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 Analysis Chapter
Petroleum refiners have faced extremely challenging market conditions over the five years through 2016-17, including oil price volatility, falling demand, declining domestic crude oil feedstock, tighter environmental standards and thinning margins. Some refineries have closed altogether and others have cut capacity. Many such challenges have been long-term trends, with refineries in the United Kingdom closing since the 1980s on account of lower petrol demand and the shift towards diesel vehicles. More recently, industry operators have struggled to find buyers for refined petroleum fuel, which has damaged profit.
Just prior to the beginning of the five-year period through 2016-17 the industry benefited from a jump in oil prices and higher demand. Mor.. purchase to read more