JAHRESBERICHT [2007] - Wirtschaftskammer Österreich

4
PREFACE
In 2007, the international petroleum market was again
confronted with a global rise in prices for crude oil
and products. Markets were quick to respond to news
of riots, political calamities and the vagaries of the
weather which might have an impact on the oil supply.
Typical examples for 2007 were the continuing instability
in the Near East, strikes in Nigeria, Venezuela’s
nationalisation of its oil industry and the nuclear
dispute with Iran. Prices for Brent crude rose by 63%
over the year, to USD 96.02/bbl at the end of 2007.
At USD 97/bbl, the price had reached what was then
an all-time high in the second half of November. With
USD 72.7/bbl, the average price for Brent crude
exceeded the peak of 2006 by 11.6%. Nevertheless, the
outlook was different for the euro zone. While prices
rose by more than 11%, the annual average on a euro
basis remained almost unchanged at the previous
year’s level, because the US dollar declined in value
throughout 2007, by an average of 9% below the 2006
average. Thanks to the weakness of the US dollar,
product prices in Rotterdam were only up to 7% above
the 2006 level. For petrol pump prices in Austria the
same would have been true if it had not been for a
substantial increase in the mineral oil tax, especially
on diesel fuel which was in brisk demand.
According to data from the IAEA, global demand for
crude oil grew by 1.1% in 2007, to 85.8 mn bbl per day.
The growth was fuelled mainly by additional demand
from Asia and non-OECD countries, while OECD
countries recorded a fall-off in their demand. Global
crude production, at 85.6 mn bbl/day, was just like the
rate of the previous year. When including NGL, OPEC
had a market share of 43%. Austria recorded a decline
in domestic consumption of petroleum products, from
liquefied gas to fuels and bitumen, by 6% over 2006,
to about 12 mn metric tons. In terms of global oil consumption,
Austria thus consumed some 0.31% to 0.32%.
Within the European Union, Austria similarly is a minor
player at 1.7%, which does not have any effect on the
international market structure. Rather, considering
that Austria depends on oil imports for 93% of its consumption,
it is obvious that our economy cannot be
decoupled from the international oil market and its price
trends. Nevertheless, the Austrian petroleum industry
accepts its special responsibility for supplying the population
and businesses of Austria with sufficient petroleum
products. This responsibility includes not
just obtaining crude oil from a wide range of countries
and importing petroleum products through a number
of different supply channels but also the stockkeeping
of the stipulated emergency reserves to cover several
months of demand.
In this connection I would like to point out that the
Austrian Petroleum Industry Association, in its capacity
of representing its member companies, is charged with
consulting in subjects of energy, environment, taxation,
industrial code and social policy. Through its many
working panels, the Association offers petroleum
companies a platform within the scope of its statutory
pressure group activities. Additionally, the Association
has, in recent months, intensified its PR work to elucidate
the industry’s viewpoint in the public discussion
of fuel prices.
The members of the Association, working to ensure
the supply of energy to Austria as well as to Europe, are
interested in an energy and environmental policy that
does justice to the global challenges faced by energy
suppliers in the future. It is of particular concern to
the Association to identify realistic energy and environmental
targets and frameworks to guide petroleum
companies in the medium to long term. We therefore
refute any excessive fast-tracking on the part of Austria
in the shaping of laws and instead advocate a pan-
European solution to achieve comprehensive supply
security for petroleum products.
Vienna, September 2008
Wolfgang Ruttenstorfer, CEO
President of the Austrian Petroleum Industry Association (APIA)