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The UK Petroleum Industry is also referred to as the
downstream sector. It is made up of over 200 companies involved in the
refining, distribution and marketing of petroleum products. They range from
large multinational oil companies, as well as involving supermarket chains, company
owned and independent retailers through to small single site filling stations
in rural areas The main product of the downstream sector is transport
fuels (aviation kerosene, diesel and unleaded petrol) which can amount to 60% of
a refinery output. The market for transport fuels in the UK amounts to about 50 million
tonnes per year and this is split into commercial and retail markets as well as
aviation . The commercial market includes industrial transport ( cars, trucks,
buses, trains ), marine ( cargo ships, fishing boats) and agriculture (tractors
etc) ,as well as Government; which includes public services and military
vehicles
The industry employs over 150,000 people directly, and
several thousand contract workers. The workforce is employed in stabilising,
refining and manufacturing, and in distribution and forecourt retailing. This
essentially means a chain that firstly removes light gases from the crude
oil that is extracted from the earth, refines the crude oil and then sells the
refined product through various outlets which includes petrol stations.
The industry is also creating new “greener” fuels such as
bio-diesel/ bio ethanol made from renewable sources such as vegetable oils /
sugar beet, to reduce harm to the environment. The UK Petroleum Industry
Association (UKPIA) has also said that by 2009 vehicles will become even more
clean and less polluting. Hybrid vehicles are likely to become more common,
particularly in urban areas. (A hybrid car is a vehicle which operates using a
mix of petrol and electric power and causes less pollution).
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