Who will survive oil refinery competition from the Middle East?

Thursday, March 1, 2012

Indian Oil refinery Essar has put forth the notion that the UK may well see refinery closures in the near future, due to stiff competition. While bigger establishments in Cheshire may be able to handle the tough economic market, rivals may find the profitability balance too difficult to achieve.

Following a collapse of a refinery in Coryton, which supplied 20% of the south-east's fuel, competition presented by the middle-east and India has gained more momentum. The Petroplus owned site went into administration in January, putting over 900 jobs on the line.

Chief executive at Essar stated: 'There is some sort of structural change in the refining industry globally. Refineries that were small-sized or low-complexity are being replaced by large, complex refineries mostly built in the Asia-Pacific region … Those refineries that are not economically sustainable or of low complexity will find it much harder to survive in this market…We believe that there has to be some shake-up in the European refining industry and that uneconomic capacity will move out."

So if this 'shake-up' never materialises, what will this mean for oil and gas contract jobs? Many of those working in smaller refineries may be questioning their current vacancies. While larger companies are seemingly taking over, oil and gas contractors may have to look further afield for future job prospects.

Contribution by
from Contract Jobs

            » More articles by this author           » Write for us

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

Related News

Join 70,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Your details are never shared or sold. We hate spam too.

» More Jobs       » Upload a free Job       » Upload your CV

  • Development Geologist

    Salary £80000 - £120000 per annum   |   Science (other)  |  Trondheim, Norway

  • Draughter

    Salary £25000 - £35000 per annum + competitive   |   Engineer - Design & Construction  |  Scotland, Aberdeen

  • Piping Engineer

    Salary negotiable   |   Engineer - Design & Construction  |  France

  • Fabricator/Welder

    Salary £12 - £14 per hour + PPE   |   Engineer - Petroleum  |  England, Hertfordshire, Hemel Hempstead

  • Installation Engineer (Pipeline Shallow Water)

    Engineer - Design & Construction  |  France, Isle of France, Paris

  • Service Engineer

    Salary To be discussed   |   Engineer - Maintenance  |  England, London, North West London

More Europe Jobs

More Global Jobs

Opinion & Commentary

  • Eight pieces of our oil price predicament
    A person might think that oil prices would be fairly stable. Prices would set themselves at a level that would be high enough for the majority of producers, so ...

» More Opinion & Commentary         » Write for us             RSS RSS

Oil & Gas Training

Mastering 4D Seismic
Ian Jack, London, 06 Nov 2014

Petroleum Geology of West Africa
Duncan Macgregor, London, 12 Nov 2014

Introduction to Contingency Planning: The value to oil and gas companies in high-risk areas
Mark Theobald, London, 18 Nov 2014

All Upcoming Training


Opinions & Commentary

Oil price, BP/Chevron, Ophir and finally...

by Malcolm Graham-Wood

Read More »