The following is an extract from a statement made by Michael Fallon, MP, with regards to the conclusions drawn by a recent UK government review looking in to the country’s refining and fuel import sectors.
‘As we progress toward a low carbon economy in the UK, oil products are, and will continue to be, crucial to our economy and to consumers in the UK for years to come. The review was designed to assess the respective contributions that domestic production and imports make to resilient fuel supplies. It sought to understand better the global context and challenges facing the oil supply sector, and the impact that market distortions and the regulatory framework have on competitiveness. It also considered what role the government should play in supporting the sector.
‘Given the recent closures of refineries in the UK, the review had a particular focus on the refining sector in the UK but it also considered the midstream sector more broadly, including the role of the imports sector and the benefits it brings.
‘The review concluded that resilience and security of supply in the UK is supported by retaining a mix of domestic refining and imported product. This is in line with the government’s energy security of supply strategy which recognises the benefits of supply diversity. Global commercial factors will continue to affect the refining market in the UK and the EU more broadly, and further closures across the continent are likely in future. A package of actions has been developed by government, which taken together, could help improve the operating environment for the refining and imports sectors.
‘These measures include the setting up of a new joint government and industry Midstream Oil Task Force. This will provide a strategic and collaborative way of working and will deliver a number of the actions from the review. The task force will be independently chaired and draw its members from across the midstream oil sector.’
Adapted from statement by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/09042014/uk_downstream_oil_sector_review/