Air quality costs associated with the EU Industrial Emissions Directive soon stand to affect the oil refinery industry in Europe, it has been reported.
These charges, which will exclusively affect oil refiners in the continent, could further erode their competitiveness in a global market, according to Reuters.
Despite an anticipated bounce in fuel demand next year, it is thought that many European refiners will be forced to cut runs or shut down because of fierce competition in traditional export markets.
Mark Gainsborough, executive vice president of downstream strategy at Royal Dutch Shell, a global group of energy and petrochemicals companies, said that the east coast of the US is a competitive battleground between national refineries, European refineries and others further afield.
"Europe is not the place to have an out-and-out merchant refinery," he stated.
International Energy Agency analyst David Martin added that when demand for oil bounces back, small, unsophisticated European refiners are not going to be among those that benefit.
Written by Joseph Hutton
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