Statistical Review2013

Statistical Review 2013

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w.ukpia.com

2

About UKPIA

UKPIA Statistical Review 2013

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:

Introduction and Overview

Statistical Review 2013 3

Overview

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

Contents

Section Overview Page No

Introduction andOverview Introduction and overview of UK refining. 4

1 EconomicContribution

The refining and marketing sector is a major contributor to the UK’s economy.

12

2 Refineries There are seven operational crude oil refineries inthe UK, which supply the equivalent of 85% of theUK’s oil product demand.

16

3 Road Transport Fuels

Petrol and diesel supply the vast majority of roadtransport energy requirements.

22

4 Biofuels The introduction of biofuels is the biggest changeto road fuels in decades.

25

Centrefold Oil – the driving force behind modern life.

5 Other Products A wide variety of fuels are produced,and the jet fuel market is expanding.

28

6 Petrol Prices Pre-tax petrol prices in the UK are consistentlyamongst the lowest in Europe.

30

7 Diesel Prices Pre-tax diesel prices in the UK are consistentlyamongst the lowest in Europe.

32

8 Filling Station Stats and Crime Data

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

34

9 Air Quality UK air quality is improving; in part this is due to higher quality fuels and improved vehicle technology.

38

10 Greenhouse Gases

Emissions of carbon dioxide from road transportpre km driven have fallen and the oil industry expects them to continue to fall.

42

11 Process Safety The ‘Process Safety Performance Indicators for theRefining and Petrochemical Industries’ is one of the key objectives of UKPIA’s commitment to process safety.

44

12 Occupational Health and Safety

The refining and marketing sector is oneof the safest industries in the UK.

47

Introduction and Overview

4

Introduction from the Energy Minister

“I welcome the publication of UKPIA’s 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 industry’s 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 FallonEnergy Minister June 2013

Introduction and Overview

Statistical Review 2013 5

Introduction from the President

I am delighted to be writing the President’s 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 UK’s 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, UKPIA’s 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

background in the EU and the UK that adds enormous costs.

The recently published independent report from IHS Purvin & Gertz, sponsored by UKPIA to inform DECC’s 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 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 report’s 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 UK’s import dependency in respect of these products is already at a high risk level based on the International Energy Agency’s ‘MOSES’ methodology.

I also welcome the Energy Minister’s introduction to this year’s Review. His department is closely engaged in the major issues affecting refining and indeed the downstream industry as a whole and the impact upon security of energy supply and resilience. Good progress has been made with reviewing the UK’s oil stockholding system; we welcome the consultation on proposed options and support the concept of an independent oil

stocking agency with compulsory membership for obligated companies.

UKPIA and the industry remain, as ever, willing to work closely with government to help find the best solutions to our future energy challenges. We very much welcome the detailed and valuable report from IHS Purvin & Gertz to help to inform DECC’s 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.

Finally, I should like to record our thanks for everyone’s continuing input into all the valuable work of UKPIA’s committees and the work of UKPIA generally.

Gary Haywood June 2013

Introduction and Overview

6

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 thegrowing 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

Refinery operations can be brokendown 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 and standards

DistillationThe starting point for all refineryoperations 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 380°C. 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

as propane and butane to heavier, higher boiling point diesel and gas oil. They are then sent on to other refinery 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.

CrudeDistillation

UnitCrudeoil

SulphurRecovery

Fuel Gasfor refineryboilers &furnaces

LPG

Unifiner

Merox

VacuumDistillation

Unit

Isomer

Reformer

Fluid CatalyticCracking Unit

TreatingUnits

MeroxIsomerisation

Unit

AlkylationUnitGas

Liq Petroleum GasPetrol componentsKero componentsDiesel componentsFuel oil components

ImportButane

Sulphur

Hydrotreater

Petrol

Kerosene

Derv/Heating oil

Fuel oils

VisbreakerUnit

Introduction and Overview

Statistical Review 2013 7

Using the same approach as beforethe VDU separates into differentcomponents from gas oil to a heavyliquid residue.

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.

Conversion, Reforming, Desulphurisation andBlending of DifferentStreamsDistillation does not produce enoughof the lighter, more valuable productssuch as petrol that the market wants.Therefore conversion units eg fluidisedcatalytic cracking (FCC) are used toprocess some of the streams from thevacuum 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 usedto remove sulphur from the products.This enables the products to meettoday’s 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 ProductsLPG (liquified petroleum gas) is takendirectly from the crude distillation unitand the FCC unit.

Petrol streams from the distillationprocess are cleaned in the unifiner.This unit strips out excess sulphurand nitrogen compounds as hydrogensulphide and ammonia.

The streams are then sent on to thecatalytic reformer and isomer units forprocessing to raise the octane numberof the petrol by modifying its molecularstructure. The reformer produces a large amount of hydrogen as aby-product, and this is recycled for use in desulphurisation (hydrotreater) units.

Finally the petrol streams from thereformer, fluidised catalytic crackingunit, the isomerisation unit and thealkylation unit are blended to meet fuelspecifications and current regulations.

Jet fuel/kerosene streams fromdistillation 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 areprocessed in the hydrotreater, whichremoves sulphur and other unwantedcompounds using hydrogen and acatalyst. The hydrotreater (desulphuriser) is supplied with recycled hydrogen from other process 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 theVDU are processed in the FCC unitwhilst 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 into more valuable lighter products. The LPG and petrol components are then cleaned in a merox unit and some of the LPG is converted in an isomerisation or alkylation unit into high octane petrol blending components. The FCC’s products areblended into petrol, LPG, diesel/gas oil and fuel oil product streams.

In the visbreaker, the heavy fractionsare held at high temperature until theybecome less viscous. This stream isthen blended into other fuel oil productstreams.

The fuel oil components from thedifferent units are then blended to givefuel oil meeting current regulations and specifications.

Desulphurisation and Waste TreatmentThe sulphur recovery unit takes wastehydrogen 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 treatedaccording to the current regulations.

Introduction and Overview

8

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 improvementscontinue to be made to reduce emissions.

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

Distribution of ProductsAround 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 UK’s 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.

Petroineos Grangemouth

Phillips66 Humber

Total Lindsey Essar Stanlow

ExxonMobil Fawley

Murco Milford Haven

Valero Pembroke

Introduction and Overview

Statistical Review 2013 9

Product DistributionThe 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 refinerieswith distribution terminals serving major demand centres. The north tends to be more dependent on road transport withlarge road terminals at Stanlow and on the Humber. Scotland is dependent on supplies from Grangemouth and NorthernIreland on imports delivered to the Belfast port.

Privately owned oil pipelines in England and WalesU.K.O.P. Shell BP Valero Total

ESSO PIPELINE SYSTEM

MAINLINE PIPELINE SYSTEMEsso Valero Total Shell

WALTON GATWICK PIPELINEBP Shell Valero

WEST LONDON PIPELINEBP Shell Valero Total

FINA-LINETotal

PEMBROKE AND MILFORD HAVEN

PURFLEETGATWICK

L.O.R.

STANLOW

NOTTINGHAM

KINGSBURY

BIRMINGHAM

BUNCEFIELD CORYTON/THAMES

AVONMOUTHHEATHROW

FAWLEY

WEST LONDON

MANCHESTER

NORTHAMPTON

INGRESS LOCATIONS: KILLINGHOLME (Total, Phillips 66, BP)

BACKFORD(Shell)

AVONMOUTH

HAMBLE (BP, Esso)

ISLE OF GRAIN (BP, BA)

THAMES HAVEN(BP, Shell, O.I.K.O.S.) WALTON

AVONMOUTH

HAMBLE

RAWCLIFFE

BLACKMOOR

BRAMHALLBACKFORD

HETHERSETT

CLAYDON

ISLE OF GRAIN

SANDY

STANSTED

PURTONTHAMES

HAVEN

KILLINGHOLME

MISTERTON

SAFFRONWALDEN

ALDERMASTON

HALLEN

Government oil pipelines in England and Wales

Introduction and Overview

10

Key Indicators for 2011 and 2012

2011%

CHANGE 10/11

TREND 2011 COMMENT

Economic indicators in 2011

Contribution to balance of payments £4.3bn +62% j 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.

Import volume of petroleum products 27.4mte -1% m

Export volume of petroleum products 36.1mte +6% j

2012%

CHANGE 11/12

TREND 2012 COMMENT

Duty and VAT in 2012

Duty from road fuels £26.6bn -0.7% mThe 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.

Average duty rate, ppl £58.0bn -0.3% m

Average VAT rate, ppl £23.2bn +0.8% j

Oil Product Demand in 2012

Product demand growth -3.1% -0.8% mOverall 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.

Total demand 67.3mte -3.1% m

Petrol* 13.2mte -5.0% m

Diesel* 26.6mte +2.7% j

Fuel oil 1.7mte -16.7% m

Jet Fuel 11.1mte -2.4% m

Burning oil 3.3mte +0.4% j

Refining Industry

Total throughput 68.9mte -8.2% mTotal throughput and utilisation rate fell again despite previous year’s marginal improvement. North Western European refining margins improved relative to recent years’ record lows.Utilisation Rate 78.9% -3.0% m

NW Europe Cracking refining margin per bbl $4.28 N/A

*Biofuels in Petrol and Diesel not included.

Retail Indicators

Petrol pump price (avg) 136.1p +1.8% jAlthough the number of UK’s 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.

Diesel pump price (avg) 142.5p +2.5% j

Number of retail outlets (year-end) 8608 -1.1% m

Number of supermarket sites 1306 +3.1% j

Av. throughput of supermarket filling stations 11m litr -1.5% m

Average throughput of filling station 4,212 klitr -1.2% m

Demand for road fuels (billion litres) 43.8bl -0.6% m

Air Quality (2010 data)*

Refinery CO2 emissions 16.3mte -0.6 mMost 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.

Refinery SO2 emissions 56kte -5.1 m

Refinery NOX emissions 22.2kte -6.6 m

Road transport PM10 emissions 25.3kte -3.4 m

Road transport NOX emissions 378kte +4.7 j

Road transport CO2 emissions (mtCO2) 111mt 0.0%

Road transport Methane emissions 3.4kte -20.9 m

*2010 data only available at time of publication.

Introduction and Overview

11

1. Economic C

ontribution and Refinery Econom

ics

12

1. Economic Contribution and Refinery Economics

The UK oil and downstream refining industry is one of the largest in Europe, comprising of 7

operating refineries, 50 terminals and extensive private and government pipelines carrying over 30 million tonnes of fuel each year. The sector has undergone a number of changes over the years. During the 70s and 80s refiners moved from atmospheric distillation towards the production of gasoline and distillate to take advantage of the changing economic and legislative landscape. And more recently, refiners have had to increasingly adapt and focus on reducing emissions due to increased environmental legislation and tighter fuel specifications, and changing consumer needs with the growth of diesel demand driven partly by fiscal policy.

Despite the strong economic growth seen in the late 90s and early 00s, refining margins continued to fall in both the UK and North West Europe as a whole. Increased environmental and energy policy reforms and taxes squeezed the sector further, with rates of

return remaining on average, 8% in the period from 1997 to 2011 (graph 1.4). The 2008 credit crisis added to the industry’s continued pressures, from volatile crude prices to increased motor fuel taxation and rise in VAT. Reported margins have shown some signs of recovery, moving from to $0.12 per barrel in 2011 to $4 per barrel in 2012 – although hydrocracking margins remained negative in 2012 - whilst crude utilisation rate fell below 80%, as shown in graph 2.6.

The oil refining and marketing industry plays a very important role in the UK’s economy, supporting the employment over 88,000 people at refineries, head offices, forecourts and as contractors, and supplying over 33% of the primary energy used in the UK from a secure supply base. Over 100 million litres of petrol and diesel are sold in the UK each day to an estimated 4 million customers. Today, our industry collects around £37 billion in fuel duty and VAT each year, which contributes around 6% of the Exchequer’s total receipts.

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

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

Con

tribu

tion

(£m

)

1.1 Contribution to Balance of Payments

l The graph illustrates the value of imports and exports of petroleum products

l Oil refining has historically been a major contributor to the UK’s balance of payments

l 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

l 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)

l Exported oil products, on the other hand, are

heavily dependent on international markets. As a result, exports tend to have a more unpredictable pattern

l Oil products will remain central to the nation’s energy needs for decades to come, alongside a developing role for alternative fuels and energy sources

Contribution to Balance of Payments from Imports and Exports of Petroleum Products

(excluding crude)

Source: DECC

1. Economic C

ontribution and Refinery Econom

ics

Statistical Review 2013 13

-6%

-4%

-2%

0%

2%

4%

6%

2000 2002 2004 2006 2008 2010 2012 p

Product Demand (% Growth) GDP (% Growth)0

5

10

15

20

25

30

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

Dut

y (£

bn)

0

20

40

60

80

100

120

1995 1998 2001 2004 2007 2010

Sale

s (£

bn)

1.2 Annual Oil Trade 1.3 Duty from Road Fuels

1.5 Gross Sales

l Oil product demand growth is a key indicator to an economy’s health, and reflects loosely both cyclical and growth trends

l 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

l 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

l This combined figure is around 6.5% of total public sector current receipts and almost equivalent to the country’s total spending on defence

l In 2011, gross sales by UKPIA member companies in the UK were £101.3 billion, including duty

l This is an improvement compared to real numbers from the previous year, partly as a result of rising crude prices, and smaller impairment charges

Source: DECC/ONS

Source: HM Treasury/HMRC

Source: UKPIA

GDP Growth vs. Oil Product Demand Growth Duty from Road Fuels

Gross Sales

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

Duty(£bn) 22.10 23.5 23.6 24.6 27.3 26.8 26.6 -0.7%

0

5

10

15

20

25

30

UKPIA Manufacturing Services Upstream OilProduction

RO

CE

(%)

1.4 Average Return on Capital Employed

l The average return on capital employed for period between 1997-2011 was only 7.9% for the downstream oil industry compared to 15% average of the other three comparable industries

l Over the same time period, manufacturing industries’ ROCE was 9.8% on average, and that of service industries was 15.7%

l Service industries include communications, hotels, catering, distribution, transport and storage.

Source: UKPIA/Office for National Statistics

1997-2011 Average Return on Capital Employed

14

1. Economic C

ontribution and Refinery Econom

ics

-

5,000

10,000

15,000

20,000

25,000

1996 1999 2002 2005 2008 2011

Empl

oyee

s

60

70

80

90

1995 1997 1999 2001 2003 2005 2007 2009 2011

% s

hare

of i

nlan

d co

nsum

ptio

n

1.7 UKPIA Refinery Share of Inland Consumption

1.6 Refining and Marketing Employment

l 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

l 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)

l 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

l This provided vital energy resilience and security of supply to the nation along with the provision of high quality fuels at competitive prices

Source: UKPIA

Source: UKPIA

Refining and Marketing Employment UKPIA Refinery Share of Inland Consumption

2001 2003 2005 2007 2009 2010 2011 Change y/y%

Consumption 88.3 90.0 91.2 89.7 88.9 85.90 87.60 2.0%

0369

12151821242730

1990 1994 1998 2002 2006 2010 2014

Mar

gin

$/bb

l

North-West Europe US Mid-WestUS North-West MediterraneanAustralia

1.8 Regional Refining Margins

l Refining is a highly cyclical business with poor margins occurring in 1995, 1999, 2002 and most recently, 2009/10

l European and Asian refinery margins have been significantly lower than those achieved by refineries on the US Gulf Coast in recent years

l The BP Global Indicator Margin uses generic refinery configurations for a number of products to calculate the average regional refining margin

Regional Refining Margins

1990 1995 2000 2005 2010 2011 2012 Change y/y%

BP RMM 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 UpdateNB: RMM – Refining Marker Margin Basis. The aggregate BP RMM is based on BP’s 2013 portfolio.

Statistical Review 2013 15

1. Economic C

ontribution and Refinery Econom

ics

-3-2-1012345

2007 2009 2011

Mar

gin

$/bb

l

Cracking Refining Margins HSkimming Refining Margins

30

35

40

45

50

55

60

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

Penc

e pe

r litr

e

Petrol Diesel Crude Oil

1.9 NWE Refining Margins

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

l 2012 data indicate a trend towards recovery with cracking margins improving from last year’s $0.12 per barrel to $4.28 per barrel

l Although hydro-skimming margins continue to be negative - around $-0.3 per barrel – they have improved significantly relative to the previous year’s negative margin of $-2.2 per barrel

l 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

l Wholesale ex-refinery product prices tracked crude closely throughout 2012

l 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

l 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

l The UK and EU are net importers of diesel, a product for which there is strong global demand

Source: Wood Mackenzie Source: Wood Mackenzie

NWE Refining Margins

Crude and Ex-Refinery Prices 2012

1.10 Crude and Ex-Refinery Prices

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

2. Refineries

2. Refineries

There are seven major crude oil refineries operating in the UK, situated around the coast for ease of

crude tanker access. Onwards distribution is achieved via an extensive pipeline system plus road, rail and sea transport.

The UK’s crude feedstock is primarily low sulphur crude from the North Sea, although in recent years there has been an increasing diversification trend. Imported crude accounted for 46% of total processing in 2011, with UK’s dependency on imports set to rise as domestic production declines - almost every year since 1999.1 Europe is still the largest region from which the UK imports crude oil, with Norway continuing to be the single largest source, whilst Africa accounts for approximately 10.5%.

The current economic and legislative climate continues to prove difficult for all European refiners, including those in the UK. The country’s utilisation rate in 2011 continued to decline, dropping below 79% - a 3% drop from previous year. However, industry investments have continued in the UK in spite of a challenging economic backdrop, with Total’s Lindsey Refinery having undertaken one of the largest investments of 2010/11 for a new diesel hydrotreater.

The current economic and financial downturn has also had direct impact on global demand for oil products. Demand in the UK continues to be subdued as a result, combined with the drive to reduce emissions in the transport sector and improved vehicle efficiency.

1 PFC Energy report –Downstream monitoring service: UK (December 2011)

Petroineos Grangemouth

Phillips66 Humber

Total Lindsey Essar Stanlow

ExxonMobil Fawley

Murco Milford Haven

Valero Pembroke

0

5

10

15

20

1971 1977 1983 1989 1995 2001 2007 2013Num

ber o

f maj

or re

finer

ies

2.1 UK Refineries 2.2 Number of Refineries

l 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

l The refineries are situated around the coast and most are connected to pipelines for product distribution

l The Petroplus Coryton refinery closed in June 2012

l The number of major oil refineries in the UK has fallen from a high of 19 in 1975 to 7 currently in operation

l There are two further smaller speciality refineries in the UK producing bitumen and other products

l In 2011, two of the eight refineries then operating were sold; Chevron’s Pembroke refinery to Valero and Shell’s Stanlow refinery to Essar. Milford Haven refinery remains on the market

Source: UKPIA

Source: UKPIA

16

Number of Operating UKPIA Refineries

2. Refineries

2 Financial Times April 27th 2011 By Sheila McNulty

500

1,000

1,500

2,000

2,500

3,000

Germany Italy UK France Spain Nethlnds Belg ium

Thou

sand

bar

rels

per

day

2000 2011

012345678

1982 1988 1994 2000 2006 2012Fuel

use

d as

% o

f thr

ough

put

0

20

40

60

80

100

120

1990 1994 1998 2002 2006 2010

Thro

ughp

ut (

Mte

)

70%

75%

80%

85%

90%

95%

100%

-

20,000

40,000

60,000

80,000

100,000

2003 2004 2005 2006 2007 2008 2009 2010 2011Crude processed utilisation rate

2.3 European Capacity

2.5 Refinery Energy Efficiency

2.4 Refinery Throughput

2.6 Crude Capacity and Ultisation

l 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)

l 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

l 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)

l Refineries use the equivalent of between 5 and 6% of throughput as fuel, to provide energy to refine crude oil into products for consumers

l 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

l 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

l UK refining throughput was around 69 million tonnes in 2012 – an 8% drop compared to the previous year

l Throughput depends on product demand, capacity and other factors such as timing of maintenance shutdowns

l The capacity utilisation rate is the value of total production capacity which is actually being utilised over a specific period of time

l Crude oil capacity utilization rate is equal to crude oil processed, divided by crude oil production capacity

l UK refineries in 2011 had a combined utilisation rate of a little under 79% - a 3% decline compared to the previous year

l Although the industry undergoes regular cyclical declines, the UK utilisation rate has consistently declined in the last 8 years, barring 2009

Source: BP Statistical Review of World Energy 2012

Source: DECC (DUKES)

Source: DECC (DUKES)

Source: DECC (DUKES)

Statistical Review 2013 17

European Capacity 2000/2011

Refinery Energy Efficiency

Refinery Throughput

Crude Capacity and Ultisation

2. Refineries

UK

Africa

Norway

Middle EastRussia

Others

Venezuala

Domestic deliveries

Exports

2.7 Sources of Crude Oil 2.8 Destination of Oil Products

l Around 74% of UK refinery crude throughput is from the North Sea; around 52% from Norway and 22% from the UKCS

l Currently, around 8% of crude oil processed at UK refineries arrives from Russia and the Middle East, an increase on last year’s 5.7%

l Imports from Africa have also increased from 8.8% to 10.5%

l The majority of oil products processed at UK refineries are consumed in the UK market – approximately 62%

l 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

l 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

l There is, however, increasing uncertainty over the future of the UK’s 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 UK’s structural surplus is high

Source: DECC (DUKES)

Source: DECC (DUKES)

18

1,000 tons 2005 2007 2009 2010 2011 Change y/y%Ind. Prod 84,721 76,575 68,199 62,962 51,972 -17%

Exports 58,885 57,357 60,041 54,587 57,586 5%Imports 54,099 50,999 45,202 42,196 33,745 -20%

Net -28,263 -31,781 -37,045 -33,821 -39,358 -8.7

2.9 UK Net Product Flows

l These are Net product flows; they represent the overall import and export balance of the various grades shown

l UK refineries, in common with those in the EU, were configured to produce petrol and therefore have a mismatch between domestic production and demand

l Fiscal policy in the EU has driven up demand for diesel and demand for air transport has dramatically increased aviation fuel use

l Consequently, the UK has a deficit of aviation fuel and diesel, whilst exporting surplus petrol, fuel oil and gas oil

l Imports are key for the jet fuel market as demand is over 11.5 mmt with UK refiners supplying only half the market demand

UK Net Product Flows: 2011

Source: DECC (DUKES) Production for year 2012

2. Refineries

Statistical Review 2013 19

-120-100-80-60-40-20

020406080

100120

2001 2003 2005 2007 2009 2011

Qua

ntity

(m te

)

Imports Exports Balance

0

5

10

15

20

25

30

Petrol Gas Oil/Diesel

Jet Fuel Fuel Oil PetroleumGases

BurningOil

Others

Dem

and

(Mte

)

0

5

10

15

20

25

30

Petrol Gas Oil/Diesel

Jet Fuel Fuel Oil Petr.Gases

BurningOil

Others

Prod

uctio

n (M

te)

0

20

40

60

80

100

1976 1980 1984 1988 1992 1996 2000 2004 2008 2012p

UK

prod

uctio

n M

te

Fuel Oil Gas Oil/ Diesel Jet Petrol

2.10 Annual Oil Trade

2.12 Product Demand

2.11 Products Produced

2.13 Changes in Refinery Production

l The chart illustrates UK’s annual trade; imports and exports of crude oil and petroleum products

l 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

l 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

l The majority of oil product demand comes from the transport sector

l UK refineries do not produce enough jet fuel or diesel, consequently these are increasingly supplemented by imports to meet demand

l UK refineries are configured to meet historically higher demand for petrol and fuel oil

l 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

l Changing refinery production to meet demand will require major investment

l See UKPIA’s paper “Fuelling the UK’s 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

l The major change in refinery production over the last forty years has been a significant reduction in the quantity of fuel oil produced

l The increase in gas oil/diesel and petrol seen in the 80s and 90s has since levelled off

l Over the same period, some of the surplus fuel oil has been converted into petrol and gas oil/diesel or exported

Source: DECC (DUKES)

Source: DECC (DUKES - provisional data)

Source: DECC (DUKES - provisional data)

Source: DECC (DUKES))

Annual Oil Trade 1999 to 2011Products Produced 2012

Product Demand 2012

2. Refineries

20

0

20

40

60

80

100

1976 1980 1984 1988 1992 1996 2000 2004 2008 2012p

UK

sale

s M

te

Fuel Oil Gas Oil/Diesel Jet Petrol

0

60

120

180

240

1975 1979 1983 1987 1991 1995 1999 2003 2007 2011

Emis

sion

s (K

te)

0

5

10

15

20

25

30

1991 1996 2001 2006 2011

Emis

sion

s (M

te)

0

10

20

30

40

50

1975 1979 1983 1987 1991 1995 1999 2003 2007 2011

Emis

sion

s (K

te)

2.14 Changes in Product Demand

2.16 Refinery SO2 Emissions

2.15 Refinery CO2 Emissions

2.17 Refinery NOx Emissions

l 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

l Since 1990 the demand for petrol has almost halved, whilst jet fuel has seen demand rise by over 70%

l However, overall demand clearly shows a 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

l Refineries release SO2 when sulphur, naturally present in crude oil, is burnt

l Refinery SO2 emissions have fallen by 72% since 1970, to around 60 thousand tonnes in 2011

l This is due to investment to increase sulphur recovery at refineries and the use of low sulphur North Sea crude oil

l Although there has been an increase in recent years due to the use of higher sulphur crude oils, further reductions are planned

l Refineries emit around 30% of the UK’s CO2 emissions and are included in the EU Emissions Trading Scheme

l 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

l CO2 emissions increased slightly in 2011by around 7%

l NOx is formed as a result of the combustion of fossil fuels, and hence is produced at refineries

l Refinery NOx emissions have fallen by well over a third since 1990 to around 22 thousand tonnes; or 47% compared to 1975

l This is due to the installation of abatement technology at refineries

Source: DECC (DUKES)

Source: DEFRA

Source: DECC (GHG Emissions)

Source: DEFRA

Refinery CO2 Emissions

Refinery NOx EmissionsRefinery SO2 Emissions

2. Refineries

Statistical Review 2013 21

0

50

100

150

200

250

1982 1986 1990 1994 1998 2002 2006 2010

Emis

sion

s (k

tonn

es)

Refining/Storage VOC Emissions Distribution of oil products VOC emissions

2.18 Downstream VOC Emissions

l Volatile organic compounds are produced from the evaporation of oil products

l Since 1990, refinery and storage emissions have fallen by over 70%, to under 21 thousand tonnes due to leak detection and repair programmes

l 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

l 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

Downstream VOC Emissions

Source: DEFRA

3. Road Transport Fuels

22

3. Road Transport Fuels

Total product demand last year was down for a fourth consecutive year, indicating a downward trend. This

is linked in part to the downturn, which has hit nearly all categories of oil product consumption, as well as higher oil prices and improved vehicle efficiency.

The road transport sector, prior to the recession, was growing at a steady rate, with increases in diesel use offsetting weaker petrol demand.

The increase in diesel sales is part of a Europe-wide trend, largely fiscally, driven that has been developing for over two decades with the UK coming comparatively late to the dieselisation process; in 2004, petrol sales

where 4 billion litres greater than those of diesel, whilst annual registration of new diesel vehicles was still only one third of the total vehicle fleet. A key reason for this relatively slow uptake had been the lack of any tax advantage for diesel, which is taxed at the same rate as petrol. However, with the advances achieved in diesel engine performance leading to improved fuel efficiency relative to petrol, combined with changes in company car personal tax policy and VED rates, consumers in recent years have increasingly favoured diesel cars. Today, 48% of new registered vehicles in the UK are diesel fuelled, and over 59% of the 44 billion litres of road fuels sold last year was diesel.

300

350

400

450

500

550

600

650

700

1995 2000 2005 2010 2015 2020 2025 2030 2035

Bill

ion

km d

rive

n

historic data low demand central high demand

Petrol

Diesel

0

10

20

30

40

50

60

1976 1980 1984 1988 1992 1996 2000 2004 2008 2012p

Tota

l sal

es b

illion

litre

s

3.1 Demand for Road Travel 3.2 Road Fuel Sales

Source: DECC

Total Road Fuel SalesDemand for Road Travel

l Road travel demand has been on an upward trend for decades and, despite a flattening in growth during the recession, demand is forecast to increase in the future

l However, due to advances in engine efficiency, this trend is not reflected in product demand

l By 2035, central demand is predicted to have grown by over 66% from 1995 levels

Source: DfT (DfT Road Transport Forecast 2011)

l 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

l 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

l Share between petrol and diesel continues to shift in favour of diesel, now accounting for 59% of total fuel sales

l This is the result of an increased proportion of diesel vehicles

3. Road Transport Fuels

Statistical Review 2013 23

0

5

10

15

20

25

30

35

1976 1982 1988 1994 2000 2006 2012p

Tota

l sal

es (

billi

on li

tres)

3.3 Petrol Sales

l Sales of petrol have been falling since reaching a peak of 33 billion litres in 1990 equivalent to 73% market share of transport fuels

l 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

l 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

Petrol Sales

Source: DECC

0

5

10

15

20

25

30

1976 1982 1988 1994 2000 2006 2012p

Tota

l sal

es (b

illion

litre

s)

0

500

1000

1500

2000

1990 1995 2000 2005 2010

Parts

per

milli

on s

ulph

ur (p

pm)

Legal L imi t UK Actual

3.4 Diesel Sales 3.5 Maximum Sulphur in Petrol

l Sales of diesel have been steadily increasing for the last twenty years, today reaching a little under 26 billion litres

l 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

l Diesel sales fell slightly in recent years due to the economic recession and higher diesel prices but returned to record sales in 2012

l 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

l The level of sulphur in road fuels is limited by law

l From January 2009, all UK petrol was “sulphur free”, containing less than 10 parts per million of sulphur

Source: DECC Source: BSI/UKPIA

Diesel Sales

Max. Sulphur in Petrol

3. Road Transport Fuels

24

0

1000

2000

3000

4000

1990 1995 2000 2005 2010Parts

per

milli

on s

ulph

ur (p

pm)

Legal L imi t UK Actual

0

50

100

150

200

250

300

1999 2001 2003 2005 2007 2009 2011

Tota

l sal

es (m

illion

litre

s)

3.6 Maximum Sulphur in Diesel

3.7 Sales of LPG for Transport

l The level of sulphur in diesel is also limited by law

l All diesel in the UK became “sulphur free” by January 2009 (below 10ppm)

l As well as petrol and diesel, liquefied petroleum gas (LPG) is used as a road fuel in the UK

l 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

l 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

Source: BSI/UKPIA Source: HM Revenue and Customs

Max. Sulphur in Diesel Sales of LPG for Transport

4. Biofuels

2325

4. Biofuels

As a member of the European Union, the UK is committed to reducing its carbon emissions as

initially mandated by the 2003 EU Biofuels Directive that set an EU-wide target of 5.75% of the market share of transport fuels by 2010. This was followed by the recently transposed Renewable Energy Directive (RED) that sets out a target of 10% by energy for all forms of transport to be from renewable sources by 2020.

Given that over 25% of the UK’s carbon emissions come from the transport sector, with some 14% from the private car fleet alone, the transition to a low carbon model has been particularly challenging. As a result, an enormous

amount of work has been undertaken by the downstream oil industry to ensure that the Government’s targets are met under the Renewable Transport Fuels Obligation (RTFO) and that fuel quality standards are maintained. Key considerations are the amount of carbon saved by different biofuels, the sustainability of the source material, food crop production and the carbon balance associated with land use change. In December 2011, the RTFO was amended to allow only biofuels to meet the RED carbon and sustainability criteria to count towards the obligation, and, from April 2013, the obligation was extended to include fuel consumed by Non-Road Mobile Machinery (NRMM).

0%

2%

4%

6%

07/08 08/09 09/10 10/11 11/12 12/13 13/14

% v

olum

e bi

ofue

l in ro

ad

fuel

s

080

160240320400480560640720800880

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

Milli

on li

tres

4.1 RTFO Targets 4.2 UK Bioethanol Consumption

Source: HMRC

UK Bioethanol ConsumptionRTFO Targets

l The RTFO was introduced in April 2008, with an original target of 5% biofuel content (by volume) in road fuels by 2010/11

l 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

l Means by which the RED obligation is met are yet to be decided. For this reason future RTFO obligation is still unknown

Source: HMT

l Between January 2005 and March 2010, the Government introduced a 20 pence per litre duty reduction on bioethanol

l 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

l The relatively low sales volumes reflect the current logistical difficulties of adding bioethanol to petrol

l There are various other renewable petrol fuels which obligated companies use to meet their targets, such as methanol

l The buyout price in the RTFO is set at 30ppl

Statistical Review 2013

4. Biofuels

2226

0

200

400

600

800

1000

1200

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

Milli

on li

tres

0%

1%

2%

3%

4%

Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan

% v

olum

e bi

ofue

ls in

road

fue

ls

Bioethanol Biodiesel

2008 2009 2010 2011 2012 2013

4.3 UK Biodiesel Consumption

4.4 UK Progress towards RTFO Targets

l Between July 2002 and March 2010, the Government introduced a 20 ppl duty reduction on biodiesel

l In 2012/13, UK biodiesel consumption fell to around 520 million litres from previous year’s 992 million litres as a result of waste fuels being used to fulfil the RTFO obligation, which double count in the RTFO

l 2012/13 biodiesel levels represented around 2% of total diesel sales by volume

l The buyout price in the RTFO is set at 30ppl

l The UK added 2.6% of biofuels during the first year of the RTFO (2008/09), exceeding the target of 2.5%

l In the 2nd year of the RTFO (2009/10), the UK met the target of 3.25% of biofuels

l 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

l In the 2011/2012 period, biofuel use increased to 3.7% of total road transport

l 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

Source: DECC Source: HMRC

UK Biofuel Consumption UK Progress towards RTFO Targets

0

10

20

30

40

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14

Penc

e pe

r litr

e

Duty Differential Buy Out

4.5 Duty & Buy Out for Biofuels

l A duty differential of 20 pence per litre has been in place for biodiesel since 2002 and for bioethanol since 2005

l In addition, a ‘buy out’ price for the RTFO was introduced at 15 ppl in 2008/09, giving a combined incentive of 35 ppl

l The duty differential was removed in 2010* with the buyout price at 30 ppl

l 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

Duty Differentials and Buy Out for Biofuels

Source: HMT/ RFA

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?

EU Low-Carbon Strategy

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.

...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 UK’s current and future energy needs in a way that is consistent with sustainable environmental policy and to facilitate economic growth.

BP Energy Outlook 2030 = IEA’s Outlook very similar DECC Updated Energy & Emissions Projections 2012 - Central Scenario

UK Final Energy Consumption 2030 (ktoe)

Primary use Fuel

Billion tonnes Billion tonnes

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 UK’s 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.

...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 refining’s 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’ Refined Product Balance: Deficit in % ‘Refinery Closure’ Scenario

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

Net imports

Net exports

Net imports

Net exports

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

Source: IHS Purvin & Gertz 2013

Crude cost and income from products UK refinery operating cost

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 country’s 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 UK’s refining industry is competitively placed against EU and Global competitors.

On the other

The UK’s 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 Forum’s ‘Fitness Checks’ must address past and current legislation’s 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

Statistical Review 2013 2327

Corn EC 3%

Corn Non EC 31%

Oilseed rape 3%

Palm 1%

Soy 2%

Unknown 6%

Used cooking oil 52%

Wheat 2%

Argentina 2% Canada

3% France 2%

Germany 6%

Indonesia 1%

Italy 1%

Netherlands 10%

Spain 4%

United Kingdom 12%

United States 39%

Unknown 20%

4.6 Sources of Biofuels used in the UK

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

l Ethanol is mostly sourced from sugarcane and sugar beet

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

Source: DfT (covering period April 2011 – December 2011)

Sources of Biofuels by Crop Sources of Biofuels by Country

Bitumen Fuel Oil

Jet and Kerosene

Petrol

LPGNaphtha

Diesel and Gas Oil

0

10

20

30

1976 1982 1988 1994 2000 2006 2012

Del

iverie

s (m

illio

n to

nnes

)

5.1 Refining Production 5.2 Fuel Oil Deliveries

l Refineries produce naphtha, LPG, road fuels, kerosene, jet fuel, heating oil, diesel, gas oil, fuel oil, bitumen and other products such as chemical feedstocks

l The current trend of production is away from heating fuels (fuel and gas oils) and towards transport fuels (petrol, diesel and jet fuel)

l 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)

l The market for fuel oil has reduced significantly since 1970 – rising only briefly in 1984 due to the miners’ strike

l The reduction in demand is mainly due to fuel switching to natural gas by electricity generators – the ‘dash for gas’

Source: DECC *excludes refinery use and losses Source: DECC

Refining Production in 2012* Inland Fuel Oil Deliveries

5. Other Products

A wide range of products are produced from crude oil, ranging from transport and domestic/industrial

fuels to chemical feedstocks. Over time, refinery configurations have developed to increase the quantities of high value transport fuels that can be produced. In

contrast, the domestic/industrial markets for other fuels have altered markedly over the last twenty years as sales of fuel oil and gas oil have reduced, being displaced in power generation and industrial applications by natural gas.

02468

10121416

1976 1982 1988 1994 2000 2006 2012Del

iver

ies

(milli

on to

nnes

)

5.3 Gas Oil Deliveries

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

l Gas oil is produced from a similar fraction of crude oil as diesel and so production is limited

l The reduction in demand is mainly due to fuel switching to natural gas

l 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

Inland Gas Oil Deliveries

Source: DECC

5. Other Products

28

Statistical Review 2013

5. Other Products

2329

0.00.51.01.52.02.53.03.54.04.5

1976 1982 1988 1994 2000 2006 2012

Del

iver

ies

(milli

on to

nnes

)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1976 1982 1988 1994 2000 2006 2012Del

iver

ies

(milli

on to

nnes

)

0

3

6

9

12

15

1976 1980 1984 1988 1992 1996 2000 2004 2008 2012

Del

iver

ies

(milli

on to

nnes

)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1976 1982 1988 1994 2000 2006 2012

Del

iver

ies

(milli

on to

nnes

)

5.4 Kerosene Deliveries

5.6 Bitumen Deliveries

5.5 Aviation Fuel Deliveries

5.7 Lube Oil Deliveries

l Kerosene (also called burning oil) is used as fuel for domestic and industrial heating, and sales are typically higher during the winter

l 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)

l New legislation introduced in January 2008 restricted the sulphur levels in kerosene to 0.1%

l Demand for bitumen has declined to just 1.3 million tonnes/pa

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

l Aviation turbine kerosene is used in jet engines

l 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

l Sales of lubes and greases have fallen since 1970 to around 0.36 million tonnes/pa

l Improved engines require fewer oil changes and the use of synthetic lubricating oils has also contributed to this reduction

l The introduction of biodiesel at higher levels could see oil drain intervals reducing and demand for lubes increasing

Source: DECC

Source: DECC

Source: DECC

Source: DECC

Inland Lube Oil DeliveriesInland Bitumen Deliveries

Inland Kerosene Deliveries Inland Aviation Fuel Deliveries

Pre-tax

Duty /VAT

0

20

40

60

80

100

120

140

1992 1996 2000 2004 2008 2012

Penc

e pe

r litr

e

Ex-Refinery Price30%

Retail /Ex-refinery

Price Spread6%

Duty / VAT64%

6.1 Petrol Pump Price 6.2 Average Contribution to Pump Price

l 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

l 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

l Consistent growth is due in part to the general rise in crude oil prices, reflecting increased global demand

l 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

l Duty and VAT are the main components of the pump price of petrol in the UK, making up almost two thirds of the total

l 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

l Duty remained steady at 58p throughout 2012

l The average retail/ex-refinery price spread for 2012 was around 6.7 ppl

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

Source: Wood Mackenzie

UK Petrol Pump Price Breakdown

Average Contribution to Pump Price 2012

6. Petrol Prices

As a result of the UK’s competitive road fuels retail market and efficient distribution facilities, the pre-

tax price of major brand petrol in the UK is consistently amongst the lowest in Europe. However, despite this competition, the price paid by consumers at the pump is one of the highest in Europe, due to the higher levels of duty applied by the Government. The retail/ex-refinery price spread on average has been around 6 pence per litre on petrol for most of the last decade.

It should also be noted that data hides variations between remote rural regions and urban areas, in part due to higher transportations costs. The government is seeking to address this by setting up a pilot scheme to provide a 5 pence per litre fuel rebate for very remote areas. The scheme launched on March 1st 2012 with more than 90 businesses in the Inner & Outer Hebrides, Northern Isles, Islands in the Clyde and Isles of Scilly taking part.

6. Petrol Prices

30

Statistical Review 2013

6. Petrol Prices

2331

0

20

40

60

80

100

120

140

UK Ger Spain France Neth Italy Bel Lux

Penc

e pe

r litr

e

Excl Duty & VAT Duty & VAT

0

50

100

150

200

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

1990

= 1

00

Duty &VAT

Pre Tax

Crude Oil Price

Petrol Price

0

10

20

30

40

50

60

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

Penc

e pe

r litr

e

6.3 European Prices

6.5 Fuel Price and Tax Comparison

6.4 Pre-Tax Petrol and Crude Prices

l 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

l The price paid at the pump by UK consumers was however considerably higher – third highest in Europe - due to the levels of fuel duty

l The pre-tax price of petrol only recently increased relative to 1990 levels, having remained below RPI adjusted 1990 prices until 2005

l Duty and VAT steadily increased relative to 1990 levels throughout the 90s, until they were effectively frozen following protests in September 2000

l They have recently risen again, and continue to show a greater increase over the past 18 years than the pre-tax price. 2010 saw the largest growth since 1999.

l In 2012, duty was effectively frozen, with VAT only increasing the tax curve

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

l The effect of crude prices on the final pump price is lessened by the high levels of fuel duty

l The £/$ exchange has a significant influence on fuel prices

Source: Wood Mackenzie

Source: Wood Mackenzie/UK Statistics Authority

Source: DECC

Fuel Price and Tax Comparison

Pump Prices of Unleaded Petrol 2012Pre-Tax Petrol and Crude Prices

7. Diesel Prices

32

Duty & VAT

020406080

100120140160

1992 1996 2000 2004 2008 2012

Penc

e pe

r litr

e

Excl. Duty & VAT

Retail/ Ex-Refinery Price

Spread 4%

Ex-Refinery Price 37%

Duty/VAT 59%

7.1 Diesel Pump Price 7.2 Average Contribution to Pump Price

l 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 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

l This growing increase is due to rising crude oil prices, reflecting increased global demand

l The increases in duty in December 2006, October 2007, December 2008, April 2009 and 2011 also contributed to the rise in pump prices

l In 2012 duty and VAT made up almost two thirds of the pump price of diesel in the UK

l The retail/ex-refinery price spread was around 7.4 ppl

l From this the oil company and retailer must cover all site, distribution and storage expenses

Source: Wood Mackenzie *The price of petrol in figure 7.1 is in money of the day

Source: Wood Mackenzie

UK Diesel Pump Price BreakdownAverage Contribution to Pump Prices 2012

7. Diesel Prices

The UK road fuels retail market is highly competitive and distribution facilities are efficient; consequently,

the pre-tax price of major brand diesel in the UK is consistently amongst the lowest in Europe. Despite this competition, diesel prices remain among the highest in Europe, but while a much larger share of the price is taken up by tax compared to other European markets, the refining margin remains higher relative to petrol.

The UK, unlike other European markets, doesn’t tax diesel at a lower rate than petrol, this results in diesel prices in the UK being slightly higher compared to 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.

However, as petrol engine efficiency improvements continue to catch up with that of diesel, forecasting the current ‘dieselisation’ trend long-term is difficult. Particularly as the growing drive for a reduction in carbon emissions from transport will increasingly result in tax levels becoming more aligned with vehicle carbon emission levels, and most likely lead to a marginal increase in the attraction of smaller capacity gasoline fuelled vehicles. For these reasons, analysts argue that the growth in diesel’s market share will slowly cease and reach a peak in 2017, followed by a gradual reversal in trend.

Statistical Review 2013

7. Diesel Prices

2333

58

60

62

64

66

68

UK Ger Spain Ireland France Neth Lux Italy Bel

Penc

e pe

r litr

e

Diesel Price

Crude Price

0

10

20

30

40

50

60

70

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

Penc

e pe

r litr

e

020406080

100120140160

UK Neth Italy Fra Ger Bel Lux Spain Ire

Penc

e pe

r litr

e

Excl duty/VAT Duty & VAT

Pre Tax Price

Duty & Vat

0255075

100125150175200225

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

1990

= 1

00

7.3 European Pre-Tax Pump Prices

7.5 Pre-Tax Diesel and Crude Prices

7.4 European Pump Prices

7.6 Fuel Price and Tax Comparison

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

l The low UK pre-tax price is a result of strong competition amongst retailers and an efficient fuel distribution network

l The pre-tax price of diesel is closely related to the price of crude oil

l The £/$ exchange is a key factor in determining fuel prices

l The final pump price of major brand diesel in the UK was the highest compared to major European countries in 2012, reflecting the high level of duty paid on fuel in the UK

l The UK is the only major European country to apply the same duty rate to diesel and petrol

l The pre-tax price of diesel only increased relative to 1990 levels in 2004 and has since picked up pace

l 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

l Duty and VAT steadily increased relative to 1990 levels throughout the ‘90s, until they were effectively frozen following protests in September 2000

l 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

Source: Wood Mackenzie

Source: Wood Mackenzie

Source: Wood Mackenzie

Source: Wood Mackenzie/UK Statistics Authority

Fuel Price and Tax ComparisonPre-Tax Diesel and Crude Prices

Pre-Tax Pump Prices of Diesel 2012

Pump Prices of Diesel 2012

8. Filling Stations Stats and Crim

e Data

34

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

1976 1982 1988 1994 2000 2006 2012

Num

ber o

f site

s

0

5,000

10,000

15,000

20,000

25,000

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

Num

ber o

f site

sSupermarket Oil Companies Dealer / Independent

8.1 Number of Sites 8.2 Ownership of Sites

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

l The number of filling stations is now less than a quarter of the 1970 total

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

l Many filling stations owned and operated by both oil companies and independent retailers have closed due to competition and low profits

l The number of supermarket sites is increasing at a steady rate of 2% p/y

l Independent sites still account for the majority of petrol stations at around 60% of total number but only 31.3% of sales volume

l In the last few years several oil majors have exited the UK retail market

Source: Energy Institute until 2005; Catalist onwards Source: Energy Institute until 2005; Catalist onwards

Total Sites Ownership of Sites

8. Filling Stations Stats and Crime Data

Over the last forty years the number of filling stations in the UK has reduced dramatically, from over 37,500

in 1970 to 8,608 at the end of 2012. In the last ten years, on average more than 450 filling stations closed each year due to strong competition between fuel retailers and the increasing costs of compliance with environmental regulation. This favours large service stations with lower overheads per litre sold. As a result many smaller filling stations have become economically unviable.

The only section of the retail market that is currently growing is large supermarket sites. In 2012, hypermarkets accounted for around 41% of market share by volume, despite only owning 15% of all petrol stations versus the oil companies’ 28% market share by volume with ownership of 25% of all petrol stations.

Statistical Review 2013

8. Filling Stations Stats and Crim

e Data

2335

-

200

400

600

800

1,000

1,200

1,400

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

Num

ber o

f site

s

0

2

4

6

8

10

12

14

1997 2000 2003 2006 2009 2012

Milli

on li

tres

/ yea

r

Independents Supermarkets

Petrol

Diesel

0

10

20

30

40

50

1994 1997 2000 2003 2006 2009 2012

% o

f sal

es

0

50

100

150

200

250

300

350

England Wales Scotland NorthernIreland

Site

s/m

illion

peo

ple

8.3 Supermarket Sites

8.5 Throughput per Site

8.4 Supermarket Share of Retail Sales

8.6 Access to Filling Stations

l At the end of 2012 there were 1,306 supermarket filling stations in the UK

l Over 15% of all filling stations are now owned by supermarkets

l Although numerically in the minority, volume sales are the significant factor and account for 41% of market share

l The average throughput of all filling stations has risen markedly since 1994 to around 4 million litres per year. However, there is a huge disparity between company, independent and supermarket sites

l The average supermarket site throughput is currently around 11 million litres per year whilst independent sites average just over 2 million litres

l As the retail market continues its decline for the 3rd consecutive year, supermarket share of retail sales has continued to grow steadily

l Supermarkets now account for 45% of all petrol sold and 38% of diesel

l The number of filling stations per capita is highest in Northern Ireland with around 296 p/p relative to England with 127 p/p

l For the last four consecutive years, the number of filling stations has consistently reduced in all four regions

l See UKPIA briefing paper – ‘Fuel Supply to Rural Filling Stations’ for more information

Source: Energy Institute until 2005; Catalist onwards

Source: DECC / Energy Institute / Catalist

Source: DECC (ETS)

Source: ONS / Catalist

Access to Filling Stations 2011

Throughput per Site

Supermarket Sites

Supermarket Share of Retail Sales

8. Filling Stations Stats and Crim

e Data

36

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2008 q1 2009 q1 2010 q1 2011 q1 2012 Q1

Major Other

0

1

2008 q1 2009 q1 2010 q1 2011 q1 2012 Q1

Gun Knife Other

8.7 Crime Related Injuries 8.8 Types of Weapon

l Major Injuries are RIDDOR reportable

l Since 2010 q1 there have been many quarters with no injuries reported and only a small proportion of those reported were major

l Reports of incidents involving weapons have been declining for several years

l Reports of guns have declined in each year since 2007

l Reports of knives declined each year from 2007 to 2010 but rose in 2011. In 2012 they resumed their downward trend

l Reports of other weapons were low in 2009 but rose in 2010 and have remained stable in 2011 and 2012

Source: BOSS Source: BOSS

Crime Related Injuries to Service Station StaffIncidents per quarter per 100 service stations

Type of WeaponIncidents per quarter per 100 service stations

Service Station Crime

BOSS (British Oil Security Syndicate Ltd.) is an independent trade organisation and forecourt crime

campaigner dedicated to reducing criminal activity on service stations which cost the industry over £25.7 million in 2012, up from £22.2 million in 2010. Its members are the oil companies BP, Shell, Valero (Texaco brand) and Total, as well as members of the Retail Motor Industry Federation – Petrol. BOSS works closely with local police forces, the Home Office and forecourt owners and operators, representing about 6,000 fuel station retailers in the UK who employ over 55,000 people. 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

motorists drive away without paying after taking fuel (Drive Offs) and customers fail to return and pay after claiming to have no means of payment with them. BOSS collects statistical information from almost 1,200 service stations supplied by its members and the charts below show the quarterly incident rates of different types of crime. The data is also used to estimate the industry loss each year. Visit www.bossuk.org for more information

Statistical Review 2013

8. Filling Stations Stats and Crim

e Data

2337

00.20.40.60.8

11.21.41.61.8

2

2008 q1 2009 q1 2010 q1 2011 q1 2012 Q1

actual on oil company attempts on oil companyactual on 3rd party attempts on 3rd party

010,00020,00030,00040,00050,00060,00070,00080,00090,000

2008q1

2008q3

2009q1

2009q3

2010q1

2010q3

2011q1

2011q3

2012Q1

2012Q3

Drive off No Means to Pay

0

2000

4000

6000

8000

10000

12000

14000

2008 q1 2009 q1 2010 q1 2011 q1 2012 Q1

0

5

10

15

20

25

30

35

2002 2004 2006 2008 2010 2012

Drive Off No Means of Payment Other

8.9 Robbery Incidents

8.11 Drive-off and No Means to Pay Losses

8.10 Burglary Losses

8.12 Estimated Industry Losses

l Robbery is theft with actual or threat of physical violence and consequently carries the risk of staff injury

l The incidents in the chart exclude attacks on cash machine servicing and cash in transit carried out by 3rd parties

l There was a high level of incidents in 2007/8 but they have fallen back since then. Reports of incidents involving 3rd parties showed a rise in 2012

l Driving off without paying for fuel remains the major source of loss at fuel service stations. Motorists claiming to have no means to pay generates the second highest source of loss

l Fuel price increases are eroding the industry’s efforts to contain losses

l Burglary losses are calculated in relation to the number of non 24 hour service stations surveyed

l Burglary losses exclude property damage

l Losses per service station continued on a long term falling trend

l Industry losses are estimated by extrapolating from data collected by BOSS in quarterly surveys

l Losses exclude fraud, credit card losses, shop theft, property damage and consequential losses such as staff time following violent incidents

Source: BOSS

Source: BOSS

Source: BOSS

Source: BOSS

Estimated Industry Losses - £million per yearDrive off and No Means to Pay LossesLoss per quarter £000 per 100 service stations

RobberyIncidents per quarter per 100 service stations Burglary Losses

£ loss per quarter per 100 non 24hr service stations

9. Air Q

uality

38

0102030405060708090

100110120

Benzene SO2 1,3 Butadiene NOx VOC PM10 CO

% 1

990

leve

ls

1996 2002 2010

0

20

40

60

80

100

120

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Aver

age

num

ber

of d

ays

Rural Average Urban Average

9.1 Vehicular Emissions 9.2 Air Pollution

l Emissions of exhaust gas pollutants have been significantly reduced from 1990 levels

l 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

l 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

l Days of moderate or higher air pollution for rural areas have shown a clear downward trend

l 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

Source: DEFRA/AEA Energy & Environment Source: DEFRA/AEA Energy & Environment

Relative Vehicular Emissions of Pollutants - 1990 base

Number of Days when Air Pollution is Moderateor Higher

9. Air Quality

One of the key drivers for the oil industry is reducing the environmental pollution from the use of fuels. Since

1990 road fuels and vehicles have become significantly cleaner, resulting in much lower exhaust emissions despite an increase in traffic levels of around 25%.

*At the time of publication data for 2011 was not available except for graph 9.2

Road transport22%

Residential16%

Other62%

9.3 Primary Particulate Matter

l In 2010 the combustion of road fuels contributed 22% of the UK’s primary emissions of particulate matter

l The residential sector produced 16% of the emissions, with the rest produced by other sources including industry and power generation

l Ambient levels of PM10 include fine particles from primary (around a third), secondary and other sources

Primary Particulate Matter Sources 2010

Source: DEFRA/AEA Energy & Environment

Statistical Review 2013

9. Air Q

uality

2339

0

10

20

30

40

50

1974 1980 1986 1992 1998 2004 2010PM10

em

issi

ons

(kto

nnes

)

0

200

400

600

800

1000

1200

1974 1978 1982 1986 1990 1994 1998 2002 2006 2010Vehi

cle

emis

sion

s (k

tonn

es)

Energy industries30%

Road transport34%

Other36%

Residential10%

Other34%

Manufacturing 7% Road Transport 13%

Fugitive Emissions from Fuels 9%

9.4 Road Transport PM10 Emissions

9.6 Road Transport NOX Emissions

9.5 Sources of NOX

9.7 Sources of Benzene

l Emissions of particulate matter (PM10) from road transport peaked in 1994 at 44 thousand tonnes

l 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

l However, the increased dieselisation of the car park will continue to impact this trend since PM10 emissions are higher from diesel than petrol

l Nitrogen oxides are acidifying and eutrophying gases and give rise to ground-level ozone

l Road transport NOx emissions have fallen by over two thirds from their peak in 1990 but rose by 4% in 2010

l 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

l Nitrogen oxides (NOx) are mainly formed as a by- product from the combustion of fossil fuels

l 30% of the UK’s total NOx emissions in 2010 were from energy industries

l The largest single source of emissions was road transport, producing 34% of the total

l Tighter EU exhaust emission standards will reduce vehicle NOx emissions

l In 2010, road transport was responsible for 13% of the UK’s benzene emissions

l Stage II Vapour Recovery is being fitted to large petrol stations

l Benzene is naturally present in crude oil and is also formed during refining

l Most benzene is removed to comply with specifications

Source: DEFRA/AEA Energy & Environment

Source: DEFRA/AEA Energy & Environment

Source: DEFRA/AEA Energy & Environment

Source: DEFRA/AEA Energy & Environment

Road Transport PM10 Emissions

Road Transport NOX Emissions

Sources of NOX 2010

Sources of Benzene 2010

9. Air Q

uality

40

0

5

10

15

20

25

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

ene

emis

sion

s (k

tonn

es)

0

2

4

6

8

10

12

14

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Vehi

cle

emis

sion

s (k

tonn

es)

Road transport43%

Residential15%

Other42%

Road transport9%

Residential3%

Fugitive emissions from

fuels19%

Solvent and other product

use44%

Others19%

Oil products6%

9.8 Road Transport Benzene Emissions

9.10 Road Transport 1,3- Butadiene Emissions

9.9 Sources of CO

9.11 Sources of VOCs

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

l In 2000 emissions of benzene were further reduced following the lowering of the benzene and aromatics limits in petrol

l Emissions of 1,3-butadiene have reduced by more than 90% since 1990

l Further reductions are expected as a greater proportion of vehicles meet new car exhaust emissions standards

l Carbon monoxide is formed from the incomplete combustion of fossil fuels

l In 2010 road transport was responsible for 43% of the UK’s carbon monoxide emissions – down 4% from the previous year

l The residential sector was responsible for 15% of emissions

l In 2010, road transport was responsible for 9% of the UK’s volatile organic compound emissions

l The main source of emissions is from the use of solvents and paints

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

Source: DEFRA/AEA Energy & Environment

Source: DEFRA/AEA Energy & Environment

Source: DEFRA/AEA Energy & Environment

Source: DEFRA/AEA Energy & Environment

Road Transport Benzene Emissions

Road Transport 1,3-Butadiene Emissions

Sources of CO 2010

Sources of VOCs 2010

9. Air Q

uality

Statistical Review 2013 41

0

250

500

750

1000

1250

1974 1978 1982 1986 1990 1994 1998 2002 2006 2010

VOC

em

issi

ons

(kto

nnes

)

9.12 Road Transport Emissions of VOCs

l Road transport emissions of VOCs have dramatically reduced since their peek in 1991, falling by around 93%

l This reduction has resulted from the introduction of catalytic converters on cars and the switch to more diesel vehicles

Source: DEFRA/AEA Energy & Environment

Road Transport Emissions of VOCs

10. Greenhouse G

ases

42

Ky oto target by 2008-2012

0

200

400

600

800

1000

1990 1994 1998 2002 2006 2010 2014 2018

Emis

sion

s (m

tCO

2e/y

ear)

Basket of greenhouse gases Carbon dioxide

Carbon budgets

Road Transport26%

Energy Supply 40%

Business16%

Residential15%

Other4%

10.1 Greenhouse Gases and Commitments

10.2 Source of Carbon Dioxide

l 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

l The 2009 UK Low Carbon Transition Plan set a target to reduce greenhouse gas emissions by 34% by 2020 relative to 1990

l Latest emissions data (2011) measures UK’s carbon footprint at 456 million tonnes p/y, and basket of greenhouse gases at 549 million tonnes

l Emissions in 2011 have already been reduced by 23% relative to 1990

l Road transport produces approximately 26% of the UK’s CO2 emissions – around 119 million tonnes

l 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 UK’s man-made greenhouse gas emissions in 2011

Source: DECC

Source: DEFRA/AEA Energy & Environment

Greenhouse Gases and Commitments Sources of Carbon Dioxide 2011

10. Greenhouse Gases

A key driver for the downstream oil industry is the UK Government’s commitment to reduce emissions

of greenhouse gases by 80% by 2050 relative to 1990 levels. The main greenhouse gas is carbon dioxide, CO2. Emissions of CO2 from road transport have significantly been reduced when compared to the overall increasing

mileage. In the last three years, the pace of reduction of average new car CO2 emissions was more than twice the rate averaged over the past decade and reflects the improvements in vehicle efficiency enabled in part by cleaner fuels.

0

20

40

60

80

100

120

140

1975 1981 1987 1993 1999 2005 2011

Emis

sion

s (m

tCO

2)

10.3 Road Transport CO2 Emissions

l 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

l Since 1990, emissions from road transport have risen at a much lower rate than vehicle mileage

l This can be attributed to the use of more efficient vehicle technologies enabled by cleaner fuels, and an increased proportion of diesel vehicles

l The CO2 levels from fuel will continue to reduce with increasing use of biofuels as required by the RED

l 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

Road Transport CO2 Emissions

Source: DEFRA/AEA Energy & Environment

Statistical Review 2013

10. Greenhouse G

ases

2343

130

140

150

160

170

180

190

200

1997 2000 2003 2006 2009 2012

CO

2g/

km

EU average UK BusinessUK Private UK Average

0

5

10

15

20

25

30

35

1975 1981 1987 1993 1999 2005 2011

Emis

sion

s (k

tonn

es)

Coal Mines4.7%

Landfill33.7%

Agriculture43%

Gas-expl, prod.+ trans.9%

Road Transport0.15%

Other9.1%

Agriculture84%

Industrial processes

1%

Road transport2%Other

13%

10.4 CO2 from New Cars

10.6 Emissions of Methane

10.5 Sources of Methane

10.7 Sources of N2O

l UK average new car CO2 emissions have fallen every year on record, although the UK average still lags behind the EU average slightly

l Future emissions of CO2 from road transport will continue to be lowered by further improvements in vehicle efficiency

l As the UK’s older vehicles are replaced and more diesel cars purchased, the fleet efficiency will improve

l The current trend to smaller vehicles will also contribute to lower emissions

l Despite the low level of emissions, reductions are still being achieved as a result of the introduction of exhaust after-treatment technologies

l Emissions in 2011 were over 90% lower than the peak around 1989

l Road transport is a minor contributor to methane emissions, producing around 0.15% of the UK total in 2011

l The main contributing sector is agriculture which accounted for over 43%

l In 2011 road transport was responsible for around 2.7 thousand tonnes of nitrous oxide (N2O), or 2% of total emissions

l Agriculture is the main source accounting for 84% of emissions, mainly from agricultural soils

l Weighted by global warming potential, nitrous oxide emissions accounted for around 6% of the UK’s man-made greenhouse gas emissions in 2011

Source: SMMT/European Commission

Source: DECC/AEA Energy & Environment

Source: DECC/AEA Energy & Environment

Source: DECC/AEA Energy & Environment

Sources of N2O 2011Road Transport Emissions of Methane

New Car Fleet Average CO2 Emissions Sources of Methane 2011

0.00

0.20

0.40

0.60

0.80

2010 2011 2012 2013 2014 2015

PSE Rate per million hoursworked

05

10152025

Tier 1 Events

11.1 Tier 1 PSE Rate 11.2 Tier 1 events, refineries

l 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

l The number of Tier 1 events reported at refineries in a 12 month period

Source: UKPIA Source: UKPIA

Process Safety Event Rate Events - Refineries

11. Process Safety

This section has been produced as one of the key objectives of UKPIA’s commitment to process safety,

and in response to the challenges set by the Buncefield Major Incident Investigation Board regarding sector level reporting for key process safety performance indicators.

To ensure consistency in reporting these indicators as an industry sector, UKPIA members have adopted the

American Petroleum Institute’s (API) Recommended Practice (RP) 754, ‘Process Safety Performance Indicators for the Refining and Petrochemical Industries’. It is on the indicators classified as Tier 1, Tier 2 and Tier 3 that this section is based.

0

1

2

Tier 1 Events

11.3 Tier 1 events, terminals

l The number of Tier 1 events reported at terminals in a 12 month period

Events - Terminals

Source: UKPIA

11. Process Safety

44

Statistical Review 2013

11. Process Safety

2345

0123456789

1011121314

Worker injuryor fatality

Third partyinjury orfatalityCommunityshelter orevacua�onFire orexplosion>$25k cost

0.00

1.00

2.00

3.00

2010 2011 2012 2013 2014 2015

PSE Rate per million hoursworked

0

1

2Worker injuryor fatality

Third partyinjury orfatality

Communityshelter orevacua�on

010203040506070

Tier 2 Events

11.4 Tier 1 events by consequence, refineries

11.6 Tier 2 PSE Rate

11.5 Tier 1 events by consequence, terminals

11.7 Tier 2 events, refineries

l 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

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

l 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

l The number of Tier 2 events reported at refineries in a 12 month period

Source: UKPIA

Source: UKPIA

Source: UKPIA

Source: UKPIA

Events - RefineriesProcess Safety Event Rate

Inland Kerosene Deliveries Inland Aviation Fuel Deliveries

11. Process Safety

46

012345

Tier 2 Events

0

1

2

3

4Recordableinjury

Fire orexplosion>$2.5k cost

PR devicedischarge toatmosphere

05

1015202530354045505560

Recordableinjury

Fire orexplosion>$2.5k costPR devicedischarge toatmosphereLoss ofprimarycontainment

01

2010 2011 2012 2013 2014 2015

Number ofHigh HighAlarmAc�va�ons(FinishedGasoline)

11.8 Tier 2 events, terminals

11.10 Tier 2 events by consequence, terminals

11.9 Tier 2 events by consequence, refineries

11.11 Tier 3 Number of High Alarm Activations on PSLG Scope Finished Gasoline Tanks*

l The number of Tier 2 events reported at terminals in a 12 month period

l 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

l 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

l 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

Source: UKPIA

Source: UKPIA

Source: UKPIA

Source: UKPIA

Events - Terminals

Events by Consequence - Terminals

Events by Consequence - Refineries

Number of High High Alarm Activations(Finished Gasoline Tanks)

Statistical Review 2013

12. Occupational H

ealth and Safety

2347

12. Occupational Health and Safety

The refining and marketing industry continued to maintain very high standards of occupational safety

during 2012. It remains one of the safest manufacturing industries in the UK, with proportionately fewer injuries occurring than in the manufacturing sector as a whole. The UK downstream industry also compares favourably

in terms of refining employee safety performance with European competitors. Particularly strong improvements have been made in contractor safety since the 1990s and these have been helped by the introduction of Contractor Safety Passport Schemes.

0

100

200

300

400

500

600

Offshore All Manuftg All UK All Service RefCont

MktEmpl

RefEmpl

>3da

y in

jurie

s/10

0,00

0 wo

rker

s

0

100

200

300

400

500

600

Mkt Employees Refy Employees Refy Contractors

>3da

y in

jurie

s/10

0,00

0 wo

rker

s

2000-01 2001-02 2002-03 2003-04 2004-05 2005-062006-07 2007-08 2008-09 2009-10 2010-11 2011-12

12.1 RIDDOR >3 day Injuries by Sector

12.2 RIDDOR >3 day Injuries by Category of Worker

l Significantly fewer injuries (RIDDOR >3 day) occur at refineries than in the manufacturing sector as a whole

l Injuries in downstream oil marketing were at a record low in 2012, with zero ‘RIDDOR > 3 day’ injuries recorded

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.

l In 2012, the frequency of injuries (RIDDOR >3 day) fell further for marketing employees and refinery contractors to their lowest levels recorded

l The number of refinery employee injuries increased again in 2012 despite a record low in 2011. These occurred during maintenance turnaround and recommissioning activities

l Marketing statistics include filling station staff directly employed by some companies

Source: UKPIA / HSE Source: UKPIA

RIDDOR >3 Day Injuries 2011-12 RIDDOR >3 Day Injuries

12. Occupational H

ealth and Safety

48

0

50

100

150

200

250

Medical Treatment Cases Restricted Work Injuries Lost Work Injuries

Repo

rted

inci

dent

s

2000 2001 2002 2003 2004 2005 20062007 2008 2009 2010 2011 2012

0

2

4

6

8

2001 02 03 04 05 06 07 08 09 10 11 2001 02 03 04 05 06 07 08 09 10 11

UKPIA CONCAWE

Lost

wor

k in

jurie

s/m

illion

hrs Ref Staff Ref Contr

Employ ee

Contractor

0

1

2

3

4

5

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012Lo

st w

ork

inju

ries/

milli

on h

rs

Employ ee

Contractor

0

2

4

6

8

10

2000 2002 2004 2006 2008 2010 2012

Lost

wor

k in

jurie

s/m

illion

hrs

12.3 Refining Injuries

12.5 Refining Lost Work Injuries

12.4 Refining Lost Work Injury Frequency

12.6 Marketing Lost Work Injury Frequency

l Injuries reported at refineries continue to fall or remain in the low quartile

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

l This reflects a continued high level of attention to safe practices

l Comparisons with European safety data from CONCAWE indicate that UK refinery employees are less likely to suffer a lost work injury than European counterparts

l In 2011, refining contractors in the UK were 80% less likely to miss work due to an injury than their European counterparts

l CONCAWE (Conservation of Clean Air and Water in Europe) is the European oil industry technical body focussed on environment, health and safety

l Contractor lost work injuries at refineries has reduced in frequency over the years as a result of a new ‘Contractor Safety Passports’ scheme, but rose in 2011

l Refining LWIF decreased in 2012 for contractors, and only slightly increased in frequency for ‘employee’ injury

l 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

l The ‘Contractor Safety Passport Scheme’ for forecourt contractors introduced by UKPIA in 1999 helped achieve this

Source: UKPIA

Source: UKPIA / CONCAWE

Source: UKPIA

Source: UKPIA

Refining Injuries

Refining Lost Work Injuries

Refining Lost Work Injury Frequency

Marketing Lost Work Injury Frequency

Statistical Review 2013

NO

TES

2349

50

NO

TES

NO

TES

2351Statistical Review 2013

UNITED KINGDOMUnited 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