 1 10 1 10 1 2000 200 2010 201 24 Statistical Report 2016

FIG.18 MARINE FUEL SULPHUR SPECIFICATIONS SULPHUR EMISSION CONTROL AREAS (SECAs) Source: European Commission

ESTABLISHED ECAs POSSIBLE ECAs

Limits for the sulphur content of marine fuels in SECAs: Since January 2015, all vessels in the Emission Controlled Area 1% until 31 December 2014 (ECA) of the Baltic Sea, North Sea, English Channel and waters 0.1% since 1 January 2015 200 nautical miles from the coast of US and Canada, had to reduce their sulphur emissions to 0.1%. Vessels are required to use either a distillate, an alternate fuel or install a scrubber that removes sulphur from the exhaust after combustion. Statistical Report 2016 25

FIG.19a PM EMISSIONS FROM EXHAUST IN THE EU REDUCED BY OVER 50% Source: European Environment Agency

PM2.5 PM10 00 00

0 0

00 00

20 20

200 200

10 10

100 100

0 0

it iaras 0 0 10 16 2002 200 2012 10 16 2002 200 2012

2 erall trasport eissios 10 erall trasport eissios

2 ast eissios 10 ast eissios

PM emissions are continuously decreasing as the result of With the EURO6 standard, modern road vehicles with diesel cleaner diesel fuel, advanced engines and effective emissions engines are using highly efficient filters that remove over control technology. 99.9% of the number of PMs. 26 Statistical Report 2016

FIG.19b SINCE 1990 FUELS ARE GETTING PROGRESSIVELY CLEANER RESULTING IN SIGNIFICANT EMISSIONS REDUCTIONS Source: European Environment Agency

000

NOx 000 00

SOx 6000 600

000 00

2000 200

1000 100

0 0 10 2000 2012 10 2000 2012

6000 000

it iaras NMVOC CO 0000 000 2000 000 20000 000 1000 2000 10000

1000 000

0 0 10 2000 2012 10 2000 2012

Since 1990 the refining industry has contributed to cleaner NOX - Nitrogen Oxides exhausts by today containing over 80% lower SO , NMVOC X SOX - Sulphur Oxides

& CO, while NOX emissions decreased by over 50%. These NMVOC - Non Methane Volatile Organic Compounds significant improvements are the result of the partnerships CO - Carbon Monoxide with the automotive industry aiming at improving the fuel- engine efficiency and leading to multiple environmental benefits. Statistical Report 2016 27

FIG.20 MAXIMUM ON-ROAD DIESEL SULPHUR LIMITS Source: Hart Energy Research and Consulting, 2015

10 1 16 0 1 0 1 00 01 2000 2000 o ioratio

Europe together with the USA, Canada, Japan, Australia different grades, regions/cities, or based on average content. and Chile apply the lowest (10-15 PPM) on-road diesel sulphur Detailed information on limits and regulations can be found at limits in the world. Countries may apply lower limits for www.stratasadvisors.com 28 Statistical Report 2016

FIG.21 MAXIMUM GASOLINE SULPHUR LIMIT Source: Hart Energy Research and Consulting, 2015

0 10 11 0 1 0 1 10 11 00 01 00 o ioratio

The EU has set the most stringent environmental specifications Countries may apply lower limits for different grades, regions/ for sulphur in gasoline worldwide with a maximum level of 10 cities, or based on average content. Detailed information on PPM. limits and regulations can be found at www.stratasadvisors.com Statistical Report 2016 29

FIG.22 CRUDE OIL PRICE EVOLUTION Source: Energy Information Administration

160

10 R 201

120

100

it rope ret spot price S ollar per arrel ot aerae 0

a10a11a12a1a1a1a16a1a1a1a2000a2001a2002a200a200a200a2006a200a200a200a2010a2011a2012a201a201a201ec201

The EU Refining industry operates between two global, open After a decade of relatively low prices, oil started rising last and transparent markets: the market for crude oil and the market decade, leading to peaks just before the financial crisis in 2008. for refined products. The main benchmarks are priced in dollars. In the summer of 2014, oil prices started to fall sharply reaching closing prices below 40 $ in December 2015. The price of crude oil is set on international spot markets and reported by designated agencies. The price of oil is an important marker for the global economy and is closely watched by businesses and policy-makers. 30 Statistical Report 2016

FIG.23 BRENT V WTI Source: Energy Information Agency (EIA)

120

100

0 it erae aal price Sl

0 200 2006 200 200 200 2010 2011 2012 201 201 201

ret

Brent and West Texas Intermediate are two of the main crude costs, though this differential decreased last year. The lifting of oil benchmarks. Historically, these crudes, of similar quality, the US crude oil export ban is one of the reasons that led to the have traded at similar prices. Recent years saw Brent trade at narrowing of the spread between North Sea Brent and U.S. West a premium to WTI, meaning EU refiners generally faced higher Texas Intermediate. Statistical Report 2016 31

FIG.24 REFINERS’ NET CASH MARGIN ACROSS REGIONS Source: Solomon Associates

600

200 it ee et as ari Sl

100

100 2000 2002 200 2006 200 2010 2012 201

et as ari i S l or all reios iee relatie to 100 i ear 2000

2 After a great decrease for the net cash margin between 2008 and 2010, all the regions are now experiencing positive results. The EU remains however, behind the other oreaSiapore regions and the gap with Korea/Japan and US Gulf Coast has grown further. ile ast Whilst the data stops in 2014, preliminary results for 2015 show some strong S l oast improvement for EU refiners as a result of the big price decrease of crude oil. 32 Statistical Report 2016

FIG.25 REFINERS OPERATE BETWEEN TWO GLOBAL COMMODITY MARKETS: CRUDE MARKET AND REFINED PRODUCTS MARKET Source: Wood Mackenzie & Argus Media

160

120 R S 100 S 0 S R 60 S R

0 EU refining operates between two global it erae earl prices S ollar per arrel commodity markets, the crude market 1161112000200120022002002002006200200200201020112012201201 and the refined products market.

The ‘crack spread’ represents the 10 difference between the cost of crude oil and the market sales price for refined 120 products. Generally, product prices rise with crude prices but the drivers of the 100 difference are many. In historic terms, the profitability has started to decline in a 0 context of falling demand (2008). 60 Whilst 2012 saw a small improvement for refiners, the spread is generally tight- 0 margins are low and the industry is highly vulnerable to the operating costs 20 that must be deducted from the spread 0 before profitability can be considered.

it erae earl prices S ollar per arrel 1161112000200120022002002002006200200200201020112012201201 Statistical Report 2016 33

FIG.26 EU CASH OPEX OPERATING YEARS 2000 - 2014 Source: Concawe

00 0 s a 00 e e 0

00 it 20

200

100

0 2000 2002 200 2006 200 2010 2012 201

2 ile ast Cash OPEX in US $/bbl for all regions indexed relative to 100 in year 2000. oreaSiapore S l oast Since 2000, the EU has suffered greater operating costs than the Middle-East and the USA, putting it at a competitive disadvantage. In recent years the US Gulf Coast has seen operating costs fall, largely due to cheaper gas from unconventionals. 34 Statistical Report 2016

FIG.27 AVERAGE ESTIMATED QUANTIFIABLE IMPACT OF THE LEGISLATION ON EU REFINERIES DURING 2000-2012 BARREL OF THROUGHPUT Source: European Commission, Sectoral fitness check for the petroleum refining sector

00 0.47 EUR/bbl 0 strial issios 00 Reeale er ioel ap 0 Reeale er 00 oelle et oreoe earis 02 el alit 020

01 it Rl o tropt

010

0 pact ri 2000 2012

The Commission Fitness Check concluded that refiners suffered in competitiveness versus regional peers. The European additional costs of 0.47€ per barrel due to EU regulation from Commission Refining Fitness Check was published in December 2000 to 2012, accounting for a quarter of the sector’s decline 2015 after almost three years of analysis. Statistical Report 2016 35

FIG.28 CUMULATIVE COST IMPACT OF EU LEGISLATION IN 2020 Source: Concawe ) l 12.0 12.0 b b

/ Low cost High cost $

( 11.5 scenario 11.5 scenario 2020 2020 s r e 11.0 11.0 n ﬁ ) l e r b 10.5 10.5 b U / E $

(

10.0 o 10.0 s t

r t e s n o 9.5 9.5 ﬁ c

e r d

e 9.0 9.0 U t E a

o m i 8.5 t 8.5 t t s s

8.0 o 8.0 c

d e Unit: E 7.5 t 7.5 a m i

7.0 t 7.0 s E 6.5 6.5

6.0 6.0 Baseline ETS IED REACH RED SLFD Baseline ETS IED REACH RED SLFD opex (MFD) opex (MFD)

This chart provides an estimation of the cost burden likely to be ETS - Emission Trading Scheme (2009/29/EC) imposed on EU refineries over the period 2010 to 2020 as a IED - Industrial Emission Directive (2010/75/EC) result of a number of EU legislative and implementing acts. It REACH - Registration, Evaluation, Authorisation & Restriction shows the cumulative impact in a low and high cost scenario, of Chemicals (Regulation 1907/2006) expressed in dollars per barrel of refinery intake. These estimated RED - Renewable Energy Directive (2009/28/EC) costs impacts should be seen in the context of the EU refining SLFD - The Sulphur in Liquid Fuels Directive (1999/32/EC) net margin not exceeding 3$/bbl in the past years (source: IEA OPEX - Operating Expense Oil Market Report). For EU ETS, ‘low cost scenario assumes 16.5 €/t CO2, high cost

The legislation under consideration has the potential to scenario 30 €/t CO2. significantly increase the operating costs of the EU refining industry, thereby impairing its competitive position relative to other world regions where similar legislation is not enacted or is enforced at later dates. 36 Statistical Report 2016

FIG.29 FUEL TAXES MAKE A SIGNIFICANT CONTRIBUTION TO MEMBER STATE NATIONAL INCOME Source: Eurostat and Wood Mackenzie

SS 10 COUNTRY SHARE R 10 laria 1 R Sloeia 12

R Roaia 11 stoia 10 10 R roatia 10 itaia 10 10 ec Replic prs 6 6 atia ola S Sloaia ar reece 12 11 10 ortal eor 1 rela 6 S Spai 6 6 ite io 6 alta tal

eterlas stria era Taxes on fuels contribute on average to 7% of Member State tax revenue. This S See significant contribution to Member State revenue has to be put in perspective eli with the subsidies given to many competing alternatives to oil. This demonstrates ila that replacing petroleum products by these alternatives would have severe R race consequences for Member States income. ear

Figures are based on 2014 tax revenues. Statistical Report 2016 37

FIG.30 TOTAL TAXATION SHARE IN THE END CONSUMER PRICE Source: European Commission

RSR R S

EURO-SUPER 95 ROAD DIESEL OIL COUNTRY % COUNTRY % 60 United Kingdom 74 United Kingdom 73 606 FI Netherlands 71 Italy 68 67 61 Sweden 70 6 France 66 Italy 69 SE EE Sweden 66 Greece 68 70 66 59 58 Slovenia 65 DK Germany 68 IE Netherlands 63 LV 59 55 67 62 64 57 Ireland 67 Germany 63 UK LT 59 53 France 67 NL Ireland 62 74 73 Finland 67 71 63 DE PL Finland 61 Slovenia 66 BE 65 61 68 63 59 56 Belgium 61 SK Slovakia 66 LU 58 52 CZ 64 56 Croatia 60 Belgium 65 FR 66 58 Slovakia 58 AT 62 58 RO Portugal 65 67 66 58 57 Austria 58 SI 68 65 Denmark 64 HR HU 58 57 Cyprus 58 PT Czech Republic 64 ES 64 60 BG Estonia 58 65 57 IT Croatia 64 58 56 51 48 Portugal 57 69 68 Austria 62 Denmark 57 Cyprus 59 GR Romania 57 68 52 Lithuania 59 Hungary 57 Latvia 59 Czech Republic 56 MT CY Poland 59 Spain 56 57 54 59 58 Estonia 59 Poland 56 Romania 58 Latvia 55 The price at the pump is driven to a large degree by tariffs and taxes and, on Hungary 58 Malta 54 average, over half the cost of fuel at the pump represents taxes. The taxes on Spain 58 gasoline are generally higher than for diesel. This differential tax treatment has Lithuania 53 Luxembourg 58 driven a demand shift over the past 20 years. Fuels taxes contribute substantially Greece 52 Malta 57 to Member State revenues. Luxembourg 52 Bulgaria 51 Bulgaria 48 Note: Share at January 2016 38 Statistical Report 2016

FIG.31 BREAKDOWN OF AUTOMOTIVE DIESEL PRICES ACROSS EU (FEBRUARY 2016) Source: European Commission

PRODUCT TARIFFS VAT ite io 0.338 0.737 0.215 1.290 See 0.415 0.599 0.254 1.268 alta 0.562 0.472 0.186 1.220 tal 0.366 0.617 0.216 1.199 ila 0.408 0.493 0.216 1.118 ortal 0.417 0.466 0.203 1.086 ear 0.445 0.422 0.217 1.084 prs 0.426 0.461 0.168 1.055 eterlas 0.378 0.492 0.183 1.053 rela 0.346 0.499 0.194 1.039 race 0.340 0.511 0.170 1.021 eli 0.378 0.465 0.177 1.020 era 0.378 0.470 0.161 1.009 Sloeia 0.326 0.487 0.179 0.992 roatia 0.385 0.401 0.196 0.982 Roaia 0.394 0.424 0.164 0.981 reece 0.454 0.338 0.182 0.974 ar 0.404 0.359 0.206 0.969 Sloaia 0.386 0.406 0.159 0.951 stria 0.382 0.410 0.158 0.950 stoia 0.390 0.393 0.157 0.939 Spai 0.400 0.368 0.161 0.930 R ec Replic 0.357 0.405 0.160 0.922 RS itaia 0.393 0.330 0.152 0.875 atia 0.371 0.350 0.152 0.873 it rice i ro laria 0.392 0.330 0.144 0.866 per litre eor 0.401 0.335 0.125 0.862 ola 0.352 0.335 0.158 0.845

0000 0200 000 0600 000 1000 1200 100

In most EU Member States gasoline prices are generally higher the remainder represents taxes, the biggest share, the purchase than diesel prices due to the higher tax element. Only a fraction of the crude and the distribution and marketing costs. of the price paid at the pump contributes to the refiners’ income, Statistical Report 2016 39

FIG.32 BREAKDOWN OF AUTOMOTIVE GASOLINE PRICES ACROSS EU (FEBRUARY 2016) Source: European Commission

PRODUCT TARIFFS VAT eterlas 0.515 0.774 0.271 1.560 tal 0.539 0.728 0.279 1.547 ite io 0.453 0.794 0.250 1.497 ear 0.584 0.612 0.299 1.495 reece 0.517 0.681 0.275 1.473 ila 0.521 0.624 0.275 1.420 See 0.530 0.603 0.283 1.415 ortal 0.531 0.618 0.264 1.413 era 0.511 0.655 0.221 1.387 eli 0.526 0.615 0.240 1.381 race 0.502 0.631 0.227 1.359 alta 0.625 0.519 0.206 1.350 rela 0.473 0.608 0.249 1.329 Sloeia 0.477 0.595 0.236 1.308 Spai 0.561 0.462 0.215 1.237 roatia 0.509 0.477 0.247 1.233 Sloaia 0.449 0.570 0.204 1.223 prs 0.532 0.490 0.194 1.215 Roaia 0.519 0.458 0.234 1.212 stria 0.503 0.493 0.199 1.196 ar 0.519 0.400 0.248 1.168 R eor 0.527 0.462 0.168 1.157 RS itaia 0.501 0.434 0.196 1.131 ec Replic 0.453 0.467 0.193 1.114 it rice i ro stoia 0.498 0.423 0.184 1.105 per litre ola 0.482 0.402 0.203 1.087 laria 0.543 0.363 0.181 1.087 atia 0.465 0.423 0.187 1.075

0000 0200 000 0600 000 1000 1200 100 1600

In most EU Member States, gasoline prices are generally Only a fraction of the price paid at the pump contributes to higher than diesel prices due to the higher tax element. the refiners’ income, the remainder going to Member States and the purchasing of the crude oil.

Statistical Report 2016 41

FIG.33 GLOBAL REFINING CAPACITY AS OF 2014 Source: BP Statistical Review of World Energy 2015

22% 18% North Europe + 6.6% America Eurasia Russia

21 278 17 386 6 338 Unit: thousand barrels daily

6.3% 9.8% 33.6% Latin 3.7% Middlee Asia America Africa East Paciﬁc

6 068 3 553 9 428 32 461

Refining is spread around the world and is a truly global business. over 19% in 2012 to 18% in 2013 but still remains the third The share of Europe and Eurasia refining has decreased from largest refining region. 42 Statistical Report 2016

FIG.34 INVESTMENT IN REFINING SECTOR PER REGION Source: OPEC World Oil Outlook 2015

1.4 Oter Asia-Pacific 0.7 US & Canada

0.6 Latin America

2015 - 2020 0.6 Africa WORLD TOTAL 0.2 Europe 7.1 0.3 Russia & Caspian 1.6 Cina it istillatio capacit aitios illio arrels ail

1.9 Middle East

Note: Please note that due to rounding, figures may not add up

Oter US & Latin Russia & Middle Africa Europe Cina Asia- World Canada America Caspian East Pacific

2015 0 01 00 00 01 0 00 0 1

2016 0 01 00 00 00 02 02 02 10

2017 01 01 00 00 00 01 06 0 12

2018 00 01 00 01 00 0 0 01 12

2019 00 01 02 00 00 0 0 02 1

2020 00 01 0 00 01 0 00 02 11

2015 - 2020 0 06 06 02 0 1 16 1 1 Statistical Report 2016 43

FIG.35 REFINERY/STEAM CRACKER SITES IN EUROPE Source: Concawe & PetrochemicalsEurope

S RR

R RR S RR

A large number of refineries are integrated with or located Such interconnections show how refining is an intrinsic part of very close to steam crackers that produce products for the the industrial value chain and provides the basis for advanced petrochemicals industry. high value products. 44 Statistical Report 2016

FIG.36 83 MAINSTREAM REFINERIES WERE OPERATING IN THE EU, NORWAY AND SWITZERLAND AT THE END OF 2015 Source: Concawe

Number of Number of COUNTRY refineries COUNTRY refineries stria 1 rela 1 eli 3 tal 9 laria 1 itaia 1 roatia 2 eterlas 6 ec Replic 2 ola 2 ear 2 ortal 2 ila 2 Roaia 3 race 8 Sloaia 1 era 11 Spai 9 reece 4 See 3 ar 1 ite io 6 EU TOTAL: Refineries 80 ora 2 Siterla 1 TOTAL NO CH: Refineries 3 TOTAL: Refineries 83

At the end of 2015, there were 83 `mainstream` (capacity above 2.5 Mta) refineries in the EU, Norway and Switzerland. In addition, resol 0 l or 2ta there were 22 small or speciality sites. Statistical Report 2016 45

FIG.37 EU, NORWEGIAN AND SWISS FUELS MAINSTREAM REFINERIES HAD 685 MILLION TONNES OF PRIMARY REFINING CAPACITY IN 2015 Source: Concawe; Oil & Gas Journal

Refining Refining COUNTRY capacity COUNTRY capacity stria 10.4 rela 3.6 eli 37.1 tal 81.1 laria 5.8 itaia 9.5 roatia 8.5 eterlas 63.5 ec Replic 7.9 ola 22.6 ear 8.5 ortal 16.2 ila 13 Roaia 12.4 race 69.8 Sloaia 5.3 era 101.2 Spai 74.6 reece 23.3 See 19.8 ar 7.7 ite io 64.3 EU TOTAL: Refineries 665.9 million tonnes per year ora 16.2 Siterla 3.2 TOTAL NO CH: Refineries 19.4 million tonnes per year TOTAL: Refineries 685.3 million tonnes per year

resol 0 l or 2ta

The 83 refineries operating in the EU-28, Norway and Note: Refining capacity is expressed in million tonnes per year. Switzerland had a primary refining capacity of 685 million Numbers may not add up due to rounding. tonnes in 2015. As a result of additional refinery closures, the capacity has decreased by some 15 million tonnes compared to 2014. 46 Statistical Report 2016

FIG.38 REFINERY CLOSURES IN EUROPE Source: Concawe / IEA

600

200

100

it apacit 0 200 200 2010 2011 2012 201 201

R R R

Since 2008, out of some 100 refineries that were operating in Europe, 17 were closed. Most affected countries by the closures are Italy, France and the UK. Statistical Report 2016 47

FIG.39 OIL PIPELINES - MAP OF EUROPE Source: Concawe

Finland a i Sweden n A Norway h T t L o A N B O T f C I Helsinki E C o A Oslo f N Stockolm l

G Tallinn Estonia

Riga Latia Denmark Copenagen Lituania Great Vilnius

Britain Minsk

Rep. of Dublin Belarus Ireland Te Neterlands Berlin Amsterdam Warsaw

London Poland Germany Belgium

Bruelles

Luembourg Prague Cec Luembourg Rep. Ukraine Paris Sloakia

Bratislaa Vienna Austria Moldoa Budapest SwiterlandLiectenstien Hungary

Bern France Sloenia Romania Lublana agreb Croatia

Bosnia Belgrade Bucarest and San Marino Heregoina Serbia

Saraeo Italy Montenegro Bulgaria Andorra Sofia Podgorica

Rome Skope FYROM Tirana

Albania

Madrid Portugal Spain Greece Lisbon Turkey

Atens

Valletta

RR R Pipelines are a long-established, safe and efficient mode of transport for crude oil and petroleum products. They are used R R RRS R both for short-distance transport (e.g. within a refinery or depot, S R R S or between neighbouring installations) and long distances. R RS An extensive network of cross-country oil pipelines in Europe meets a large proportion of the need for transportation of petroleum products. 48 Statistical Report 2016

FIG.40 CAPACITY AND UTILISATION OF EUROPEAN REFINERIES Source: BP Statistical Review of World Energy 2015

00 100

600 6 it tilisatio rate

it capacit illio toes 62

200 200 200 2010 2011 2012 201 201

RR R S R

Since 2007, the utlisation rate of EU refineries has forces European refiners to adapt to these market forces. continuously dropped from 87% to a lowest of 78% in A utilisation rate of 85% is normally required for efficient 2014. This continued decrease in demand and evolution economic operations. of market demand (increasing diesel/gasoline imbalance) Statistical Report 2016 49

FIG.41 GHG EMISSIONS BY SECTOR IN THE EU IN 2013 Source: European Environmental Agency

WASTE 3%

AGRICULTURE 10%

30% ENERGY INDUSTRIES

INDUSTRIAL PROCESSES* 8%

FUGITIVE EMISSIONS 2% FROM FUELS

OTHER SECTORS 16%

11% MANUFACTURING INDUSTRIES & CONSTRUCTION

TRANSPORT 20%

*NOTE: This sector includes by-product or fugitive emissions of Energy and manufacturing industries account for 41% of GHG greenhouse gases from industrial processes. Emissions from fuel emissions in the EU. Transport, supplied around 90% by oil combustion in industry are reported under Energy. refined products, generates 20% of EU GHG emissions. 50 Statistical Report 2016

FIG.42 CO2 EMISSIONS TREND BY SECTOR Source: European Environment Agency

(1990=100%) 10

120

110

100 it issios o 10 leel

0 10 12 1 16 1 2000 2002 200 2006 200 2010 2012 201

R SRS R SRS CO2 emissions per sector have generally SR all been declining since 2007. Industry RSR RS (processes and manufacturing) CO2 SSS emissions decreased sharply over R S SR RSSS the period 2007-2012 and are now RR S between 30% and 38% below the 1990 levels. CO emissions from transport 2 have also been steadily decreasing s in c e 20 07. Statistical Report 2016 51

FIG.43 DECLINING EU SHARE

IN GLOBAL CO2 EMISSIONS Source: IEA, WEO 2015

27% 25% 5% 4% 10.5% 16% RUSSIA 5.5% 11%

EUROPEAN UNION 5% 6.5% CHINA USA 14% MIDDLE 6% 5% 3.5% EAST INDIA AFRICA 3.5% 4%

LATIN AMERICA eissios o orl total 2 23.5%25% it

REST OF THE WORLD 201 200

In 2013, the EU accounted for 10.5% of global CO2 emissions and is expected to account for only 5.5% by 2040. 52 Statistical Report 2016

FIG.44 CO2 EMISSIONS PER CAPITA/REGIONS Source: IEA, WEO 2015

16 10 201 1

eissios per capita 2 2

it 0 o rica sia ia o ile ropea orl ericas sia rope rope a ecl icl ericas ast io 2 ceaia rasia ia o o ia

CO2 emissions per capita/regions have globally increased Europe and Eurasia have recorded a decrease in their CO2 during the period 1990 – 2013 by around 11%. During this emissions. period, only OECD Americas, OECD Europe and Non-OECD Statistical Report 2016 53

FIG.45 QUALITY OF REFINERY WATER EFFLUENT: OIL DISCHARGED IN WATER Source: Concawe

0 000 e t o 200 t

0 p r

o s 2000 r e t

0 t o t e r o

p e 2 100 e r r

r a e c p

20 s i e

1000 r t e

1 a a c

s i i

l l i 00 i t t i i 0 000 16 1 1 11 1 1 10 1 1 2000 200 200 2010 201 ear o Sre SR S S SR SR R RR R

Over the years, the EU Refineries have significantly improved absolute amount discharged and the amount expressed the quality of refinery water effluent. The amount of oil relative to the volume of feedstock processed (throughput) discharged in effluents from reporting installations continued and the refining capacity of the installations. to decrease to extremely low levels – both in terms of the 54 Statistical Report 2016

FIG.46 EU REFINERIES’ ENERGY COST AS PERCENTAGE OF TOTAL OPERATING COSTS Source: Concawe

10 it er cost as o total operati

1 2000 2002 200 2006 200 2010 2012

as operati costs relie

The share of energy costs has continuously increased over the leading position in this field, European refiners suffer a strong past 20 years to reach over 60% of the total operating costs in competitive disadvantage resulting from these high energy costs. 2012. Despite strong records in energy efficiency gains and a Statistical Report 2016 55

FIG.47 EU REFINERIES’ ENERGY CONSUMPTION AND EFFICIENCY TRENDS RELATIVE TO 1992 Source: Solomon Associates

120

115

110

Total Energy Consumption 105 per tonne (Net input) Energy Intensity Index (EII) 100 Note: the lower the Ell®, the higher the energy 95 efﬁciency of a reﬁnery.

Unit: Total Energy Consumption per tonne net input and Ell relative to 1992 90

85 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

The index shows that EU refineries have improved their with legislative requirements and to meet shifts in market energy efficiency by about 10% over the past 20 years. demand. The corresponding annual energy saving is roughly This improvement was achieved despite more energy equivalent to the total annual average energy consumption of intensive refinery operations to produce cleaner fuels in line four large EU refineries. 56 Statistical Report 2016

FIG.48 EVOLUTION OF GAS PRICES Source: BP Statistical Review of World Energy 2015

prices ro S ere er 10 S prices ro er telliece rop

it as prices i t

0 16 1 1 1 2000 2001 2002 200 200 200 2006 200 200 200 2010 2011 2012 201 201

Since 2009, US industry gained a significant competitive The 2014 prices in the UK were double the average US gas advantage over EU industry as a result of shale oil revolution. prices. Statistical Report 2016 57

FIG.49 EVOLUTION OF END-USER ELECTRICITY PRICES FOR INDUSTRY Source: IEA

200 ie 100 10 apa S rope 160

120

100

0 200 2006 200 200 200 2010 2011 2012 201 201 201

Over the past few years US industry gained a significant Nevertheless, since mid-2014, EU electricity prices dropped competitive advantage as a result of low electricity prices. as a result of lower crude and gas prices and the gap with While European industry faced an 80% energy price US refiners has been significantly reduced. This situation is increase between 2005 and 2014, the price of electricity for however, according to experts, due to remain overtime and US industry only increased by 20% over the same period. the EU should face again higher electricity prices. 58 Statistical Report 2016

FIG.50 CHEMICAL INDUSTRY RAW MATERIAL USE Source: ICIS/CEFIC

100

0 200 2006 200 200 200 2010 2011 2012 201 201 201 1

The EU refining sector is closely integrated with the feedstock relies on refined products, such as naphtha and petrochemical sector. A large part of the petrochemical petroleum gases. Statistical Report 2016 59

FIG.51 SKILL AND KNOWLEDGE INTENSITIES (% OF TOTAL EMPLOYMENT) Source: European Competitiveness Report 2013

80%

60%

40%

20%

0% e ater estry Food nitur W Paper extiles oleum oducts oducts oducts T Printing obacco Clothing T Fur etail trade Education Chemicals Beverages Information e & for Basic metals Construction Administration Other services Motor vehicles Electricity & gas onic and optical ned petr Pharmaceuticals

fi Rubber & plastics Mining & quarrying Leather & footwear Repair of machinery Electrical equipment Real estate activities Other manufacturing Agricultur Arts & entertaiinment ood & wood pr , electr Wholesale & r ransportation & storage W c and technical activities T

Fabricated metal pr Other transport equipment Machinery & equipment n.e.c. Non-metallic mineral pr Financial & insurance activities Human health and social work Accomodation & food services Coke and re Computer Administrative & support services Personal, scientiﬁ

HIGH SKILL According to the European Commission’s of the largest percentages of highly skilled Competitiveness Report for 2013, the workers of all manufacturing industries, just MEDIUM SKILL European refining industry employs one after the pharmaceutical industry. LOW SKILL 60 Statistical Report 2016

FIG.52 RE-INDUSTRIALISATION OF EUROPE - 20% OF GDP COMING FROM THE INDUSTRY VS CURRENT SITUATION Source: The European Competitiveness Report 2014; ERT

20% it ross ale ae aactri

2000 16.8% -3.2%

201 13.7% -6.3%

% ap to taret 20 o

Despite ambitious EU policy goals to foster re-industrialisation decrease in 2014 in Europe to as low as 13.7%, compared to and increase the share of manufacturing in the EU’s GDP, the 2020 target set by the European Commission. the Gross Value Added by manufacturing faces a continuous Statistical Report 2016 61

FIG.53 EU REFINING INDUSTRY # 1 PROCESS INNOVATION AND AMONG MOST INNOVATIVE INDUSTRIES FOR PRODUCTS Source: European Competitiveness Report 2013

40% 35% 30% 25% 20% 15% 10% 5% 0% e ood nitur Paper W extiles oducts oducts T Leather obacco oducts Clothing T Fur ater suply etail trade c activities Chemicals Beverages

Computers W Basic metals Electrical eq. Construction Manufacturing Motor vehicles Food and drink Market services Pharmaceuticals oleum pr Financial activities Electricity and gas Mining & quarrying Other transport eq. Rubber and plastics Real estate activities Other manufacturing ransport and storage T Printing and publishing Accomodation and food Machinery and eq. n.e.c. Wholesale and r Fabricated metal pr Non-metallic mineral pr Information and communication ofessional and scientiﬁ Coke and petr Pr Repair and installation of machinery Administrative and support activities

PRODUCT INNOVATION According to the data presented by the European Commission in its PROCESS INNOVATION annual Competitiveness Report, the EU Refining industry was the leading industrial sector in process innovation and among the top 4 COKE AND PETROLEUM PRODUCTS for product innovation. PROCESS INNOVATION

Statistical Report 2016 63

FIG.54 BIOFUELS BLENDING TARGETS BY COUNTRY Source: National Legislation (NREAP), EEA, ePure, FuelsEurope

it ercetae 2 Ethanol Biodiesel Overall 22 aate aate aate 20 stria 17 eli laria 6 1 roatia 6 prs 2 ec Replic 1 6 10 ear 7 stoia 6 ila 10 race 1 era 0 reece S S S S S ar S R S R 1 R RS R R rela 6 R tal atia itaia eor 1 The European Commission is not planning to alta 6 establish EU-wide targets for renewable energy eterlas nor for the GHG intensity of fuels used in the ola 1 transport after 2020. Some Member States ortal 2 however enforce blending mandates for biofuels. Roaia 6 These mandates often form part of national Sloaia 6 6 programmes to support agriculture, energy Sloeia security or aim to contribute to carbon dioxide Spai reduction. See ite io Note: E = Energy V = Volume MS = Member State 64 Statistical Report 2016

FIG.55 VEHICLE MARKET PENETRATION IN THE EU Source: Emisia/ACEA

3% LPG 1% COMPRESSED NATURAL GAS

1% HYBRID GASOLINE

54% GASOLINE 41% DIESEL

0.1% E85

Gasoline and diesel vehicles dominate the market in the EU. Despite tax incentives introduced by some EU Member States, the uptake of alternative vehicle technologies is still limited. Statistical Report 2016 65

FIG.56 NUMBER OF PETROL STATIONS IN EUROPE END OF 2015 Source: National Oil Industry Associations, FPS Economy, DG Energy

Number Number of petrol of petrol COUNTRY stations COUNTRY stations stria 2 641 tal 21 000 eli 3 386 * atia 625 laria 2 457 itaia 830 roatia eor 236 prs 280 ** alta ec Replic 3 844 eterlas 4 198 ear 2 007 * ola 6 600 stoia 440 ** ortal 2 735 ila 1 889 Roaia 2 080 race 11 269 Sloaia 929 era 14 531 Sloeia 547

it er o petrol statios reece 6 127 Spai 10 947 ar 1 901 See 2 970 rela 1 795 ite io 8 494 EU TOTAL 109 041 ora 1 677 Siterla 3 461 re 12 904 TOTAL NO + CH + TR 18 872 TOTAL 127 913

ers or 201 There were over 125,000 petrol stations in the EU, Norway, Switzerland and Turkey operating in 2015, fuelling some 230 ers or 201 million cars and over 30 million trucks on Europe’s roads. 66 Statistical Report 2016 About FuelsEurope

FuelsEurope is a division of the European Petroleum Refiners FuelsEurope aims to inform and provide expert advice to the EU Association, an AISBL operating in Belgium. This Association, institutions and other stakeholders about European Petroleum whose members are all 41 companies that operate petroleum Refining and Distribution and its products in order to: refineries in the European Economic Area in 2016, is comprised of FuelsEurope and Concawe divisions, each having separate n Contribute in a constructive way to the development of and distinct roles and expertise but administratively consolidated technically feasible and cost effective EU policies and for efficiency and cost effectiveness. legislation.

Members account for almost 100% of EU petroleum refining n Promote an understanding amongst the EU institutions and capacity and more than 75% of EU motor fuel retail sales. citizens of the contribution of European Petroleum Refining and Distribution and its value chain to European economic, technological and social progress. Statistical Report 2016 67 FuelsEurope Members FuelsEurope Boulevard du Souverain, 165 I B-1160 Brussels I Belgium Phone: +32 (0)2 566 9100 I Fax: +32 (0)2 566 9111