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Petroleum

The UK petroleum industry, also referred to as downstream, consists of over 200 companies involved in the refining, distribution and marketing of petroleum products. They range from large, multinational oil companies, supermarket chains and independent retail groups, through to the independent retailer with a single site.

The main product of the downstream industry is transport fuel. This market is split into commercial and retail. The commercial market includes power generators, industrial, transport and agriculture customers, independent fuel distributors, the government and its agencies, public services and the military. The retail market covers fuels mainly sold from high street filling stations. The downstream petroleum industry employs over 150,000 people directly, and several thousands of contract workers. The workforce is mainly employed in stabilising, refining and manufacturing, and in forecourt retailing activities.

Environmental concerns

Increased public concerns about environmental disasters and the effects of fossil fuels on global warming have sharpened the industry’s focus on environmental and safety issues. As the demand for energy grows so do concerns about the impact on the environment.

The UKOOA Sustainability Strategy Update and Progress Report 2005 details the industry’s progress in developing and implementing a sustainability strategy, and the Offshore Oil and Pollution Prevention and Control Regulations 2005, indicate that protection of the environment is high on the agenda of all oil companies. Environmental management now forms a key part of the decision-making process.

Recent improvements include:

• use of ultrasonic leak detection to reduce gas flare losses;
• introduction of more thermally efficient power plants on platforms;
• installation of simultaneous steam and electricity production facilities in refineries to reduce carbon dioxide emissions;
• work with conservation organisations to preserve habitats that will allow species to flourish;
• investments in new technology to maximise output from existing fields.

The offshore industry produces 80% of the UK’s primary energy. It also generates 3% of the country’s carbon dioxide and methane emissions