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Oil
EU' energy policy aim to ensure that European citizens can access secure, affordable and sustainable energy supplies. The EU is working in a number of areas to make this happen. On Oil, the EU is providing a series of standards and rules in order to assure a common approach in all Member States.
In this chapter:
In this chapter:
- Oil production
- Oil import
- Oil stock
- Oil refining
- Oil infrastructures
Production: Offshore oil and gas safety
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The majority of oil and gas production in Europe takes place offshore and there are currently around 550 installations in European waters. Given the EU's high energy demand, these operations are crucial for helping ensure a secure supply of energy. At the same time, accidents such as the 2010 Deepwater Horizon disaster in the Gulf of Mexico, illustrate the need for comprehensive safety measures. While safety is the primary responsibility of operators and individual countries, EU rules are important because an accident in one country can cause environmental and economic damage to its neighbours as well. EU wide safety standards Under the Directive on Safety of Offshore Oil and Gas Operations (2013/30/EU), the EU has put in place a set of rules to help prevent accidents, as well as respond promptly and efficiently should one occur:
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- national authorities must verify safety provisions, environmental protection measures, and the emergency preparedness of rigs and platforms. If companies do not respect the minimum standards, EU countries can impose sanctions, including halting production.
- information on how companies and EU countries keep installations safe must be made available for citizens.
- companies will be fully liable for environmental damages caused to protected marine species and natural habitats. For damage to marine habitats, the geographical zone will cover all EU marine waters including exclusive economic zones and continental shelves.
- under the Offshore Oil and Gas Operations Directive, citizens can express opinion and comments on the environmental effects of planned offshore oil and gas exploration operations and must be duly informed by the authorities of their Member states.
In 2015, the European Commission published a Report and Staff Working Document on liability and compensation in the case of offshore accidents in Europe. These documents look at how bodily injury, property damage and economic losses are handled, as well as the financial security instruments that would cover such damage. They build on the findings of a study done for the Commission that was published in 2014.
The competent authorities of Member States work together through the European Union Offshore Oil and Gas Authorities Group (EUOAG) to share best practices and improve standards.
To further promote offshore safety, the European Commission works with its international partners on the implementation of the highest safety standards worldwide.
Evaluation of the offshore oil and gas directiveThe Commission currently reviews and evaluates the Offshore Safety Directive and plans to provide a report to the European Parliament and Council latest by July 2019.
Documents available
- Annual Report on the Safety of Offshore Oil and Gas Operations in the European Union for the Year 2017
- Former Annual Reports on the Safety of Offshore Oil and Gas Operations in the European Union: 2016
- Report on liability, compensation and financial security for offshore oil and gas operations pursuant to Article 39 of Directive 2013/30/EU | Staff working document
- Study: Civil liability, financial security and compensation claims for offshore oil and gas activities in the European Economic Area (October 2014)
- Peer review meetings on the assessment of risk in the offshore oil and gas industry (July 2012)
- Impact Assessment on offshore oil and gas safety [SEC(2011)1293]
- Executive Summary of the Impact Assessment [SEC(2011)1294]
- Annexes to the Impact Assessment [SEC-COM(2011)1293-1294]
Related links
Related legislation
- Directive 2013/30/EU on safety of offshore Oil and gas operations
- Commission Decision on setting up the EUOAG (Jan. 2012)
- Commission Implementing Regulation (EU) No 1112/2014 of 13 October 2014 determining a common format for sharing of information on major hazard indicators by the operators and owners of offshore oil and gas installations and a common format for the publication of the information on major hazard indicators by the Member States
- Guidance Document on Commission Implementing Regulation (EU) No.1112/2014
Import: Crude Oil Imports
While the transition to alternative sources of energy is well underway, EU countries are currently still dependent on imports of crude oil and petroleum products. Oil import dependency reached a record high in 2019 when the EU relied on net imports for almost 96.8% of the crude oil and petroleum products consumed. Production of crude oil in the EU reached a record low in 2019.
- A statistical overview
- Monthly and cumulative crude oil imports into the EU (2001-2019)
- Volumes and prices for monthly and cumulative crude oil imports by reporting country (2013-2019)
- Volumes and prices for monthly and cumulative crude oil imports by country of origin (2013-2019)
- Crude oil imports by EU country including cost, insurance, and freight (2005-2019)
EU Oil Stocks
Oil accounts for almost 35% of the EU's energy mix. It is therefore vital to maintain emergency stocks to be used in the event of supply disruptions.
The European Emergency oil stocks
Under the EU's Oil Stocks Directive (2009/119/EC):
- EU countries must maintain emergency stocks of crude oil and/or petroleum products equal to at least 90 days of net imports or 61 days of consumption, whichever is higher
- Stocks must be readily available so that in the event of a crisis they can be allocated quickly to where they are most needed
- EU countries must send the European Commission a statistical summary of their stocks at the end of each month. This summary must state the number of days of net imports or consumption that the stocks represent
- During a supply crisis, the Commission is responsible for organising a consultation between EU countries. Withdrawals from stocks should not be made before this consultation, except in a very urgent situation
- The Oil Coordination Group is a standing advisory group that facilitates coordination between EU countries and with the Commission.
Detailed statistics on the levels of emergency stocks held by EU countries from 1 January 2013 onwards are available from Eurostat.
Mid-term evaluation
The mid-term evaluation of the oil stocks directive assessed the actual effectiveness, efficiency, relevance, coherence and EU-added value of the directive; its results are presented in a Staff Working Document (November 2017).
As part of the evaluation, the Commission sought the views of stakeholders and citizens in a public consultation in 2016.
Documents
- Impact assessment "Measures resulting from the mid-term evaluation of the Oil Stocks Directive 2009/119"
- Mid-term evaluation of Council Directive 2009/119/EC (SWD (2017) 438 final)
Oil refining
Refineries process crude oils into finished products by breaking them down into their components and selectively reconfigurating them into new products, such as fuels and lubricants for automotive, ship, and aircraft engines. Refining by-products can also be used in petrochemical processes to form materials, such as plastics and foams.
According to the BP Statistical Review of World Energy 2018, the EU has a refining capacity of more than 14 million barrels a day, representing around 14% of the total global capacities, implying that the EU is the third largest refining market after the US and China.
EU Refining Forum
The EU Refining Forum discusses planned regulatory proposals which may impact the refining industry and the EU's secure supply of petroleum products. It brings together representatives from the industry,
EU countries, the European Parliament, and the European Commission, as well as other stakeholders.
The forum was created in 2013 and it is a key follow up to the previously held EU refining roundtable.
EU Refining fitness check
As part of its better regulation policy the Commission initiated a programme for Regulatory Fitness and Performance (REFIT) in 2012.
This is a continuous process, affecting the whole policy cycle – from the design of a piece of legislation to implementation, enforcement, evaluation and, where justified, revision.
One of the actions possible under REFIT is a ‘Fitness Check’ which provides an evidence-based critical analysis of whether EU actions are proportionate to their objectives and delivering as expected. A fitness check pays particular attention to identifying any synergies (e.g. improved performance, simplification, lower costs, reduced burdens) or inefficiencies (e.g. excessive burdens, overlaps, gaps, inconsistencies and/or obsolete measures) within the group of measures which may have appeared over time, and help to identify the cumulative impact of the interventions covered, covering both costs and benefits.
The oil refining fitness check evaluated how the EU petroleum refining sector is affected by ten of the most relevant pieces of EU legislation in the fields of environment, climate action, taxation and energy. The analysis covered a wide range of important aspects including five key evaluation criteria (effectiveness, efficiency, coherence, relevance and EU added value). Consideration was also given to the sector’s competitiveness position from 2000 to 2012 and issues, such as excessive regulatory burden, overlaps, gaps inconsistencies or obsolete measures.
Documents
Related links
Related legislation
Refineries process crude oils into finished products by breaking them down into their components and selectively reconfigurating them into new products, such as fuels and lubricants for automotive, ship, and aircraft engines. Refining by-products can also be used in petrochemical processes to form materials, such as plastics and foams.
According to the BP Statistical Review of World Energy 2018, the EU has a refining capacity of more than 14 million barrels a day, representing around 14% of the total global capacities, implying that the EU is the third largest refining market after the US and China.
EU Refining Forum
The EU Refining Forum discusses planned regulatory proposals which may impact the refining industry and the EU's secure supply of petroleum products. It brings together representatives from the industry,
EU countries, the European Parliament, and the European Commission, as well as other stakeholders.
The forum was created in 2013 and it is a key follow up to the previously held EU refining roundtable.
EU Refining fitness check
As part of its better regulation policy the Commission initiated a programme for Regulatory Fitness and Performance (REFIT) in 2012.
This is a continuous process, affecting the whole policy cycle – from the design of a piece of legislation to implementation, enforcement, evaluation and, where justified, revision.
One of the actions possible under REFIT is a ‘Fitness Check’ which provides an evidence-based critical analysis of whether EU actions are proportionate to their objectives and delivering as expected. A fitness check pays particular attention to identifying any synergies (e.g. improved performance, simplification, lower costs, reduced burdens) or inefficiencies (e.g. excessive burdens, overlaps, gaps, inconsistencies and/or obsolete measures) within the group of measures which may have appeared over time, and help to identify the cumulative impact of the interventions covered, covering both costs and benefits.
The oil refining fitness check evaluated how the EU petroleum refining sector is affected by ten of the most relevant pieces of EU legislation in the fields of environment, climate action, taxation and energy. The analysis covered a wide range of important aspects including five key evaluation criteria (effectiveness, efficiency, coherence, relevance and EU added value). Consideration was also given to the sector’s competitiveness position from 2000 to 2012 and issues, such as excessive regulatory burden, overlaps, gaps inconsistencies or obsolete measures.
Documents
- Minutes of the extended Fitness check (ISSG) meetings (2014-2015)
- Mandate Fitness Check - Petroleum refining sector (June 2013)
- Impact Assessment on offshore oil and gas safety [SEC(2011)1293]
- Refining and the supply of petroleum products in the EU [SEC(2010)1398]
Related links
- European Commission Staff Working Document on the Oil Refining Fitness Check SWD(2015) 284 final/2
- Scientific Study on the Oil Refining Fitness Check (December 2015)
- Study on the supply of petroleum products in the EU and infrastructure priorities for 2020 and beyond (2010) SEC/2010/1398 final
Related legislation
Infrastructures - Trans-European Networks for Oil
Having an Energy Union means having a shared strategy for long-term supply and a fully integrated European infrastructure, for oil, electricity and gas.
The EU identifies energy infrastructure projects that have value for the EU. These all called Projects of common interest (PCIs).
PCIs may benefit from accelerated planning and permit granting, a single national authority for obtaining permits, improved regulatory conditions, lower administrative costs due to streamlined environmental assessment processes, increased public participation via consultations, and increased visibility to investors. They also have the right to apply for funding from the Connecting Europe Facility (CEF).
Go to our Energy Infrastructure Page for all details.
