Refining still tough in Europe

 

“EU green energy law added 47 euro cents a barrel to costs for Europe’s refineries, according to European Commission research made public on Monday.”

That’s the headline from this article.

This is a tough pill for the EU to swallow, so their scientific unit is forced to try and temper this with other arguments;

“The cost impact is visible. It’s significant, but there are other factors,” Ruslan Lukach, a scientific policy officer from the Joint Research Centre (JRC), the European Commission’s scientific unit, told a refining industry seminar.

The Commission itself tries to justify;

“Between 2000 and 2012, the Commission has said EU energy costs rose roughly four-fold, compared with a doubling elsewhere in the world, where prices were held back by the rise in shale production.”

… what he means is prices in Europe have rocketed due to EU environmental taxes, a head-long rush into uneconomic renewables needing subsidies to make them viable, a drive to close coal fired power station that produce some of the cheapest energy in the world, and paralysis of the EU shale gas industry due to in-fighting, pressure from lobby groups and vested interests arguing over whether it is safe or not.

But the Oil industry won’t be fooled;

Industry says the impact of regulatory costs in the European Union will become much more marked.

Between 2010 and 2020, it anticipates EU law will generate additional costs of $2.50 to $4 per barrel of oil processed, which could be the difference between a refinery continuing to operate and being forced to close, Murano said.

So the EU claims to be worried about the security of supply of energy and over-reliance on gas from Russia but at the same time continues to drive the European refining industry to the brink of collapse.

Meanwhile, as I reported in my previous post, refiners in places like South Korea are running at near-record highs.

Just another reason why the UK would be #BetterOffOut.

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