Petroleum industry

The main products of the downstream sector are transport fuels (aviation fuel, diesel and unleaded petrol) which can amount to 60% of a refinery output. The market for transport fuels in the UK amounts to about 50 million tonnes per year and this is split into commercial and retail markets as well as aviation. The commercial market includes industrial transport (cars, trucks, buses, and trains), marine (marine diesel for ships) and agriculture (tractors etc), as well as Government; which includes public services and military vehicles.

The industry is creating new “greener” fuels such as biodiesel/ bioethanol made from renewable sources such as vegetable oils/ wheat, to reduce harm to the environment. The UK Petroleum Industry Association (UKPIA) has said that by 2009 vehicles will become even cleaner and less polluting. Hybrid vehicles are likely to become more common, particularly in urban areas. (A hybrid car is a vehicle which operates using a mix of petrol and electric power and causes less pollution).

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Industry details

Includes:

  • Stabilising, refining and manufacturing
  • Storage, blending and distribution
  • Retail sale of automotive fuel

Statistics:

  • The UK Refineries are ranked 17th (out of 26) in Europe for competitive performance
  • The Petroleum industry accounts for 0.5% of UK GVA
  • Number of Refineries: 9
  • Refinery throughput (2006): 82 million tonnes
  • Refining Capacity: 1.8 million barrels per day (4th largest in Western Europe)
  • Gross sales (2005): £69 billion
  • Fuel sales (2006): 50 billion litres
  • Petrol sales (2006) 50%: Diesel sales (2006) 50%
  • UK filling stations (2006): 9382 (annual reduction c.600 sites)
  • Supermarket filling stations (2006: 1191 (13% share of filling stations)
  • Fuel use by road passenger vehicles has increased by 72% since 1970
  • Average CO2 emissions from new cars are 11% lower than in 1995

The Skills Gap


There is an over supply of people qualified at S/NVQ level 1 and below compared to the number of jobs at that level in the Petroleum Industry.

Elementary occupations only account for 5% of the overall workforce.

There is a 20% SURPLUS of people qualified at S/NVQ level 1.

There is an under supply of people qualified to S/NVQ level 2 and 3 compared to the proportion of jobs at those levels in the Petroleum Industry.

Level 2 and level 3 occupations account for 54% of the Petroleum Industry.

There is a 20% DEFICIT of people qualified at S/NVQ levels 2 and 3.