The strategic nature of refining in Europe

The following table summarizes the main applications of refining by-products:

It is a transformation activity that constitutes the main pillar of the industry, allowing the continuity of continental value chains. However, during the last decades part of this industrial capacity has been losing relative weight within the European context.

Geopolitical events in recent years have highlighted this situation: first, the war in Ukraine forced Europe to reconfigure supply flows; more recently, tensions in the Middle East and disruptions in strategic routes such as the Strait of Hormuz have once again highlighted the risks associated with relying on external markets and logistics corridors for the supply of essential products. 

All this raises an inescapable question. What are the risks of this situation?

Dispensing with domestic refining capacity entails systemic consequences that threaten the economic stability of the continent. Sector analysis identifies clear risks: increased dependence on energy imports, permanent exposure to price volatility in global markets, and loss of highly skilled jobs.  

In Europe, the refining industry directly and indirectly supports more than 76,000 workers, contributes 1.8% to the EU GDP and generates more than €31 billion in indirect commercial activity. Added to this is the fact that neglecting this industrial base makes the energy transition process itself more expensive and slows it down.  

When a facility is completely dismantled, recovering that industrial capacity requires rebuilding and making substantial investments. On the other hand, keeping industrial assets operational or susceptible to conversion facilitates their adaptation to new technologies and energy uses, taking advantage of existing infrastructures, technical knowledge and capabilities.

Building new facilities from scratch often requires high investments and longer lead times than adapting certain existing assets, although the difference depends on each project and technology. Without refining, Europe not only loses security of supply in the present, but also industrial capacities, skilled employment and part of the associated productive activity, which tends to move to other regions. 

Unlike the current of closures experienced in much of Europe, Spain decided to follow a different course and strengthen its industrial network.

This sustained investment allows us to operate facilities of high technical complexity, capable of processing more than 100 different types of crude oil mainly from the Atlantic basin (United States, Mexico, Brazil) and North Africa, avoiding the exclusive dependence on vulnerable international routes. This operational flexibility has been decisive during the recent international crises. According to data reported by the Government in April 2026, Spain produced around 80% of the kerosene it consumes, a capacity that contributes to strengthening security of supply and responding more quickly to possible disruptions in international markets. 

The regional and national economic impact of this network is undeniable: the refining system contributes significantly to the creation of value, industrial employment and the competitiveness of numerous production chains in Spain.  

But the strength of these facilities lies not only in securing the current supply, but in their ability to evolve towards the new energy model.

To consolidate this industrial transformation and avoid the closure of new plants in Europe, it is essential to have a predictable regulatory framework that acts as a real enabler of investment and not as a bureaucratic or fiscal brake. 

The refining sector urges the correction of the cost differences that currently reduce the competitiveness of European plants compared to facilities in third countries. European Union refineries face regulatory costs that their competitors outside Europe cannot bear, which promotes the entry of imported products and can end up displacing industrial activity and emissions outside our borders. An example is the high cost of CO₂ associated with the European emission allowance market (EU ETS). 

Therefore, I consider it necessary to move towards a framework based on technological neutrality, which allows us to compete under more balanced conditions and make progress in reducing CO₂ emissions. 

The sector proposes applying a technological-neutral approach that values the different solutions based on their ability to reduce GHG emissions, their viability and their contribution to each mode of transport. The energy transition must be based on the complementarity of all viable solutions, ensuring a level playing field between renewable electricity and renewable fuels in all means of transport.  

This approach can promote a more flexible transition, in which electrification and renewable fuels play complementary roles according to the characteristics of each use.

Recognizing the fundamental value of refineries in due time allows us to have accessible, safe and continuous energy while we advance in the development of new technologies that allow us to reduce our carbon footprint.  

Europe is at a strategic crossroads: supporting the transformation of its industrial and energy base or accepting a growing foreign dependence that will undermine its autonomy and decision-making capacity. Safeguarding our European refining capacities, modernizing them and providing them with a fair regulatory framework is the best guarantee to ensure the resilience and progress of our continental economy. This debate is framed in the same logic as energy autonomy and security of energy supply, pillars of the new European energy model.