ExxonMobil has warned that the UK’s oil refining sector might disappear completely if carbon prices proceed to rise, noting that unfair competitors with refineries in Africa and Asia is placing the sector underneath extreme stress.
Paul Greenwood, head of the US firm’s UK arm, stated throughout a parliamentary listening to on Wednesday that it was like an imminent catastrophe.
He added: “All refineries in Britain will ultimately shut if carbon prices proceed to rise whereas our opponents don’t bear the identical burden.”
Greenwood defined that the corporate just isn’t requesting monetary assist from the federal government, however is simply asking to attain a certain quantity of… Parity” by together with the refining sector inside the cross-border carbon tax adjustment mechanism.
A cross-border carbon tax is a mechanism whereby the UK imposes duties on imports of products coming from nations with much less stringent environmental requirements.
Greenwood famous that two UK oil refineries have already closed this yr, partly attributable to rising prices and elevated competitors from abroad refineries.
