Refining margins are tight – we all know that. With spot prices falling things will ease a bit, but it doesn’t help when politicians decide that Big Energy is a handy cash cow in times of austerity.
This report outlines how EU energy policy is hitting refiners in Europe.
EU green energy law added 40 euro cents a barrel to costs for Europe’s refineries, but the decisive factor in undermining their competitiveness was a steep rise in energy costs, preliminary European Commission research has found.
And get this …
Energy costs in the EU rose four-fold in 2000 through 2012, compared with a doubling elsewhere in the world, where prices overall were held back by the rise in U.S. shale production.
So when politicians tell you that the EU is good for business, or that they will freeze prices as a solution to the problem, be very suspicious.