The industry, also known as downstream, comprises 240 companies involved in the refining, distribution and marketing of petroleum products (the remainder of employers are forecourt retail).  The main product of the sector is transport fuel amounting to about 46 million tonnes per year for both commercial and retail markets.  There are 120,000 employed in the UK petroleum industry (according to industry sources).

The demand for road transport is growing and is expected to continue to increase. By 2020 demand is predicted to have grown by 20% from 2000 levels. The increasing proportion of diesel vehicles has seen sales of deisel continue with strong growth with sales up 13.7% in the 2005. Sales of petrol have been falling since reaching a peak of 33 billion litres in 1990, with a decease of 2.9% in 2005 and an overall decline of 18.6% in the last 10 years.

There were 9,764 filling stations in the UK at the end of 2005, of which 1,172 are owned by supermarkets. The rate of closure of filling stations in recent years means that the UK now has less filling stations than it had in 1914. Many filling stations owned and operated by both oil companies and independent retailers have closed due to fierce competition and low profits. However, the number of supermarket sites is increasing.

The regional clusters of activity in the industry:

• stabilising, refining and manufacturing – 21% in Yorkshire and Humber, and 18% in the South East
• storage, blending and distribution – 16.5% in Yorkshire and Humber, and 15% in Wales
• heating services (including distribution) – 20% in South East
• forecourt retailing – 23% in the South East

For the occupational profile of the industry go to occupations.

Skills gaps have been identified for specific segments of the industry: 

• stabilising, refining and manufacturing – insulation engineering skills; heath and safety; and management skills
• storage, blending and distribution – general engineering skills; heath and safety; IT; and shortfall in drivers with ADR qualifications (licence to transport hazardous goods)
• heating services (including distribution) – heath and safety; IT; and shortfall in drivers with ADR qualifications
• forecourt retailing – product skills; heath and safety; management skills; and IT

Generic skill needs include: technical; practical; communication; team working; flexibility; problem solving; customer handling; and machine operation skills.

Drivers of change:

• the economic conditions of the UK and wider markets
• overcapacity in refining in Europe with gasoline and fuel oil production exceeding demand
• increased need to enhance environmental management processes reducing greenhouse gas emissions will be a major challenge
• intensified competition from globalisation
• government policy for example Climate Change Levy
• technological developments

For more future trends and challenges in the industry go to Future drivers in the sector and its industries.

Source: Cogent website 2006, Energy Institute Retail Marketing Survey 2006 and UKPIA 2005

Click here for details on the workforce profile and dimensions of equal opportunities.  For information on the regional profile of the workforce see: