Reuters: UK government sees more scope for refinery closures
Britain said on Wednesday there was scope for more UK refining capacity to close without undermining energy security but set up a new task force to help the struggling sector fend off overseas competition.
The government's long-awaited review of Britain's refining and fuel imports sector comes a week after Murphy Oil said it could be forced to close its loss-making Milford Haven plant in Wales after talks with a potential buyer collapsed.
In a 44-page report, the Department of Energy and Climate Change said environmental regulation along with the U.S. shale boom and the rise of new refiners in Asia made it harder for Britain's seven refineries to compete.
"Looking to the future, given current overcapacity in product supply there is scope for further rationalisation in the UK without impacting on supply security," the review said.