European Petroleum Industry Association EUROPIA

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European Petroleum Industry AssociationEUROPIA

• Peter Tjan
• Secretary General

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EUROPIA

• Formed in 1989 as Association of Companies
• Represents interests of EU oil refining,
  distribution and marketing industry to the EU
  Institutions
• Covers 90 EU refining capacity
• Members present in all EU-25 Norway,
  Switzerland
• Small Brussels-based Secretariat
• Independent Secretary General
• Executive staff on secondment from Member
  Companies

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EUROPIA Member Companies

• BP
• Cepsa
• Chevron
• ConocoPhilips
• ENI
• ExxonMobil
• Hellenic Petroleum
• Kuwait Petroleum International
• MOL

• Neste Oil
• OMV
• Petrogal
• PKN Orlen
• RepsolYPF
• Saras
• Shell
• Statoil
• Total

Industry consolidation has affected membership
numbers but not the size and scope of the
activities covered by EUROPIA
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EUROPIA priorities

• EU Energy Policy
• Energy Efficiency
• Security of Supply
• Energy Mix
• Renewables
• Climate Change
• ETS
• Post 2012 GHG targets
• Fuels / Product Quality
• Automotive
• Marine
• Air Quality
• Security of Installations
• Taxation

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Conference Theme

• EU-India Partnership
• Safe Secure Energy

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Recent oil market developments
Demand growth
Source OPEC
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Increasing activity in futures market

• Open interest surpassed 1 million contracts
  recently, reflecting sustained high interest by
  funds in oil futures!
• EU-OPEC Workshop on financial markets (Dec 06)

Source OPEC
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Long-term oil demand outlook
mbd

• Reference case sees oil demand rise by 30 mb/d by
  2025
• Four-fifths of increase in demand in developing
  countries
• However, OECD remains dominant consumer
• Developing countries will consume, on average,
  five times less oil per person, compared with
  OECD countries

Source OPEC
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OPEC Investment scenarios
Uncertain future demand translates into a broad
range of possible OPEC investment needs
Source OPEC
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Crude Price Developments
/bbl
Source OPEC
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EU Energy Package (Jan 2007)

• The most important and ambitious energy package
  it has ever presented
• Demand Side
• Energy Efficiency
• Supply Side
• Indigenous sources
• Clean, low carbon Coal
• Oil Gas
• Renewables
• Wind/Hydro/Solar
• Biomass
• Power Heat
• Transport
• Nuclear
• Technology
• Foreign Policy initiatives

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EU Long Term Vision

• EU will source the clear majority of its energy
  from secure carbon free resources
• 2030 2050 target for low carbon energy
• Consistent targets for GHG reduction

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Partnership

• EU/India similarities
• Heavy reliance on fossil energy
• High dependency on foreign resources
• Similar source countries/areas
• Transport sector major consumer of fossil fuels
• Fast changing perception of
• Oil as a abundant low cost resource

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Partnership Opportunities

• Develop/align long term energy strategy
• Demand
• Consumer/consumer dialogue
• energy efficiency
• Product specifications
• Supply
• Maximise indigenous opportunities
• Exploit renewables potential
• External relations priorities
• Technology
• Align priorities and efforts and share best
  practices
• Joint development platforms
• Markets
• Remove market distortions
• Full price transparency
• Remove access barriers

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Thank You
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