Von der Leyen turns to Europe’s refineries as shrinking capacity raises energy security concerns

Ursula von der Leyen, European Commission President, has launched a new strategic dialogue on European refineries, highlighting the vulnerability of the EU due to its dwindling refining capacity. The capacity for refining crude oil into products like diesel or jet fuel has been decreasing since 2009, with 20% lost by the end of 2025.

The EU, which relies heavily on imports of finished fuels from volatile regions such as the Middle East, United States, and India, faces growing concerns over its energy security. The shift away from fossil fuels due to green ambitions has reduced the EU's traditional fuel supply, while global conflicts complicate the securing of reliable energy.

Von der Leyen's dialogue aims to lower costs and ensure the bloc has the necessary supplies for defense. EU lawmakers, including Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius, will chair the discussions. The G7's emergency oil stocks release offers short-term relief from rising energy prices, but securing oil from global markets has become costlier, with Brent crude averaging $101 per barrel in September.

Tensions in the Middle East and Ukraine's attacks on Russian refineries have exacerbated the situation, with the EU paying over €100 billion in additional costs for fossil fuel imports. The EU's declining refining capacity, at nearly 100% less than in 2009, raises the risk of drawing down emergency oil reserves faster than anticipated.

Despite the ease of importing crude oil, Europe's reduced refining capacity cannot guarantee the refined diesel, jet fuel, and petrol needed.