Ukpia Statistical Review 2010

8/6/2019 Ukpia Statistical Review 2010

http://slidepdf.com/reader/full/ukpia-statistical-review-2010 1/40

Statistical review

2010

S

t t it i

l

i

2

0 1 0



About UKPIA UKPIA represents the non -

commercial interests of and speaks

for nine companies involved in the

UK downstream industry, whose

activities cover refining, storage

and distribution, and marketing of

petroleum products.

Our members are:

UKPIA Statistical Review 2009

2



Overview

Contents

Section Overview Page No.

1 EconomicContribution

2 Refineries

3 Road TransportFuels

6 Petrol Prices

7 Diesel Prices

8 Filling Stations

9 Air Quality

10 GreenhouseGases

11 Health & Safety

The refining and marketing sector is a major

contributor to the UK’s economy. 10

There are eight operational crude oil refineries inthe UK, which supply the equivalent of 90% of theUK’s oil product demand.

13

Petrol and diesel supply the vast majority of road

transport energy requirements. 17

19

Pre-tax petrol prices in the UK are consistently amongst

the lowest in Europe.

A wide variety of fuels are produced, and the jet fuel

market is expanding. 21

Pre-tax diesel prices in the UK are consistently amongst

the lowest in Europe.

23

The number of filling stations in the UK is declining; there

are now around 8,921.

25

UK air quality is improving; in part this is due to higher

quality fuels and improved vehicle technology.

27

Emissions of carbon dioxide from road transport per kmdriven are virtually static and the oil industry expects themto fall in the future.

29

The refining and marketing sector is one of the safest

industries in the UK.

34

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

12 Service StationCrime

Service station crime costs the industry £20m a year.Ensuring the safety of staff and customers while reducinglosses is the industry’s main aim.

36

Introduction and overview of UK refining.4

4 Biofuels The introduction of biofuels is the biggest change to road

fuels in decades.

Introductions andOverview

38

5 OtherProducts

statistical review 2010

3

I nt r o d u ct i on s an d o

v er v i ew



Introduction from the President

I am delighted to be writing the

President’s introduction to the

UKPIA Statistical Review 2010.

In 2009 we marked the 30th

anniversary of UKPIA’s formation

and I think it would be fair to say

that it proved to be one of the most

challenging years for refiners in the

UK, and across the rest of Europe,

for many decades.

Before touching upon some of

the challenges that face us, 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

in transport, one of many areas

where our member companies

continue to play a crucial role in

supplying transport fuels and other

products that support everyday

life. But above all, accurate data

is an essential tool in business

decisions, particularly in the current

challenging conditions, so 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.

Industry and government working

together will be an essential feature

of meeting the future challenges

of the refining sector, as well as

addressing the wider energy issues

facing the nation, where refiningplays, and will continue to play, a

vital role in future security of supply.

UKPIA is closely involved in

contributing to a number of

downstream oil sector studies by

DECC, particularly those looking

at refining, supply and distribution

infrastructure and compulsory oil

stocking. All these areas have a

major impact upon our security

of supply in keeping the country

moving on the roads and in the air,whilst at the same time working to

reduce carbon emissions.

In opening, I mentioned the difficult

times we face. UK refineries, in

common with those in the rest

of the EU, are under enormous

pressure through a combination

of a tough operational climate

with reduced demand for oil

products, structural imbalances in

supply/demand and a challenging

legislative background in the EUand the UK.

Analysis of the European market by

energy analysts Wood Mackenzie,

indicated that the decline in

product demand and the volatile

market conditions during 2008/9,

affected European refining industry

profitability. Increased competition

from export refineries, particularly in

Asia, and reduced demand from the

USA, the traditional export market

for excess gasoline production inthe UK and the rest of Europe,

compounded the problems. Wood

Mackenzie expects these conditions

to persist until at least 2020 with

little recovery in demand expected.

UK refineries need to compete

for major investment funds with

other projects globally. A climate

conducive to the continued

development of a strong and viable

downstream sector needs to be

promoted and with this in mind,

UKPIA and its members are looking

at a number of key legislative and

other actions that we feel may help.

We look forward to addressingthese matters with the new Minister

and his team at DECC in the

coming months.

Finally, safety remains our number

one priority for the industry, as

outlined in UKPIA’s Commitment

Statement on Process Safety

Leadership. The ongoing work

to underpin delivery of our

commitments, working closely with

member companies’ specialists

through UKPIA’s Process SafetyLeadership Network, continues. We

also aim to draw on the experience

of all the high hazard industry

sectors through the Process Safety

Forum and in continuing support

of the cross-sector Process Safety

Leadership Group.

I should like to record our thanks

for everyone’s continuing input into

all these groups and the work of

UKPIA generally.

Brian Worrall

June 2010


5


v er v i ew



Processing Crude Oil in a Typical UK Refinery

Refinery operations can be broken

down into five main processes:

• Distillationwhichseparatescrudeoil

into different refinery streams

• Conversionandreformingwhich

improve the quality of these streams

and adjusts the yields to meet market

demand

• Desulphurisationwhichreducesthe

sulphur in the streams to the

required level

• Blendingoftherefinerystreamsto

produce the final products meeting

current regulations and specifications

• Wastetreatmentensuresthatall

waste meets current regulations and

standards

Distillation

The starting point for all refinery

operations is the crude distillation unit

(CDU). Crude oil is boiled in a distillation

column, which separates the crude down

into fractions with different boiling points.

The crude oil enters the column near the

bottom and is heated to around 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 boilingpoint 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 refinery

boilers &furnaces

LPG

Unifiner

Merox

VacuumDistillation

Unit

Isomer

Reformer

Fluid CatalyticCracking Unit

TreatingUnits

Merox

Isomerisation

Unit

AlkylationUnit

GasLiq Petroleum GasPetrol componentsKero componentsDiesel componentsFuel oil components

ImportButane

Sulphur

Hydrotreater

Petrol

Kerosene

Derv/Heating oil

Fuel oils

VisbreakerUnit

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

growing demand for transport fuels and reducing demand for heating and power generation from oil. The composition

of fuels has also changed over recent years to reduce the environmental impact of their use. In addition to transport

fuels, refineries produce a wide variety of important feedstocks used in the manufacture of other products, such as

petrochemicals, lubricating oils, solvents, bitumen and petroleum coke for aluminium smelting.

No two refineries are identical. They share common technology such as crude distillation, but each UK refinery takes a slightly

different route to achieve the common goal of extracting maximum value from each barrel of crude oil processed.

Typical refinery process units

6

I nt rod uct i ons and o

v erv i ew



Using the same approach as before

the VDU separates into different

components from gas oil to a heavy

liquid 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 and

Blending of Different

Streams

Distillation does not produce enough

of the lighter, more valuable products

such as petrol that the market wants.

Therefore conversion units eg fluidised

catalytic cracking (FCC) are used to

process some of the streams from the

vacuum distillation column with the aim

of turning the heavy components into

lighter transport fuels. Reforming units are

used to upgrade the octane of the petrol

components produced from the CDU.

Desulphurisation units are then used

to remove sulphur from the products.

This enables the products to meet

today’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 Products

LPG (liquified petroleum gas) is taken

directly from the crude distillation unit

and the FCC unit.

Petrol streams from the distillation

process are cleaned in the unifiner.

This unit strips out excess sulphur

and nitrogen compounds as hydrogen

sulphide and ammonia.

The streams are then sent on to the

catalytic reformer and isomer units for

processing to raise the octane number

of the petrol by modifying its molecular

structure. The reformer produces

a large amount of hydrogen as a

by-product, and this is recycled for use

in desulphurisation (hydrotreater) units.

Finally the petrol streams from the

reformer, fluidised catalytic cracking

unit, the isomerisation unit and the

alkylation unit are blended to meet fuel

specifications and current regulations.

Jet fuel/kerosene streams from

distillation are cleaned in the merox unit.

This uses a caustic wash and additives

to remove sulphur compounds and to

inhibit gum formation.

Diesel/heating oil streams are

processed in the hydrotreater, which

removes sulphur and other unwanted

compounds using hydrogen and a

catalyst. 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 the

VDU are processed in the FCC unit

whilst the heavier residues from the VDU

can be processed in the visbreaker.

In the FCC unit, heavy oils are reacted at

high temperature with a catalyst which

breaks the heavy fractions 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 are

blended into petrol, LPG, diesel/gas oil

and fuel oil product streams.

In the visbreaker, the heavy fractions

are held at high temperature until they

become less viscous. This stream is

then blended into other fuel oil product

streams.

The fuel oil components from the

different units are then blended to give

fuel oil meeting current regulations and

specifications.

Desulphurisation and

Waste Treatment

The sulphur recovery unit takes waste

hydrogen sulphide from the units which

remove sulphur from product streams.

The hydrogen sulphide is then reacted

with oxygen to give solid elemental

sulphur and water vapour. After

treatment, this sulphur is sold to other

process industries.

All other waste streams are treated

according to the current regulations.


7


v er v i ew



The members of UKPIA run the eight major operating refineries in the UK, which are situated around the coast for ease of

crude tanker access. They supply over 90% of the inland market demand for petroleum products. The UK has the fourth

largest total refining capacity in the EU and some UK refineries are among the largest in Europe.

Over many years, the refining sector has sought to minimise its impacts upon the environment and improvements continue

to be made to reduce emissions.

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

Distribution of Products

Around 50 major oil terminals are supplied by pipeline (51% of the volume), rail (15%) and sea (34%) from UK refineries. There is an

extensive network of private and Government owned pipelines in the UK, with around 3,000 miles of pipeline currently in use.

The 1500 miles of privately owned UK pipeline network carries a variety of oil products, from road transport fuels to heating oil and

aviation fuel. It provides an efficient and robust distribution system across the UK and directly provides jet fuel for some of the 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.

INEOS Grangemouth

Petroplus Teesside(in economic shutdown)

ConocoPhillips Humber

Total Lindsey

Petroplus Coryton

ExxonMobil Fawley

Chevron Pembroke

Murco Milford Haven

Shell Stanlow

Refineries in the UK

8

I nt rod uct i ons and o

v erv i ew



U.K.O.P.

Shell

BP

Chevron

Total

ESSO PIPELINE SYSTEM

MAINLINE PIPELINE SYSTEM

Esso

Chevron

Total

Shell

WALTON GATWICK PIPELINE

BP

Shell

Chevron

WEST LONDON PIPELINE

BP

Shell

Chevron

Total

FINA-LINE

PEMBROKE AND

MILFORD HAVEN

PURFLEETGATWICK

HUMBER AND LINDSEY

STANLOW

NOTTINGHAM

KINGSBURY

BIRMINGHAM

BUNCEFIELD CORYTON/THAMES

AVONMOUTH

HEATHROW

FAWLEY

WEST LONDON

MANCHESTER

NORTHAMPTON

INGRESS LOCATIONS:

KILLINGHOLME

(Total, Conoco, 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

PURTON

THAMES

HAVEN

KILLINGHOLME

MISTERTON

SAFFRON

WALDEN

ALDERMASTON

HALLEN

Government oil pipelines in England and Wales

Privately owned oil pipelines in England and Wales


9


v er v i ew



5 Year Average Return on Capital Employed

0

10

20

30

UKPIA Manufacturing Services Upstream Oil

Production

R O C E ( % )

Contribution to Balance of Payments

-1000

0

1000

2000

1992 1994 1996 1998 2000 2002 2004 2006 2008

C o n t r i b u t i o n ( £ m )

Duty from Road Fuels

0

5

10

15

20

25

30

9 3/ 94 9 5/ 96 9 7/ 98 9 9/ 00 0 1/ 02 0 3/ 04 0 5/ 06 0 7/ 08 0 9/ 10

(p)

D u t y ( £ b n )

1. Economic Contribution and Refinery Economics

1.1 Contribution to

Balance of Payments

1.2 Duty from Road Fuels

• Oilrefininghashistoricallybeenamajorcontributor

to the UK’s balance of payments

• However,thegrowingdemandfordieselandjetfuel, and the falling demand for petrol, has resulted in the

UK becoming increasingly reliant on large-scale

imports of diesel and jet fuel

• Oilproductswillremaincentraltothenation’senergyneeds for decades to come, but increasingly alternative

fuels will play a more important role

The oil refining and marketing industry plays an important

role in the UK’s economy, supplying over 33% of the

primary energy used in the UK from a secure supply

base. Around 130 million litres of petrol and diesel

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

customers. Our industry collects over £30 billion in fuel

duty and VAT each year, and employs over 150,000 people

at refineries, head offices, forecourts and as contractors.

Source: DECC Source: HM Treasury/HMRC

Source:UKPIA/Office for National Statistics

• The2009Budgetestimatedfueldutyreceiptsfor

2009/10 are £26.2 billion. In addition, around £6.9billion was collected as VAT on road fuels

• Thiscombinedfigureiscomparabletoarounda fifth of UK’s annual expenditure on road transport

• Theaveragereturnoncapitalemployedfor1999-2008 in the downstream oil industry

was 11.6%

• Overthesametimeperiod,manufacturingindustries’ ROCE was 9.45% on average,

and that of service industries was 16.4%

• Serviceindustriesincludecommunications,hotels, catering, distribution, transport and

storage.

1.3 Average Return on Capital Employed

10

1

E conomi cC ont ri b ut i onand R ef i nery E conom

i cs



Gross Sales

0

20

40

60

80

100

120

1993 1996 1999 2002 2005 2008

S a l e s ( £ b n )

UKPIA Refinery Share of Inland Consumption

82

84

86

88

90

92

94

1993 1996 1999 2002 2005 2008

%

s h a r e o f i n l a n d c o n s u m p t i o n

1.6 UKPIA Refinery Share

of Inland Consumption1.7 Regional Refining

Margins

1.4 Gross Sales

Refining and Marketing Employment

0

5000

10000

15000

20000

25000

1993 1996 1999 2002 2005 2008

E m p l o y e e s

1.5 Refining and MarketingEmployment

Source: UKPIA Source: UKPIA

Source: UKPIA Source: BP Statistical Review of World Energy 2009/ BP Trading Conditions Update

• In2008,grosssalesbyUKPIAmembercompaniesin the UK were, including duty, £99 billion

• Thisisaconsiderableincreaseonthepreviousyears’sales, reflecting that year’s record crude oil prices,

which lead to higher product prices

• In2008,almost90%ofinlandoilconsumptionintheUK was supplied by UKPIA member companies

• Thisprovidedvitalenergyresilienceandsecurityofsupply to the nation

• UKrefineriesalsoexportproductsprimarilytoEurope and America

• Refiningisahighlycyclicalbusinesswithlowmarginsoccurring in 1999 and 2002

• EuropeanandAsianrefinerymarginshavebeensignificantly lower than those achieved by refineries

on the US Gulf Coast

• 2009witnessedaverylowmarginofaround$0.2per barrel in Singapore, and an overall significant

drop in margin in other regions reflecting in part

weaker oil demand due to the recession

Regional Refining Margins

0

5

10

15

1992 1996 2000 2004 2008

M a r g i n $ / b b l

NW Europe Singapore US Gulf Coast

• Therefiningandmarketingindustryisamajoremployer in the UK, with over 16,000 people directly

employed by UKPIA members

• Inaddition,over150,000peopleareemployedinother roles, such as service station staff, contractors

and road tanker drivers


11

1 .E c on omi c C ont r i b ut i on an d R ef i n er y E c on om

i c s



NWE Refining Margins Brent Crude (at 2000 prices)

0

1

2

3

4

2001 2003 2005 2007 2009

M a r g i n $ / b b l

1.8 NWE Refining Margins

Crude and Ex-Refinery Prices 2009

0

5

10

15

20

25

30

35

40

Jan Feb Mar Apr May Jun Ju l Aug Sep Oc t Nov Dec

P e n c e

p e r l i t r e

Petrol Diesel Crude Oil

1.9 Crude and Ex-Refinery Prices

Source: Wood Mackenzie Source: Wood Mackenzie/OPAL

• TheunderlyingtrendforEuropeanrefiningmarginssince2000hasbeenaround$2perbarrelinconstantmoney, after adjusting for RPI, but in 2009 dropped

significantlytobelow$1perbarrel

• Refiningmarginisthedifferencebetweencostof crude purchased and value of product sales

and needs to cover fixed costs of operators and

maintenance, and return on capital

• Wholesaleex-refinerypricestrackedcrudecloselythroughout 2009

• Crudeoilhasbeenthemaindriverforpricesofrefinedproducts such as petrol and diesel and reflected in

pump prices in the UK and globally

12

1

E conomi cC ont ri b ut i onand R ef i nery E conom

i cs



INEOS Grangemouth

Petroplus Teesside(in economic shutdown)

ConocoPhillips Humber

Total Lindsey

Petroplus Coryton

ExxonMobil Fawley

Chevron Pembroke

Murco Milford Haven

Shell Stanlow

2. Refineries

2.1 UK Refineries

There are now eight 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 has the fourth largest total refining

capacity in the EU, despite refinery closures in 1997,

1999 and 2009, and some UK refineries are among the

largest in Europe.

Over many years the refining sector has sought

to minimise its impacts upon the environment and

improvements continue to be made to reduce emissions.

Number of Operating UKPIA Refineries

0

2

4

6

8

10

12

14

16

18

20

1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009

N u m b e r o f m a j o r r e f i n e r i e s

2.2 Number of Refineries

European Capacity 1996 / 2008

500

1000

1500

2000

2500

3000

Germany Italy France UK Spain Neth Belgium

T h o u s a n d

b a r r e l s

p e r d a y

1 99 6 2 00 8

2.3 European Capacity

Source: UKPIA

BP Statistical Review of World Energy 2009

Source: UKPIA

• Thereareeightmajorcrudeoilrefineriesoperatingin

the UK which supply the bulk (little under 90%) of theinland market demand for petroleum products

• Therefineriesaresituatedaroundthecoastandmostare connected to pipelines for product distribution

• Threerefinerieshavebeensoldinrecentyears:Grangemouth Refinery was sold to Ineos in 2005,

Coryton Refinery was sold to Petroplus in 2007, and

TotalsoldtheirshareofMilfordHaventoMurcoin2007

• In2009thePetroplusTeessiderefinerywasplacedineconomic shutdown and is currently operating as an

import terminal

• ThenumberofmajoroilrefineriesintheUKhas

fallen from a high of 19 in 1975 to 8 currently inoperation

• Thereareanothertwosmallerspecialityrefineries in the UK producing bitumen and

other products

• Thereare98mainstreamrefineriesintheEU

• In2008theUKhadthefourthlargest refining capacity in Western

Europe at over 1.8 million barrels

per day

• 1996wasUK’slastyearholdingthe position of third largest refining

capacity; refinery closures in the UK

and expansion in France reversed

their positions


13

2 .R ef i n er i e s



Destination of Oil Products 2009

Exports

Domesticdeliveries

2.7 Destination of

Oil Products

Refinery Throughput

-

20

40

60

80

100

120

140

1973 1977 1981 1985 1989 1993 1997 2001 2005 2009p

T h r o u g h p u t ( m i l l i o n t o n n e s )

2.4 Refinery Throughput 2.5 Refinery Energy Efficiency

Sources of Crude Oil 2008

Others

Africa

Russia

UK

Middle East

Norway

2.6 Sources of Crude Oil

Source: DECC (DUKES) Source: DECC (DUKES)


Refinery Energy Efficiency

0

1

2

3

4

5

6

7

8

1973 1979 1985 1991 1997 2003 2009p

F u e l u s e d a s % o

f t h r o u g h p u t

• Sincetherefineryclosuresof1997and1999,UKrefinery throughput has fallen from its recent peak of

97 million tonnes of crude oil

• UKrefinerythroughputwas75milliontonnesin2009

• Throughputdependsprimarilyonproductdemandand capacity

• Refineriesusetheequivalentofbetween5and6%ofthroughput as fuel, to provide energy to refine crude

oil into products for consumers

• Moreenergyisrequiredtomeetthecurrenthighdemand for cleaner transport fuels and to meet

challenging environmental standards, but this has

been offset by improved energy efficiency at refineries

• Slightlyunder80%ofUKrefinerycrudethroughputisfrom the North Sea (UK and Norway)

• Currently,around8%ofcrudeoilprocessedatUKrefineries arrives from Russia and the Middle East,

and a little over 10% from Africa

• Arangeofsourcesofcrudeoilprovidesasecuresupply of energy

• ThisisimportantascrudeoutputfromtheUKNorth

Sea will decline over the coming decade

• ThemajorityofoilproductsprocessedatUKrefineries are consumed in the UK

– approximately 66%

• TheEUisthemaindestinationforUKoilproductexports, although the US is also an important export

area, particularly for excess petrol

14

2

R ef i neri es



Products Produced 2009

0

10

20

30

Petrol Gas

Oil/Diesel

Jet Fuel Fuel Oil Petroleum

Gases

Burning Oil Others

P r o d u c t i o n ( m i l l i o n t o n n e s )

2.8 Product Produced

Product Demand 2009

0

10

20

30

Petrol Gas

Oil/Diesel

Jet Fuel Fuel Oil Petroleum

Gases

Burning Oil Others

D e m a n d ( m i l l i o n t o n n e s )

2.9 Product Demand

Changes in Refinery Production

0

20

40

60

80

100

1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009p

U K p r o d u c t i o n ( m i l l i o n t o n n e s / a n n u m )

Fuel Oil Gas Oil/Diesel Jet Petrol

2.10 Changes in Refinery

Production

Changes in Product Demand

0

20

40

60

80

100

1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009p

U K s

a l e s ( m i l l i o n t o n n e s / a n n u m ) Fuel Oil Gas Oil/Diesel Jet Petrol

2.11 Changes in Product

Demand

Source: DECC (DUKES - provisional data) Source: DECC (DUKES - provisional data)


• UKrefineriesareconfiguredtomeethistorichigherdemand for petrol and fuel oil

• Asaresultofreducingdemand,refineriesnowproducean excess of these products and are in deficit in others

such as jet fuel and diesel

• Alteringrefineryproductiontomeetchangingdemandwill require major investment

• SeeUKPIA’spaper“Meeting our Energy Needs:

The Future of UK Oil Refining” for more information

• Themajorityofoilproductdemandcomesfromthetransport sector

• UKrefinerieshavebeenunabletoproduceenough jet fuel or diesel, consequently these are increasingly

imported to meet demand

• Themajorchangeinrefineryproductionoverthelastforty years has been a significant reduction in the

quantity of fuel oil produced

• Theincreaseingasoil/dieselandpetrolseeninthe80s and 90s has since levelled off

• Overthesameperiodsomeofthesurplusfueloilhas been converted into petrol and gas oil/diesel or

exported

• Themajorchangeinproductdemandsince1979has been the decline of fuel oil demand and the

growth of transport fuels

• Since1990demandforpetrolhasfallenbyover30% and gas oil/diesel and jet combined have

increased by over 50%

• Naturalgashaslargelyreplacedfueloilforpowergeneration and gas oil for space heating


15

2 .R ef i n er i e s



Downstream VOC Emissions

0

50

100

150

200

250

1972 1976 1980 1984 1988 1992 1996 2000 2004 2008

E m i s s i o n s ( k t o n n e s )

Refining/Storage VOC Emissions Distribution of oil products VOC emissions

2.15 Downstream VOC

Emissions

Refinery CO2 Emissions

0

5

10

15

20

25

30

1972 197 6 1980 1984 1988 1992 1996 2000 2004 2008

E m i s s i o n s ( m i l l i o n t o n n e s )

2.12 Refinery CO2 Emissions

Refinery SO2 Emissions

0

60

120

180

240

197 2 19 76 198 0 198 4 19 88 199 2 199 6 20 00 200 4 200 8

E m i s s i o n s ( k t o n n e s )

2.13 Refinery SO2 Emissions

Refinery NOx Emissions

0

10

20

30

40

50

197 2 19 76 19 80 19 84 19 88 19 92 1 99 6 20 00 20 04 2 00 8

E

m i s s i o n s ( k t o n n e s )

2.14 Refinery NO X

Emissions

Source: DECC (GHG Emissions) Source: AEA Energy & Environment

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

• Refineriesemitunder3%oftheUK’sCO2 emissions

and are included in the EU Emissions Trading Scheme

• Althoughittakesmoreenergytosupplyanincreaseddemand for transport fuels, particularly low sulphur

fuels, refinery CO2 emissions have fallen since 1970

as a result of improved energy efficiency and refinery

closures

• RefineriesreleaseSO2 when sulphur, naturally present

in crude oil, is burnt

• RefinerySO2 emissions have fallen by 60% since

1970, to around 72,000 tonnes in 2008

• Thisisduetoinvestmenttoincreasesulphurrecoveryatrefineries and the use of low sulphur North Sea crude oil

• Althoughtherehasbeenanincreaseinrecentyears due to the use of higher sulphur crude oils, further

reductions are planned

• NOxisformedasaresultofthecombustionoffossil fuels, and hence is produced at refineries

• RefineryNOxemissionshavefallenbyoverathirdsince 1990 to under 25,000 tonnes

• Thisisduetotheinstallationofabatementtechnology at refineries

• Volatileorganiccompoundsareproducedinthedownstream oil industry from the evaporation of oil

products

• Since1990,refineryandstorageemissionshavefallenby 70%, to 29,000 tonnes due to leak detection and

repair programmes

• Additionalreductionsinthedownstreamindustryaredue to the introduction of vapour recovery equipment

at storage facilities, on petrol deliveries and at many of the higher throughput filling stations

16

2

R ef i neri es



Demand for Road Travel

0

100

200

300

400

500

600

700

1 95 0 1 96 0 1 97 0 1 98 0 1 99 0 2 00 0 2 01 0 2 01 5 2 02 5

B i l l i o n k m d

r i v e n

3. Road Transport Fuels

3.1 Demand for Road Travel

Demand for road transport has increased significantly

over the last 50 years and is currently projected to

continue to grow in the future. Over recent years the

quality of road fuels has improved with the complete

removal of lead, the virtual removal of fuel sulphur

and lower aromatics levels. These improvements have

reduced atmospheric emissions of pollutants, but more

importantly have enabled new technologies which

improve the efficiency of the vehicles and reduce the

environmental impact of road transport.

Total Road Fuel Sales

Petrol

Diesel

0

10

20

30

40

50

60

1973 1979 1985 1991 1997 2003 2009p

T o t a l s a l e s

( b i l l i o n

l i t r e s )

3.2 Road Fuels Sales

Petrol Sales

0

5

10

15

20

25

30

35

1973 1979 1985 1991 1997 2003 2009p

T o t a l s a l e s

( b i l l i o n

l i t r e s )

• Salesofpetrolhavebeenfallingsince reaching a peak of 33

billion litres in 1990 and in 2009

represented around 47% of road

transport demand by litres sold

• Salesofpetrolwere22billionlitresin 2009

3.3 Petrol Sales

Source: DfT (“DfT Road Traffic Forecast 2008”) Source: DECC

Source: DECC

• Roadtransportdemandhasbeenonanupwardtrend for decades, and despite a flattening in

growth during the recession, demand is forecast to

increase in future

• By2025demandispredictedtohavegrownbyalmost 60% from 1990 levels, although at a slightly

lower rate than past decades

• Whilsttotalroadfuelsaleshaveshownalongterm increase since 1970, they dropped slightly

in both 2008 and 2009 due to a combination of

higher prices driven by the cost of crude oil and the

economic recession

• Outoftotalsales,theshareofpetrolhasbeenfalling, whilst that of diesel has been rising due to

an increased proportion of diesel vehicles


17

3 .R o a d T r an s p or t F

u el s



Sales of LPG for Transport

0

50

100

150

200

250

300

1 99 9 2 00 0 2 00 1 2 00 2 2 00 3 2 00 4 2 00 5 2 00 6 2 00 7 2 00 8 2 00 9

T o t a l s a l e s ( m i l l i o n l i t r e s )

3.7 Sales of LPG for

Transport

Diesel Sales

0

5

10

15

20

25

30

1973 1979 1985 1991 1997 2003 2009p

T o t a l s a l e s

( b i l l i o n

l i t r e s )

3.4 Diesel Sales

Max. Sulphur in Diesel

0

1000

2000

3000

4000

1990 1995 2000 2005

P a r t s p

e r m i l l i o n s u l p h u r ( p p m )

Legal Limit UK Actual

3.6 EU Max. Sulphur

in Diesel

Source: BSI/UKPIA Source: HM Revenue and Customs

Source: DECC

Max. Sulphur in Petrol

0

500

1000

1500

2000

2500

1990 1995 2000 2005

P a r t s p e r m i l l i o n s u l p h u r ( p p m )

Legal Limit UK Actual

3.5 Maximum Sulphur in Petrol

Source: BSI/UKPIA

• Salesofdieselhavebeensteadilyincreasingforthe last twenty years reaching over 24 billion litres, and

in 2009 represented around 53% of road transport

demand by volume

• Thisistheresultoftheincreasedpopularityofdieselvehicles due to their high efficiencies, perceived lower

running costs, and increased demand from commercial

vehicles

• However,dieselsalesfellslightlyandcontinuedtostagnate into 2009 due to high diesel prices and the

economic situation

• Thelevelofsulphurinroadfuelsislimitedbylawto ensure sulphur emissions are reduced and to

enable new vehicle technologies

• FromJanuary2009,allUKpetrolwas“sulphurfree”, containing less than 10 parts per million

sulphur

• Thelevelofsulphurindieselisalsolimitedbylaw

• AlldieselintheUKbecame“sulphurfree”byJanuary2009(below10ppm)

• Aswellaspetrolanddiesel,liquefiedpetroleumgas(LPG) is used as a road fuel in the UK

• SalesofLPGroserapidlybetween2000and2006based upon a favourable duty incentive and favourable

treatment under the London Congestion Charge

• However,thegradualreductioninthedutydifferentialbetween LPG and alternative fuels since has impacted

on the sales of LPG/petrol cars, which in turn has

affected sales of LPG, lowering sales to 212 million litres

down from its 2006 peak of almost 250 million litres

18

3

R oad T rans port F

uel s



4. Biofuels

4.1 RTFO Targets

Biofuels have the potential to reduce UK emissions of

carbon dioxide from road transport. The main biofuels

available today are bioethanol and biodiesel, and

standards currently permit these fuels to be blended up

to 5% by volume with petrol and 7% with diesel.

The introduction of biofuels into road transport fuels is

the single biggest change to road fuels for decades.

The downstream oil industry is working hard 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.

4.2 UK Bioethanol

Consumption

UK Biodiesel Consumption

0

200

400

600

800

1000

1200

0 1/ 02 0 2/ 03 0 3/ 04 0 4/ 05 0 5/ 06 0 6/ 07 0 7/ 08 0 8/ 09 0 9/ 10

M i l l i o n l i t r e s

4.3 UK Biodiesel Consumption

Source: HMT Source: HMRC *(provisional data covering period April 2009 to March 2010)

RTFO Targets

0%

2%

4%

6%

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

% v

o l u m e b i o f u e l i n r o a d f u e l s

UK Bioethanol Consumption

0

40

80

120

160

200

240

280

320

360

400

440

480

0 1/ 02 0 2/ 03 0 3/ 04 0 4/ 05 0 5/ 06 0 6/ 07 0 7/ 08 0 8/ 09 0 9/ 10

M i l l i o n l i t r e s

• BetweenJuly2002andMarch2010, the Government introduced a

20 ppl duty reduction on biodiesel

• In2009/10,UKbiodieselconsumption was 1068* million litres

• Thisrepresentsover4%ofdieselsales by volume

• Thedutydifferentialof20pencewas removed in 2010, with the buy

out price set by the Government at

30 ppl

• TheRTFOwasintroducedinApril2008,withanoriginal target of 5% biofuel content in road fuels

by 2010/11

• However,thiswasrevisedduetosustainabilityconcerns and the targets for the biofuel content of

road fuels are now 3.5% by 2010/11, rising to 5%

by 2013/14

• Atthe5%levelitisestimatedthatupto3milliontonnes of carbon dioxide would be avoided

• BetweenJanuary2005andMarch2010,theGovernment introduced a 20 pence per litre duty

reduction on bioethanol

• In2009/10,UKbioethanolconsumptionstoodat430* million litres, which represents around 2% of

all petrol sales by volume

• Thedutydifferentialof20pencewasremovedin2010, with the buy out price set by the Government

at 30 ppl

Source: HMRC *(provisional data covering period April 2009 to March 2010)


19

4 .B i of u el s



UK Progress towards the RTFO Targets

0%

1%

2%

3%

4%

Jan Apr Jul Oct Jan Apr Jul Oct Jan

% v

o l u m e b i o f u e l s i n r o a d f u e l s

Bioethanol Biodiesel

2008 2009 2010

4.4 UK Progress towardsRTFO Targets

Source: HMRC/RFA

• TheUKadded2.6%ofbiofuelsduringthefirstyearofthe RTFO (2008/09), exceeding the target of 2.5%

• Inthe2nd year of the RTFO (2009/10), the current

provisional data indicates the UK is close to meeting

the target of 3.25% of biofuels

• For2010/2011,thetargetis3.5%

Sources of Biofuels by Country

Brazil 19%

Argentina 19%

Denmark 2%

Unknown 14%

Indonesia 2%

Malaysia 5%

Germany 8%

Other 3%

France 4%

UK 10%

USA 14%

4.6 Sources of Biofuels Used in the UK

• Roughly10%ofbiofuelsusedareproducedintheUK;the remainder is imported

NB: ‘Other’ includes Belgium, Canada, Hungary, Ireland, Italy, Latvia,

Netherlands, Pakistan, Poland, Sweden, Switzerland & Ukraine

Source: RFA (covering period April 09 – Jan 10)

Duty Differentials and Buy Out for Biofuels

0

10

20

30

40

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

P e n c e

p e r l i t r e

Duty Differential Buy Out

4.5 Duty and Buy Outfor Biofuels

Source: HMT/ RFA

• Adutydifferentialof20penceperlitrehasbeeninplacefor biodiesel since 2002 and for bioethanol since 2005

• Inaddition,a‘buyout’pricefortheRTFOwasintroduced at 15 ppl in 2008/09, giving a combined

incentive of 35 ppl

• Thebuyoutpriceeffectivelyactsasasafetyvalvefor the fuel supplier if the bio component is not added

to the final blend

• Thedutydifferentialwasremovedin2010,withthe buy out price set by the Government at 30 ppl

Sources of Biofuels by Crop

Palm 8%

Sugar Cane 19%

Sugar Beet 4%

Oilseed 14%

UCO 3%

Unknown 7%

Other 1%

Tallow 14%

Wheat 1%

Soy 29%

• Ethanolismostlysourcedfromsugarcane

• Biodieselismostlysourcedfromsoyandrape

20

4

B i of uel s



5. Other Products

5.1 Refining Production

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,

domestic/industrial demand for other fuels has 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.

5.2 Fuel Oil Deliveries

5.3 Inland Gas Oil Deliveries

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

Inland Fuel Oil Deliveries

0

10

20

30

40

50

1973 1979 1985 1991 1997 2003 2009p

D e l i v e r i e s ( m i l l i o n t o n n e s )

Inland Gas Oil Deliveries

0

2

4

6

8

10

12

14

16

1973 1979 1985 1991 1997 2003 2009p


• TheUKdemandforgasoilhasfallen since 1970

• Gasoilisproducedfromasimilarfraction of crude oil as diesel

• Thereductionindemandismainlydue to fuel switching to natural gas

• RefineriesproduceNaphtha,LPG,roadfuels,

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

feedstocks

• Thecurrenttrendofproductionisawayfromheatingfuels (fuel and gas oils) and towards transport fuels

(petrol, diesel and jet fuel)

• Refinerieswillrequiremajorinvestmenttomeettheincreased demand for diesel and jet fuel

• Thedemandforfueloilhasreducedsignificantly

since 1970, rising only briefly in 1984 due to theminers’ strike

• Thereductionindemandismainlyduetofuelswitching to natural gas by electricity generators

• Productspecificationchangesformarinefuelsandotheroffroaddiesel/gasoilfuelsfromJanuary2011,moving them to a lower sulphur content, will impact

middle distillate capacity

Source: DECC

Refining Production in 2009*

Petrol

LPG

JetandKerosene

Fuel Oil

Diesel

and Gas

Oil

Bitumen

Naphtha


21

5 . Ot h er P r o d u ct s



5.7 Lube Oil Deliveries

5.4 Kerosene Deliveries

5.6 Bitumen Deliveries

Source: DECC

• Kerosene(alsocalledburningoil)isusedasfuelfor domestic and industrial heating, and sales are

typically higher during winter

• Inlandsalesofkerosenehaveincreasedsince1980

• NewlegislationintroducedinJanuary2008restrictedthe sulphur levels in kerosene to 0.1%

Source: DECC

Inland Aviation Fuel Deliveries

0

3

6

9

12

15

1 97 3 1 97 7 1 98 1 1 98 5 1 98 9 1 99 3 1 99 7 2 00 1 2 00 5 2 00 9p


5.5 Aviation Fuel Deliveries

• Aviationturbinekeroseneisusedinjetengines

• SalesofAVTURhavebeengrowingsteadilysince1970, and growth is projected to continue

• Aviationfueldemandhasfalleninthelasttwoyearsdue to reduced passenger numbers and cargo

volumes experienced during the recession

Source: DECC

Inland Kerosene Deliveries

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1973 1979 1985 1991 1997 2003 2009p


Inland Bitumen Deliveries

0

0.5

1

1.5

2

2.5

3

1973 1979 1985 1991 1997 2003 2009p


Inland Lube Oil Deliveries

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1973 1979 1985 1991 1997 2003 2009p


• Demandforbitumenhasdeclinedtojustover1.3million tonnes/pa

• Bitumenisproducedfromsomeoftheheaviestfractions of crude oil and is mainly used for road

surfacing and roofing

• Salesoflubesandgreaseshavefallensince1970toaround 0.5 million tonnes/pa

• Improvedenginesrequirefeweroilchangesandtheuse of synthetic lubricating oils has also contributed

to this reduction

• Theintroductionofbiodieselcouldseeoildrainintervals reducing and demand for lubes increasing

5

Ot h erP rod uct s

Source: DECC

22



Average Contribution to Pump Price 2009

Ex-Refinery

Price

27%

Retail /

Ex-refinery

Price Spread

5%

Duty / VAT

67%

6. Petrol Prices

6.1 Petrol Pump Price

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 has been

consistently amongst the lowest in Europe. However,

despite this competition, the price paid by consumers at

the pump has been one of the highest in Europe, due to

the higher levels of duty applied by the Government

(VAT and duty combined represent around 67% of the

average pump price in 2009).

Following the 2008 price spike, average annual petrol

prices dropped in 2009 quite significantly. Despite this

reduction, the price in real terms still remains higher

than in 2007.

6.2 Average Contribution

to Pump Price

6.3 European Prices

Source: Wood Mackenzie/OPAL *The price of petrol in figure 6.1 is in money of the day Source: Wood Mackenzie/OPAL

UK Petrol Pump Price Breakdown

Pre-tax

Duty/VAT

0

20

40

60

80

100

120

1989 1993 1997 2001 2005 2009

P e n c e

p e r l i t r e

Pump Prices of Unleaded Petrol 2009

0

20

40

60

80

100

120

UK Ger Spain France Neth Italy Bel Lux

P e n c e

p e r l i t r e

E xc l D ut y & VAT D ut y & VAT

• In2009theUKpre-taxpriceofmajor brands of unleaded petrol

was again the lowest in Europe at

32.5 ppl

• ThepricepaidatthepumpbyUK consumers was, however,

considerably higher due to the

levels of fuel duty

• Petrolpricesfellin2009followingthepreviousyearsunprecedented price increase

• Theaverageannualpre-taxpriceofpetrolroseoverthe last few years after a long period of relative consistency,

and continued to do so in 2009 when compared to

2007 and previous years, with the exception of 2008

• Thisincreasereflectedthegeneralriseincrudeoil prices, resulting from increased global demand

• TheincreasesindutyinDecember2006,October 2007, December 2008 and April 2009 also

contributed to the rise in pump prices

• DutyandVATarethemaincomponentsofthepumpprice of petrol in the UK, making up over two thirds

of the total

• From1st April 2009 duty went up from 52.35p to

54.19p and again in October to 56.2p on a litre of

unleaded petrol

• VATischargedonboththecostoffuelandduty. It was temporarily cut from 17.5% to 15% on 1st

December 2008 to 1stJanuary2010

• Theaverageretail/ex-refinerypricespreadfor2009was a little over 5 ppl

Source: Wood Mackenzie/OPAL


23

6 .P et r ol P r i c e s



6.4 Pre-Tax Petrol andCrude Prices

• Thepre-taxpriceofpetrolhasgenerallyreflectedthecost of crude oil

• Theeffectofcrudepricesonthefinalpumppricehasbeen lessened by the high levels of fuel duty

• The£/$exchangehasbeenakeyfactorindetermining fuel prices


Fuel Price and Tax Comparison

0

50

100

150

200

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

1 9 9 0

=

1 0 0

Duty & VAT

Pre Tax Price

6.5 Fuel Price & TaxComparison

• Thepre-taxpriceofpetrolonlyrecentlyincreasedrelative to 1990 levels, having remained below RPI

adjusted 1990 prices until 2005

• DutyandVATsteadilyincreasedrelativeto1990levelsthroughout the 90s, until they were effectively frozen

following protests in September 2000

• Theyhaverecentlyrisenagain,andcontinuetoshowa greater increase over the past 18 years than the

pre-tax price

Source: Wood Mackenzie/ONS

Pre-Tax Petrol and Crude Prices

0

10

20

30

40

50

1 98 9 1 99 1 1 99 3 1 99 5 1 99 7 1 99 9 2 00 1 2 00 3 2 00 5 2 00 7 2 00 9

P e n c e

p e r l i t r e

Petrol Price

Crude Oil Price

24

6

P et rol P ri ces



Average Contribution to Pump Prices 2009

Duty/VAT 65%

Retail/ Ex-

Refinery Price

Spread 6%

Ex-Refinery

Price 29%

7. Diesel Prices

7.1 Diesel Pump Price

• Dieselpricesfellin2009followingthepreviousyear’s

unprecedented price increase

• Theaverageannualpre-taxpriceofdieselroseover

the last few years after a long period of relative consistency,

and continued to do so when compared to 2007, with the

exception of 2008

• Thisincreasereflectedrisingcrudeoilprices,resulting

from increased global demand

• TheincreasesindutyinDecember2006,October2007,

December 2008 and April 2009 also contributed to the

rise in pump 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 has been

consistently amongst the lowest in Europe. Despite this

competition, the price consumers pay at the pump in

the UK has been the highest in Europe, due to the much

higher level of duty applied to diesel in the UK.

Following the 2008 price spike, average annual

diesel prices dropped in 2009 quite significantly. Despite

this reduction, the price in real terms still remains higher

than in 2007.

7.2 Average Contribution

to Pump Price

• In2009dutyandVATmadeupalmosttwothirdsofthe pump price of diesel in the UK

• Theaverageretail/ex-refinerypricespreadfor2009was a little over 6 ppl

• Fromthistheoilcompanyandretailermustcoverallsite, distribution and storage expenses

Pre-Tax Pump Prices of Diesel 2009

33

34

35

36

37

38

39

40

41

42

UK Ger Spain I reland France Neth Lux Italy Bel

P e n c e

p e r l i t r e

• 2009sawtheUKonceagainhave the lowest major brand pre-

tax diesel price in the EU

• ThelowUKpre-taxpriceisaresult of strong competition

amongst retailers and an efficient

fuel distribution network

7.3 European Pre-Tax Pump Prices



UK Diesel Pump Price Breakdown

Duty & VAT

0

20

40

60

80

100

120

140

1989 1993 1997 2001 2005 2009

P e n c e

p e r l i t r e

Excl. Duty & VAT

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


25

7 .D i e s el P r i c e s



Pump Prices of Diesel 2009

0

20

40

60

80

100

120

UK Neth Italy Fra Ger Bel Lux Spain Ire

P e n c e

p e r l i t r e

Exc luding duty & VAT Duty and VAT

7.4 European Pump Prices

Fuel Price and Tax Comparison

0

50

100

150

200

1 99 0 1 99 2 1 99 4 1 99 6 1 99 8 2 00 0 2 00 2 2 00 4 2 00 6 2 00 8

1 9 9 0

=

1 0 0

Duty & Vat

Pre Tax Price

7.6 Fuel Price and Tax

Comparison

• Thepre-taxpriceofdieselonlyrecentlyincreasedrelative to 1990 levels, having remained below RPI

adjusted 1990 prices until into 2004

• DutyandVATsteadilyincreasedrelativeto1990levels throughout the 90s, until they were effectively

frozen following protests in September 2000

• Despitetheincreaseinpre-taxpricesin2008,reflecting the rising cost of crude oil, the ratio of pre-

tax prices to duty and VAT is below the 1990 level

Source: Wood Mackenzie/ONS

• ThepumppriceofmajorbranddieselintheUKwasthe highest in Europe in 2009, reflecting the high level

of duty paid on fuel in the UK

• TheUKistheonlymajorEuropeancountrytoapplythe same duty rate to diesel and petrol


Pre-Tax Diesel and Crude Prices

0

10

20

30

40

50

60

1988 1992 1996 2000 2004 2008

P e n c e

p e r l i t r e

Diesel Price

Crude Price

7.5 Pre-Tax Dieseland Crude Prices

• Thepre-taxpriceofdieseliscloselyrelatedtotheprice of crude oil

• The£/$exchangeisakeyfactorinfluencingfuelprices


26

7

D i es el P ri ces



8. Filling Stations

Total Sites

0

5000

10000

15000

20000

25000

30000

35000

40000

1973 1979 1985 1991 1997 2003 2009

N u m b e r o f s i t e s

8.1 Number of Sites

• Attheendof2009therewere8,921fillingstationsin the UK

• Thenumberoffillingstationsisnowaroundaquarter of the 1970 total

• Overthepasttenyears,thenumberofsiteshasbeen falling at a rate of approximately 450 per year

Over the last forty years the number of filling stations

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

1970 to 8,921 at the end of 2009. Recently around 450

filling stations have been closing each year due to strong

competition between fuel retailers and the increasing

costs of compliance with environmental regulations. This

favours large service stations with lower overheads per

litre sold. As a result many smaller filling stations have

become economically unviable.

The only sector that grew in 2009 was large supermarket

sites, which continued to show growth in site numbers,

sales volumes and market share.

8.2 Ownership of Sites

• Manyfillingstationsownedandoperatedbyboth oil companies and independent retailers have closed

due to competition and low returns on investments

• Thenumberofsupermarketsiteshasbeenincreasing

• Independentsitesstillaccountforthemajorityofpetrolstations, accounting for almost 62% of total number

• Inthelastfewyearsseveraloilmajorshaveexited the UK retail sector

Supermarket Sites

0

200

400

600

800

1000

1200

1400

1 99 0 1 99 2 1 99 4 1 99 6 1 99 8 2 00 0 2 00 2 2 00 4 2 00 6 2 00 8


• Attheendof2009therewere1,220 supermarket filling stations

in the UK

• Around14%offillingstationsarenow owned by supermarkets

8.3 Supermarket Sites

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

Source: Energy Institute until 2005; Catalist onwards

Ownership of Sites

0

5000

10000

15000

20000

25000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008


Supermarket Oil Companies Dealer / Independent


27

8 .F i l l i n g S t at i on s



Supermarket Share of Retail Sales

0

10

20

30

40

50

1995 1997 1999 2001 2003 2005 2007 2009

% o

f s a l e s

Petrol

Diesel

8.4 Supermarket Shareof Retail Sales

Access to Filling Stations 2008

0

50

100

150

200

250

300

350

England Wales Scotland Northern Ireland

S i t e s / m i l l i o n p e o p l e

8.6 Access to Filling

Stations

• ThenumberoffillingstationspercapitaishighestinNorthern Ireland

• SeeUKPIAbriefingpaper–“Fuel Supply to Rural

Filling Stations” for more information

Source: ONS / Catalist

• In2009theshareofretailsalesofdieselbysupermarkets had risen from 34 to a little over 35%

respectively whilst petrol slightly declined to 40%

• Justunder40%ofthetotalretailfuelssectorisnowcaptured by supermarkets

Source: DECC (ETS)

Throughput per Site

0

2

4

6

8

10

12

14

1996 1998 2000 2002 2004 2006 2008

M i l l i o n l i t r e s / y e a r

Others Supermarkets

8.5 Throughput per Site

• Theaveragethroughputofallfillingstationshasrisenmarkedly since 1994 to around 4 million litres per year

• Theaveragesupermarketsitethroughputiscurrently just under 12 million litres per year

Source: DECC / Energy Institute / Catalist

28

8

F i l l i ngS t at i ons



Relative Vehicular Emissions of Pollutants - 1990 base

0

20

40

60

80

100

120

Benzene SO2 1,3Butadiene

NOx VOC PM10 CO

% 1

9 9 0 l e v e l s

1995 2000 2008

9. Air Quality

9.1 Vehicular Emissions

• Emissionsofexhaustgaspollutantshavebeensignificantly reduced from 1990 levels

• ThelargestreductionhasbeenmadeforSO2

through the introduction of zero sulphur petrol and

diesel and this reduction is expected to continue

with the move to zero sulphur fuels for off-road

machinery vehicles set for 2011

One of the key drivers for the oil industry is reducing

the environmental impacts 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 almost 25%. In

urban areas, air quality has improved. In rural areas,

most episodes of poor air quality are due to low level

ozone from pan-European sources.

Number of Days when Air Pollution is Moderate or Higher

0

20

40

60

80

100

120

1993 1995 1997 1999 2001 2003 2005 2007 2009p

A v e r a g e n u m b e r o f d a y s

Rural Average Urban Average

9.2 Air Pollution

• Airpollutioninruralandurbanareashasfluctuatedover time but there has been a general long term

decline in high air pollution days at both urban andrural monitoring sites

• Thevariabilityofweatherfromyeartoyearplaysan important role; for example, the hot summers

of 2003 and 2006 resulted in high pollution levels

mainly caused by ozone

• Thecomparativelycoolersummerin2007ensuredair pollution reverted to low levels

Number of Days Exceeding 100 g/m3 of Ozone

0

10

20

30

40

50

1990 1 992 1994 1996 1998 2000 2002 2004 2006 2008

N u m b e r o f d a y s

R ur. Av. U rb . Av. O bj.

• GlobalemissionsofVolatileOrganicCompounds and NOx create a

baseline ozone concentration of

approximately 60 µg/m3 in the

NorthernHemisphere

• Thelonghotsummersin2003and2006 caused an increase in the

number of days which exceeded the

target concentration of 100 µg/m3

• Thenarrowgapbetweenambientlevels in air blowing in from the

Atlantic and the maximum target

levels makes ozone a difficult

pollutant to control, especially as

episodes are usually caused by

ozone from Europe

9.3 Ozone


Source: DEFRA/AEA Energy & Environment


29

9 .A i r Q u al i t y



Range of PM10 Concentrations 2008

0 5 10 15 20 25 30 35 40 45 50 55 60 65

kerbside

urban centre

roadside

urban background

Concentration ( g/m3)

9.7 Range of

PM10 Concentrations

• IntheUK,PM10 concentrations are highest at

kerbside locations next to busy roads in inner cities

Primary Particulate Matter Sources 2008

Road

transport

18%

Residential

14%

Other

68%

9.4 Primary ParticulateMatter

Annual Mean PM10 Concentrations at Urban Sites

Objective (by end 2010)

2008200620042002200019981996199419920

10

20

30

40

50

60

C o n c e n t r a t i o n ( g / m 3 )

Lowest site value

Highest site

value

UK Average

9.6 Annual Average

PM10 Concentrations

• UKaveragePM10 concentrations at urban sites fell so

considerably that the 2010 objective, of an average

20µg/m3, was reached over two years ahead of

schedule


• In2007thecombustionofroadfuelscontributed18%of the UK’s primary emissions of particulate matter

• Theresidentialsectorproduced14%oftheemissions,with the rest produced by other sources including

industry and power generation

• AmbientlevelsofPM10 include fine particles from

primary (around a third), secondary and other sources


Road Transport PM10 Emissions

0

10

20

30

40

50

197 2 19 76 1 980 1984 1988 1 992 1996 200 0 20 04 2 008

P M 1 0 e m i s s i o n s ( k t o n n e s )

9.5 Road Transport PM10 Emissions

• Emissionsofparticulatematter(PM10) from road

transport peaked in 1994 at 44,000 tonnes

• Sincethenemissionshavefallenbyover40%due to tighter standards for vehicular emissions and lower

sulphur content of fuels

• However,thisisnothelpedbytheincreaseddieselisation of the car park, since PM10 emissions

are higher from diesel than petrol


9

A irQ

alit

30



Range of NO2 Concentrations 2008

0 10 20 30 40 50 60 70 80 90 100

roadside

urban centre

urban background

suburban

Concentration ( g/m3)

9.11 Range of

NO2 Concentrations

• SomemonitoringstationsintheUKstillrecordannualaverage concentrations that do not meet the UK air

quality target of 40 µg/m3

• NO2 is a greater problem in large cities, near busy roads

and around airports

Sources of NOx 2008

Road transport

32%

Energy

industries

25%

Other

43%

9.8 Sources of NOx

Annual Mean NO2 Concentrations at Urban Sites

Objective

(by end 2005)

0

20

40

60

80

100

120

140

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

C o n c e n

t r a t i o n ( g / m 3 ) Highest site value

Average

Lowest site value

9.10 Annual Average

NO2 Concentrations

• Nitrogendioxideislargelyformedintheatmosphere from emissions of NOx

• AnnualNO2 concentrations in the UK have fallen

by 45% since 1989

• Thesereductionswereachievedbyreducedemissions from power generation, industry and

road transport


• Nitrogenoxides(NOx) are mainly formed as a

by-product from the combustion of fossil fuels

• 25%oftheUK’stotalNOx emissions in 2007 were

from energy industries

• Thelargestsinglesourceofemissionswasroadtransport, producing 32% of the total

• TighterEUexhaustemissionstandardswillreducevehicle NOx emissions


Road Transport NOx Emissions

0

200

400

600

800

1000

1200

19 72 1 976 19 80 1 98 4 1 98 8 1 99 2 1 996 2 00 0 2 004 2 00 8

V e h i c l e e m i s s i o n s ( k t o n n e s )

9.9 Road TransportNOx Emissions

• RoadtransportNOx emissions have fallen by

almost 60% from the 1990 peak

• Thesereductionsarisefromtheuseofoxidationcatalysts (diesel vehicles) and catalytic converters

(petrol vehicles) which have been enabled by lower

sulphur in diesel and unleaded petrol



31




CO Limit Exceedences

0

25

50

75

100

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

P e r i o d s e x c e e

d i n g 1 0 m g / m 3

UK Average Highest site value

9.15 CO Limit

Exceedences

• Since1990allDECCreportingstationshaverecorded CO concentrations below national and

EU health objective levels

Sources of Benzene 2008

Residential

44%

Other 15%

Manufacturing7%

Road Transport 13%

Fugitive Emissions

from Fuels 9%

9.12 Sources of Benzene

Sources of CO 2008

Residential13%

Other 32%

Roadtransport55%

9.14 Sources of CO

• Carbonmonoxideisformedfromtheincompletecombustion of fossil fuels

• In2008roadtransportcontributed55% of the UK’s carbon monoxide emissions

• Theresidentialsectorproduced13%ofemissions


• In2008roadtransportcontributed13%oftheUK’sbenzene emissions

• StageIIVapourRecoveryisbeingfittedtolargepetrol stations

• Benzeneisnaturallypresentincrudeoilandisalsoformed during refining

• Mostbenzeneisremovedtocomplywithspecifications


Road Transport Benzene Emissions

0

10

20

30

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

B e n z e n e e m i s s i o n s ( k t o n n e s )

9.13 Road TransportBenzene Emissions

• Emissionsofbenzenefromroadtransporthavereduced significantly since 1990 due to the

introduction of exhaust after-treatment technology

enabled by unleaded petrol

• In2000emissionsofbenzenewerefurtherreducedfollowing the lowering of the benzene and aromatics

limits in petrol


9

A i rQual i t y

32



1,3-Butadiene Concentration 2007

0.0

0.5

1.0

1.5

2.0

2.5

Glasgow

Kerbside

London

Marylebone

Road

Cardiff Centre London Eltham Harwell

M a x i m

u m r

u n n i n g a n n u a l m e a n ( µ g / m 3 )

Target

Road Transport Emissions of VOCs

0

250

500

750

1000

1 97 2 1 97 6 1 980 19 84 1 98 8 1 99 2 1 99 6 20 00 2 00 4 2 00 8

V O C

e m i s s i o n s ( k t o n n e s )

9.19 Road Transport

Emissions of VOCs

• RoadtransportemissionsofVOCshavedramaticallyreduced since 1989 falling by over 90%

• Thisreductionhasresultedfromtheintroductionofcatalytic converters on cars and the switch to more

diesel vehicles

Road Transport 1,3-Butadiene Emissions

0

2

4

6

8

10

14

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

V e h i c l e e m i s s i o n s ( k t o n n e s )

9.16 Road Transport 1,3-Butadiene Emissions

Sources of VOCs 2008

Road transport

14%

Others

19%

Residential

6%

Solvent and

other product

use

41%

Fugitiveemissions from

fuels

20%

9.18 Sources of VOCs

• In2008roadtransportcontributed14%oftheUK’svolatile organic compound emissions

• Themainsourceofemissionsisfromtheuseofsolvents and paints

• Refining,storageanddistributionofoilproducts

were 7% of the total emissions


• Emissionsof1,3-butadienehavereducedbyalmost90% since 1990

• Furtherreductionsareexpectedasagreaterproportion of vehicles meet new car exhaust

emissions standards


9.17 1,3-ButadieneConcentration

• In2008,allDEFRA/AEAairqualitymonitoringstations for 1,3-butadiene in the UK reported

maximum running annual averages far below the

maximum permitted level of 2.25 µg/m3




33



Greenhouse Gases and Commitments

0.00

200.00

400.00

600.00

800.00

1000.00

1990 1994 1998 2002 2006 2010 2014 2018

E m i s s i o n s ( m t C O 2 e / y e a r )

B as ke t o f g re en ho us e ga se s C ar bo n di ox id e

Carbon budgets

Kyoto target by 2008-2012

10. Greenhouse Gases

10.1 Greenhouse Gases

and Commitments

• TheUKisontracktomeettheKyotoprotocol’srequirement to deliver a 12.5% reduction in greenhouse

gases compared to 1990 levels by 2012

• The2009UKLowCarbonTransitionPlansettoreduce 34% of greenhouse gas emissions by 2020

relative to 1990.

• Emissionsin2010havealreadybeenreduced by 21%

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

risen by a rate well below the 14% increase in vehicle

kilometres over the last decade. Improvements in vehicle

efficiencies enabled in part by cleaner fuels are expected

to reduce emissions in the future.

Sources of Carbon Dioxide 2008

Other 8%

Residential15%

Energy Supply39%

Business16%

Road Transport22%

10.2 Source of Carbon

Dioxide

• Roadtransportproducesapproximately22%oftheUK’s CO2 emissions

• Theenergysupplyindustry,alongwiththeresidentialand business sectors, are also major sources of CO2

• Carbondioxideaccountedforanestimated85%ofthe UK’s man-made greenhouse gas emissions in

2008

Road Transport CO2 Emissions

0

20

40

60

80

100

120

140

1972 1978 1984 1990 1996 2002 2008

E m i s s i o n s ( m t C O 2 )

10.3 Road Transport CO2 Emissions

Source: DECC Source: DECC/AEA Energy & Environment

Source: DECC/AEA Energy & Environment

• Since1990,emissionsfromroad

transport have risen at a much lowerrate than vehicle mileage

• Thiscanbeattributedtotheuseofmore efficient vehicle technologies

enabled by cleaner fuels, and an

increased proportion of diesel vehicles

• TheCO2 levels from fuel use will

continue to reduce with increasing use

of biofuels as required by the RTFO

1 0

Greenh ous eGa

s es

34



Sources of Methane 2008

Agriculture

37.59%

Landfill41.45%

Other

6.10%

Coal Mines

5.71%

Road Transport

0.26%

Gas Leakage

8.89%

Sources of N2O 2008

Industrialprocesses

7%Road transport

3%

Agriculture77%

Other 13%

10.7 Sources of N2O

• In2008roadtransportwasresponsibleforaround3%, down from 4% the previous year, of the UK’s

total emissions of nitrous oxide, N2O

• Agricultureisthemainsourceaccountingforovertwo thirds of emissions, mainly from agricultural soils

• Weightedbyglobalwarmingpotential,nitrousoxideemissions accounted for about 5% of the UK’s

man-made greenhouse gas emissions in 2008

New Car Fleet Average CO2 Emissions

140

150

160

170

180

190

200

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

C O 2

g / k m

EU ave rage UK Business UK Pr iva te UK Aver age

10.4 CO2 from New Cars

Road Transport Emissions of Methane

0

5

10

15

20

25

30

35

1972 1978 1984 1990 1996 2002 2008

E m

i s s i o n s ( k t o n n e s )

10.6 Emissions of Methane

• Despitethelowlevelofemissions,reductionsarestill being achieved as a result of the introduction

of exhaust after-treatment technologies

• Emissionsin2008were80%lowerthanthepeakaround 1990

Source: DECC/AEA Energy & Environment Source: DECC/AEA Energy & Environment

• UKaveragenewcarCO2 emissions have fallen every

year on record

• FutureemissionsofCO2 from road transport will

continue to be lowered by further improvements in

vehicle efficiency

• AstheUK’soldervehiclesarereplacedandmore diesel cars purchased, the fleet efficiency will improve

• Thecurrenttrendtosmallervehicleswillalso contribute to lower emissions

Source: SMMT/European Commission

10.5 Sources of Methane

• Roadtransportisnotamajorcontributortomethane emissions, producing less than 0.3%

of the UK total in 2008

Source: DECC/AEA Energy & Environment

1 0 . Gr e enh o u s e G a

s e s


35



RIDDOR >3 Day Injuries 2007/08

0

200

400

600

800

1000

Extraction& Utility

AllManuftg

All UK AllService

Ref Cont

MktEmpl

Ref Empl

> 3 D a y i n j u r i e s / 1 0 0 , 0

0 0 w o r k e r s

11. Health and Safety

11.1 RIDDOR >3 Day

Injuries by Sector

• Significantlyfewerinjuries(RIDDOR>3Day)occurat refineries than in the manufacturing sector as a

whole

• Injuriesindownstreamoilmarketingarelowerthanthe UK average for other service sector employees

The refining and marketing industry continued to

maintain very high standards of occupational safety

in 2008. 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 safety performance with European

competitors, having consistently fewer reported injuries

amongst both employees and contractors. 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.

RIDDOR >3 Day Injuries

0

100

200

300

400

500

600

Mkt Employ ee s Refy Employ ee s Re fy Con tractors

> 3 D a y i n j u r i e s / 1 0 0 , 0

0 0 w o r k e r s

2000-01 2001-02 2002-03

2003-04 2004-05 2005-06

2006-07 2007-08

11.2 RIDDOR >3 Day Injuries

by Category of Worker

• In2008,thefrequencyofinjuries(RIDDOR>3Day)fell for refinery contractors to their lowest levels

recorded

• Althoughmarketingandrefiningemployeeinjuriesincreased over the last year, they have both stayed

well below their peak range

Refining Injuries

0

50

100

150

200

250

Medical Treatment

Cases

Restricted Work Injuries Lost Work Injuries

R e p o r t e d i n c i d e n t s

200 0 200 1 200 2 2 003 2 004

200 5 200 6 200 7 2 008

• Injuriesreportedatrefineriesin2008remain around the very low levels

seen over the past few years

• Thisreflectsacontinuedhighlevelof attention to safe practices

11.3 Refining Injuries

Source: UKPIA/HSE Source: UKPIA

Source: UKPIA

1 1

H

lt h

d S

f

t

36



Refining Lost Work Injury Frequency

0

1

2

3

4

5

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

L o s t w o r k i n j u r i e s / m i l l i o n h r s

Contractor

Employee

11.4 Refining Lost WorkInjury Frequency

Marketing Lost Work Injury Frequency

0

2

4

6

8

10

2000 2001 2002 2003 2004 2005 2006 2007 2008


Contractor

Employee

11.6 Marketing Lost Work

Injury Frequency

• Lostworkinjuriesamongstmarketingcontractors and employees have in recent years converged,

though with a slight increase in 2008, remain around

the very low levels seen over the past few years

• The‘ContractorSafetyPassportScheme’for forecourt contractors introduced by UKPIA in 1999

helped achieve this

Source: UKPIA

• ‘Contractor’lostworkinjuriesatrefinerieshavereduced in frequency since 1997 reaching the lowest

ever recorded levels. Recorded levels for contractors

are now almost as low as those of refinery employees

• Theintroductionofrefinery‘ContractorSafetyPassports’ has contributed to this fall over the

last decade

Source: UKPIA

Refining Lost Work Injuries

0

2

4

6

8

2001 02 03 04 05 06 07 08 2001 02 03 04 05 06 07 08

UKPIA CONCAWE


Ref Staff Ref Contr

11.5 Refining Lost WorkInjuries

• ComparisonwithEuropeansafetydatafromCONCAWE indicates that UK refinery employees are

less likely to suffer a lost work injury than European

counterparts

• CONCAWEistheEuropeanoilindustry’sassociationfor environment, health and safety

Source: UKPIA / CONCAWE

1 1 .H e al t h an d S af e

t y


37



Crime Related Injuries incidents per quarter per 100 sites

0

1

1

2

2

3

3

4

2001q4 2002 q4 2003 q4 2004 q4 2005 q4 2006 q4 2007 q4 2008 Q4 2009 q4

Major Other

12.1 Crime Related

Injuries

• Thepreviouslyrisingtrendincrimerelatedinjurieshas been largely reversed since 2003

• MajorinjuriesarereportableunderRIDDOR

• Themajorityofreportedinjuriesaresufferedbystaff

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 around £20

million in 2009. Its members are the oil companies BP,

Shell, Chevron and Total, as well as members of the

Retail Motor Industry Federation – Petrol. BOSS works

closely with local police forces, the Home Ofce 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

1,800 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

Type of Weapon incidents per quarter per 100 sites

0

1

2

3

2001q4 2002 q4 2003 q4 2004 q4 2005 q4 2006 q4 2007 q4 2008 Q4 2009 q4

Gun Knife Other

12.2 Types of Weapon

• Thesubstantialreductionofreportingofincidentsinvolving weapons in 2008 was maintained in 2009

Source: BOSS Source: BOSS

12. Service Station Crime

1 2

S erv i ceS t at i on

C ri me

38



Physical Violence & Robbery incidents per quarter per 100 sites

0

1

2

3

4

5

6

7

2001q4 2002 q4 2003 q4 2004 q4 2005 q4 2006 q4 2007 q4 2008 q4 2009 q4

Physical violence Robbery

12.3 Physical Violenceand Robbery

• Robberyistheftwithactualorthreatofphysicalviolence

• Physicalviolenceincreasedin2009comparedwith2008 and continues to be a cause of concern

Source: BOSS

Drive off & No Means to Pay Losses Loss per quarter £000 per 100 sites

0

10

20

30

40

50

60

70

80

90

100

2005 q1 2005 q3 2006 q1 2006 q3 2007 q1 2007 q3 2008 q1 2008 q3 2009 q1 2009 q3

12.5 Drive-off and No

Means to Pay Losses

• Drivingoffwithoutpayingforfuelremainsthemajorsource of loss at fuel sites

• Motoristswhofillupwithfuelbuthavenomeansto pay and who do not clear the resulting debt constitute

the second highest source of loss

• Theimprovementinthesecondhalfof2008wasassisted by falling fuel prices

• Thetrendreversedin2009butreportedlosses were lower than in previous years

Estimated Industry Losses £million per year

0

5

10

15

20

25

30

35

2001 2002 2003 2004 2005 2006 2007 2008 2009

Drive Off No Means of Payment Other

12.6 Estimated Injury

Losses

• Industrylossesareestimatedbyextrapolatingdatacollected by BOSS

• ‘Nomeanstopay’losseswerecollectedinconsistently prior to 2004

• Lossesexcludefraud,creditcardlosses,shoptheft,property damage and consequential losses such as

staff time following violent incidents

Source: BOSS Source: BOSS

1 2 . S er v i c e S t at i on

C r i m e

£ loss per quarter per 100 non 24 hr sites Burglary Losses

0

5000

10000

15000

20000

25000

2006 q2 2006 q4 2007 q2 2007 q4 2008 q2 2008 q4 2009 q2 2009 q4

12.4 Burglary Losses

• Burglariesgenerallytakeplacewhenservicestations are closed so the majority occur on

non-24 hour sites

• Thechartrelateslossestonon-24hoursites

• Burglarylossesexcludepropertydamage

• Lossesin2009fellsubstantiallycompared with 2008

Source: BOSS


39



UNITED KINGDOMUnited Kingdom Petroleum Industry Association

Quality House, Quality Court,

Chancery Lane, London WC2A 1HP

Tel: 0207 269 7600

Email: [email protected]

Website: www.ukpia.com

Ukpia Statistical Review 2010

Documents

Transcript of Ukpia Statistical Review 2010