Downstream attractions

An expanding economy and efficient oil logistics – the latter a legacy of the years of state control – make Spain an attractive downstream market. Repsol YPF is making sure it will hold onto its dominant position, Martin Quinlan writes

TWO DECADES of strong economic development – generally attributed to membership of the European Union (EU), which the country joined in 1986 – have brought rapid expansion to Spain's once-sleepy downstream business. Despite the large-scale introduction of natural gas, the oil-products market has grown by more than 70% in that time. But refining capacity has not kept up. The country's nine facilities provide a capacity of 1.33m barrels a day (b/d) – only 100,000 b/d more than 20 years ago. Products consumption in 2007 ran at 1.50m b/d, according to government statistics, so refineries are operating at maximum utilisation and still there are imports (see Table 1 and Figure 1). Three companies