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Petroleum Refining in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Petroleum Refining Market Research Report | SIC C19.201 | Nov 2016

Volatile mixture: Heavily fluctuating oil prices have affected industry revenue and margins

IBISWorld’s Petroleum Refining market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Essar Energy plc Essar Energy plc market share
Esso Petroleum Company Limited Esso Petroleum Company Limited market share
Phillips 66 Limited Phillips 66 Limited market share
Total UK Ltd Total UK Ltd market share
Valero Energy Limited Valero Energy Limited market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Industry Threats & Opportunities
  • Exceedingly tough market conditions have caused significant industry revenue contraction
  • Falling demand for petrol has led to an oversupply in the domestic market
  • The growth of biofuel production is anticipated to remain constrained in the short term
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Industry Analysis & Industry Trends

Petroleum refiners have faced tough market conditions over the past five years. Most UK refineries are geared towards petrol production. Declining demand for petrol over the past five years led to an oversupply in the industry.. At the same time, crude oil prices were volatile, falling sharply throughout much of the period, which further damaged industry revenue. Some refineries closed, while others had to work hard to find markets for their excess petrol. A number of refineries are changing their production focus in favour of diesel as the new primary fuel. Diesel is more fuel efficient than petrol and is often considered to be more environmentally friendly, and these dual motivations are reshaping the industry. Industry revenue is expected to fall at a compound annual rate of 15.1%... purchase to read more

Industry Report - Industry Investment Chapter

The industry has a high level of capital intensity. For every £1.00 spent on capital, approximately 54p is spent on wages. A high degree of capital intensity is not surprising, given ongoing capital spending requirements to upgrade refineries in order to improve efficiency and meet new government standards. Establishment of new sites is particularly capital intensive. Nonetheless, labour is also important in this industry, and although the proportion of revenue spent on wages, there are a large number of contractors that work in the industry, the costs of which are not reflected in wages. Skilled employees are needed to operate petroleum refineries and to complete product research and marketing functions.

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Additional Insights for the Petroleum Refining Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petroleum Refining Industry are

  • Economies of scale
  • Must comply with government regulations
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Demand from petrol stations in the Petroleum Refining industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Petroleum Refining Industry?

    Petroleum refining is the process of turning crude oil into more usable products such as petrol. The major oil refineries manufacture petrol, diesel, jet fuel, gas oil and petroleum gas. The refining process also leads to the production of by-products such as naphtha, which can be used as a solvent. Companies in this industry also manufacture a wide range of petroleum-based products such as Vaseline, petroleum jelly, paraffin wax and white spirit.

    Industry Products
    PetrolDieselJet fuelGas oilFuel oilLPGBiofuels
    Industry Activities
    PetrolDieselJet fuelLiquefied petroleum gasFuel oilpetroleum-based products such as VaselineBiofuelrefinery gases such as ethane, propane and butane

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Demand from petrol stations
  • Real effective exchange rate
  • Total number of registered motor vehicles
  • Average age of motor vehicles
  • Current Performance
  • Slipping revenue
  • Dynamic demand
  • Margins under pressure
  • A greener future
  • Chart: Revenue Growth
  • Industry Outlook
  • Renewed vigour
  • Fine margins
  • Table: Petroleum Refining Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petroleum Refining Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Fuel Wholesaling
  • Petrol Stations
  • Scheduled Passenger Air Transport
  • Freight Air Transport
  • Key Selling Industries
  • Crude Petroleum & Natural Gas Extraction
  • Products & Services
  • Diesel
  • Petrol
  • Jet fuel
  • Fuel oil
  • Gas oil
  • Other
  • Biofuels
  • LPG
  • Chart: Petroleum Refining Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Exports
  • Petrol stations
  • Commercial transport
  • Other
  • Heating
  • Aviation
  • Chart: Major Market Segmentation for the Petroleum Refining Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Excise duty and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Petroleum Refining
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petroleum Refining Industry
  • Industry Globalization
    Major Companies
    Esso Petroleum Company Limited
    Essar Oil UK Limited
    Phillips 66 Limited
    Valero Energy Limited
    Total Lindsey Oil Refinery Limited
  • Table: Esso Petroleum Company Limited - financial performance
  • Table: Essar Oil UK Limited - financial performance
  • Table: Phillips 66 Limited - financial performance
  • Table: Valero Energy Limited - financial performance
  • Table: Total Lindsey Oil Refinery Limited - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Refining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Petroleum Refining Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
  • Typically refers to fuels that are made from renewable resources such as plants and food.
  • Cracking
  • The use of heat to break down large chemical components into smaller, lighter ones.
  • Distillation
  • The process of using a high temperature to separate crude oil into vapour and liquids.
  • Fuel Oil
  • A petroleum residue used for power generation or to create heat through a furnace.
  • Lpg
  • Liquefied petroleum gas, also known as autogas, is used to run LPG cars.
  • Naphtha
  • Obtained through the petroleum distillation process and is a flammable liquid.
  • Petroleum Gases
  • Includes propane, butane or a mixture of both, which is often sold as liquefied petroleum gas.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Petroleum Refining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Petroleum Refining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Petroleum Refining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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