The British energy company Shell said its Pernis oil refinery, in the port of Rotterdam, is operating at full capacity to produce jet fuel. The European Union depends on imports of jet fuel (kerosene, essentially), which come 75 percent from the Middle East: the bloc is therefore highly exposed to the crisis in the Persian Gulf, to the point that Aci – an industry organization – has warned that European airports risk running out of fuel if the Strait of Hormuz is not reopened within a few weeks. Moreover, the summer season, when travel is at its peak, is about to begin.
EUROPEAN REFINERIES ARE IN “MAX JET MODE”
Pernis is the largest oil refinery in Europe. Frans Everts, a Shell executive responsible for operations in the Netherlands, assured Bloomberg that this and other plants are trying to produce as much jet fuel as possible – although he did not provide precise data – a condition he defined as “max jet mode”.
THE REFINING CRISIS
The problem is that, at the European level, refining capacity has long been in crisis: few plants are able to break even (the condition where revenues equal expenses), having to cope with high energy prices and the payment of CO2 emission allowances. The rise in crude oil prices – which have increased by about 30 percent since the start of the Iran war – has further squeezed refinery margins.
THE EUROPEAN COMMISSION’S PLAN FOR REFINERIES AND JET FUEL
The European Commission has announced that in May it will introduce a mapping of refining capacity at the community level and will adopt measures to ensure that this capacity is fully utilized. Increasing jet fuel production may not be possible, however, since refineries must dedicate themselves to other crude oil derivatives and process reorganization is not always technically feasible.
“We will strengthen actions to ensure that fuel supplies, including those for airplanes, are adequate throughout the Union,” declared Energy Commissioner Dan Jorgensen. “We will try to maximize existing refining capacity in Europe and will assess rules on strategic and emergency stocks to see if more can be done.”
THE SITUATION AT EUROPEAN AIRPORTS
Despite increases in jet fuel prices and the risk of flight cancellations reported by airlines such as Lufthansa and KLM, there is currently no severe fuel shortage at European airports: at least, not as severe as in some Southeast Asian countries, which have had to ration fuel. However, in four Italian airports – Milan Linate, Bologna, Venice, and Treviso – there have already been restrictions on aircraft refueling.
