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BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Jun 21, 2019

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Page 1: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

1

Page 2: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

BELGIAN PETROLEUM FEDERATION

Quel avenir pour l’approvisionnement énergétique

en Belgique ?

La vision vue du secteur pétrolier

JP VAN DIJK 28 octobre 2018

Page 3: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Belgian Petroleum Federation (BPF)

Industrial activity :

• Refineries: four

• Tank Storage: four

3

Marketing and Distribution :

seven companies under the brands

(EG Group)( jet fuel;

no retail netwerk)

BPF represents in Belgium:

100 % of the refining capacity

± 80 % of the fuels put into consumption

Page 4: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

EU average oil refining production (600Mt in 2017) by final usage

EU average oil refining production (600Mt in 2017) by final

usage (source Fuels Europe and BPF )

4

Sources: EUROSTAT, EUROSTAT, Wood Mackenzie product markets long-term outlook H2 2017 Demand in EU 28, NOR, CH, ISL for 2015

BelgiumConsumption inland:

23Mt (2017)

• Fuels for transport:

9 Mt and stable

• Feedstock for chemical

industry :

8.5 Mt and increasing

• Fuels for heating

<4Mt and decreasing

Source: Fuels Europe and BPF

Page 5: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Belgium/Benelux at the heart of the refining and petrochemical

industry Europe

5 )

Source: CIEP study Source: GHA

Refining in Belgium :

35Mt ( EU = 600mt) (2017)

Page 6: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Fuel price at the pump in Belgium (01/10/2018)

6

Program agreement (between sector and government):

Daily sets the maximum prices of petroleum products

Since 1974

Aims at security of supply and consumer protection.

Page 7: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Refinery economic context : a gross margin squeezed between

two market prices (case of diesel)

Page 7

Source : Fuels Europe Yearbook 2018

Page 8: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Energy sources and consumption by region ( 2017)

Forecast CO2 emission per capita (2016-2040)

Source: Fuels Europe from BP Statistics 2018, and from EEA8

Page 9: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

GHG EMISSIONS BY SECTOR in EU (2015)

9

Source: FuelsEurope / European Environment Agency (EEA)

Page 10: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

EUROPE CO2 EMISSIONS BY SECTOR: HISTORY

10

Source: FuelsEurope / European Environment Agency (EEA)

Page 11: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

2040 FORECAST CHANGES IN WORLD OIL DEMAND BY

SECTOR, (IEA NEW POLICIES SCENARIO)

11

Main drivers:

• Environmental concerns

• Technical progress

• Economic growth

• Population growth

• Lifestyle

Source: FuelsEurope / International energy Agency (IEA)

Page 12: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Transportation fuels/ fuels for passenger vehicles : projections in

the sector foresee a slowing down (world)

12

(source Exxon Mobil Energy Outlook 2018 )

Page 13: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Case for liquid fuels as electrification will play a role but with

limitations

Source : Fuels Europe

Weight of required

equivalent battery

Page 14: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

In Europe the use of liquid fuels will be challenged and its future

conditioned by its content of renewable hydrocarbons

22 %

9 %

14 %

38 %

17 %

Liquid fuels with

(Renewable)

Hydrocarbons:

necessary in the

long term

Liquid fuels with

Renewable

Hydrocarbons:

in competition with

other options

approx.

40%

Non-energy use

(eg chemical

feedstock

Aviation

/ Marine

Heavy

duty

vehicles

Light duty

vehicles

Heat

Source : Fuels Europe, Prognos AG, Berlin

(Case: Germany 2016)

Page 15: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

An increasing number of vehicles and some vehicle types that

need to reduce their NOx emissions

15

Source : VMM 2018

Page 16: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Passenger cars: NOx emissions from diesel cars will shortly

start to reduce significantly also

16

Page 17: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Truck manufacturers have managed the reduction of NOx, next

step is to reduce the CO2 emissions

17

source: UK gov 2018, Road to zero & BPF

Tailpipe NOx

emissions (g/km)

Lower consumption and Lower Carbon

Fuels

Page 18: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Passenger cars are reducing the average unit energy

consumption and CO2 emission (cars)

18

Source: UK Gov Road to zero

Page 19: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Reducing the CO2 emissions with lower carbon fuels: technology

readiness level (TRL)

19

RED 1

RED 2

Hydrogen

Page 20: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

The « refinery » will become an energy hub within an industrial

cluster

source: Fuels Europe Vision 2050

Page 21: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

Which liquid fuels : the case of diesel fuel

→ Vehicles with diesel engines will have lower emissions

→ Lower carbon fuels will develop further, with more renewables

and chemical transformation / synthesis, leading to diesel XTL fuels

• Actual status:

– It is already normed and available since before the norm

– Engines/powertrains can be optimised to its properties

• Feedstock

– Variety of sources (GTL, BTL and in future PTL = e-fuels)

• Process:

– Variety of chemical processes depending on the sources

– Use of green hydrogen and CO2 to lower CO2 footprint

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Page 22: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

In Europe lower carbon liquid fuels will challenge the alternatives

22 %

9 %

14 %

38 %

17 %

Liquid fuels with

(Renewable)

Hydrocarbons:

necessary in the

long term

Liquid fuels with

Renewable

Hydrocarbons:

in competition with

other options

approx.

40%

Non-energy use

(eg chemical

feedstock

Aviation

/ Marine

Heavy

duty

vehicles

Light duty

vehicles

Heat

Source : Fuels Europe, Prognos AG, Berlin

(Case: Germany 2016)

22

Page 23: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

SUMMARY

• THERMAL ENGINES IMPROVE THEIR PERFORMANCE AND

LOWER THEIR EMISSIONS

• LOWER CARBON LIQUID FUELS WILL DEVELOP

• LIQUID FUELS WILL CONTINUE TO HAVE A PLACE IN

TRANSPORT

• AS A LOGISTIC AND INDUSTRIAL HUB BELGIUM IS WELL

PLACED TO PLAY A ROLE IN LOWER CARBON FUELS

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Page 24: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

The “fuelstation” will have lower carbon liquid fuels, will

integrate other fuels and energies

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Source: Fuels Europe

Page 25: BELGIAN PETROLEUM FEDERATION - igeat.ulb.ac.beigeat.ulb.ac.be/fileadmin/media/images/PP_conf/4._Jean-Pierre_Van_Dijk.pdf · (source Exxon Mobil Energy Outlook 2018 ) Case for liquid

BELGIAN PETROLEUM FEDERATION

Merci pour votre écoute