A worker stands under the wing of an aircraft while refueling at Dublin Airport. (Chris Ratcliffe/Bloomberg)
key takeaways:
- BP increased jet fuel production at European refineries by about 30% during the Iran conflict, helping prevent shortages caused by halting shipments through the Strait of Hormuz.
- The war disrupted Middle East exports and prices reached record levels, but high European production and imports from other suppliers prevented supply shortages in the summer.
- Refiners including Repsol and Shell are adjusting operations to maximize jet fuel production, underscoring ongoing efforts to manage supply risks during the disruption.
BP Plc boosted jet fuel production at its European refineries by nearly 30% during the Iran conflict, helping the region avoid major shortages while millions of barrels were locked in the Persian Gulf.
The outbreak of the war in late February raised fears that a decline in jet fuel exports would lead to a serious supply crisis in Europe just ahead of peak summer demand. Prices reached record levels. Yet increased local production and rising imports from other suppliers helped the continent avoid the crisis.
“We continually work to identify and address the next obstacle,” BP senior vice president Brenda Stout said in an interview. He said the company has made investments to allow its plants to process a wider range of crude and change its mix of products, increasing flexibility to respond to supply shortages.
Europe is a net importer of jet fuel, with most purchases in normal times coming from the Middle East. The near halt of traffic through the Strait of Hormuz prompted many refiners to alter their operations, reducing their production toward jet fuel and kerosene – a closely related petroleum product.
Spain’s Repsol SA said it increased jet fuel yields by up to 25%. Shell Plc, which owns the giant Pernis refinery in Rotterdam, said in April that the plant was pumping out as much fuel as it could.
