In flow: The industry has faced pressure, whilst biofuel will be a prominent future trend

Petroleum refiners have faced tough market conditions over the past five years. Most UK refineries are geared towards petrol production and were negatively affected by declining demand for petrol as this led to oversupply. At the same time, crude oil prices have been volatile, falling sharply throughout much of the period, which further damaged industry revenue. Some refineries closed, while others had to work hard to find markets for their excess petrol. A number of refineries altered their production focus in favour of diesel as the new primary fuel. Diesel is more fuel-efficient than petrol and until recently was considered to be more environmentally friendly. Industry revenue is expected to fall at a compound annual rate of 13.2%...read more.

Industry Statistics & Market Size
Revenue
£27.9bn
Annual Growth 13-18
-13.2%
Forecast Growth 18-23
Profit
Employment
7,924
Businesses
12

Industry Threats & Opportunities

  • Revenue has been hit hard by declining oil prices and a number of refineries have closed
  • UK petrol production has fallen markedly as operators have responded to changing demand
  • Biofuel has notable growth potential, although it currently accounts for a small share of production
  • Industry Report - Industry Key Buyers Chapter

    The Petroleum Refining industry has a high level of concentration, with the top four companies accounting for 64.1% of the market. In the United Kingdom, there are only 6 major refineries in operation that produce the vast majority of industry output, with two having closed in recent years. The Coryton refinery shut its doors in 2012, with the Milford Haven refinery following suit in 2014. There is expected to be a small number of refineries specialising in bitumen and biofuel production.The nature of petroleum refining is complex, involving a great deal of specialised machinery and processes, along with a requirement for product knowledge. This drives concentration, as firms see the benefit of united operations and a strong source of investment capital...purchase to read more.

    Additional Insights for the Petroleum Refining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petroleum Refining Industry are

  • Economies of scale
  • Must comply with government regulations
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Demand from petrol stations in the Petroleum Refining industry impact industry performance..

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    What's in this report

    What is the Petroleum Refining Industry?

    Petroleum refining is the process of turning crude oil into more usable products such as petrol. The major oil refineries manufacture petrol, diesel, jet fuel, gas oil and petroleum gas. The refining process also leads to the production of by-products such as naphtha, which can be used as a solvent. Companies in this industry also manufacture a range of petroleum-based products such as Vaseline, petroleum jelly, paraffin wax and white spirit.

    Industry Products
  • Petrol
  • Diesel
  • Jet fuel
  • Gas oil
  • Fuel oil
  • LPG
  • Biofuels
  • Industry Activities
  • Petrol
  • Diesel
  • Jet fuel
  • Liquefied petroleum gas
  • Fuel oil
  • petroleum-based products such as Vaseline
  • Biofuel
  • refinery gases such as ethane, propane and butane
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Demand from petrol stations
  • Real effective exchange rate
  • Total number of registered motor vehicles
  • Average age of motor vehicles

  • Current Performance
  • Fuelling revenue
  • Margins under pressure
  • Dynamic demand
  • A greener future
  • Chart: Revenue Growth

  • Industry Outlook
  • Supply and demand converge
  • Green fuels
  • Fine margins
  • Table: Petroleum Refining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petroleum Refining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fuel Wholesaling
  • Petrol Stations
  • Scheduled Passenger Air Transport
  • Freight Air Transport

  • Key Selling Industries
  • Crude Petroleum & Natural Gas Extraction

  • Products & Services
  • Diesel
  • Petrol
  • Jet fuel
  • Fuel oil
  • Gas oil
  • Other
  • Biofuels
  • LPG
  • Chart: Petroleum Refining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Petrol stations
  • Commercial transport
  • Other
  • Heating
  • Aviation
  • Chart: Major Market Segmentation for the Petroleum Refining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesExcise duty and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Petroleum Refining

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petroleum Refining Industry

  • Industry Globalization
    Phillips 66 Limited, Valero Energy Limited, Essar Oil UK Limited, Esso Petroleum Company Limited, Total Lindsey Oil Refinery Limited,
  • Table: Phillips 66 Limited - financial performance
  • Table: Valero Energy Limited - financial performance
  • Table: Essar Oil UK Limited - financial performance
  • Table: Esso Petroleum Company Limited - financial performance
  • Table: Total Lindsey Oil Refinery Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petroleum Refining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Petroleum Refining Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Biofuels
  • Typically refers to fuels that are made from renewable resources such as plants and food.
  • Cracking
  • The use of heat to break down large chemical components into smaller, lighter ones.
  • Distillation
  • The process of using a high temperature to separate crude oil into vapour and liquids.
  • Fuel Oil
  • A petroleum residue used for power generation or to create heat through a furnace.
  • Lpg
  • Liquefied petroleum gas, also known as autogas, is used to run LPG cars.
  • Naphtha
  • Obtained through the petroleum distillation process and is a flammable liquid.
  • Petroleum Gases
  • Includes propane, butane or a mixture of both, which is often sold as liquefied petroleum gas.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Petroleum Refining market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Petroleum Refining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Petroleum Refining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Petroleum Refining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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