Jorgensen made a statement to the press in Brussels after his meeting with EU refinery representatives.
Stating that Europe is faced with an energy crisis once again due to geopolitical turmoil, Jorgensen said that the prices of crude oil and petroleum products have increased significantly around the world, as it was during the beginning of the Russia-Ukraine war.
Jorgensen pointed out that rapidly rising fuel bills in the EU put a strain on companies and households.
Emphasizing that refineries play a vital role in ensuring supply security by producing the fuels needed by the market, including jet fuel, Jorgensen said, "We expect the supply squeeze in the global diesel market to continue until the later periods of 2027. This will cause prices to remain high." he said.
Jorgensen stated that Europe must ensure reliable and affordable fuel supplies for its citizens, businesses and defense in the face of challenging geopolitical conditions and urgent security needs.
A quarter of refineries in the EU have closed
Stating that the EU Commission initiated a dialogue with refineries in Europe for this purpose, Jorgensen stated that approximately one quarter of the refineries in the EU have been closed in the last 20 years and the refining capacity within the Union has decreased by approximately 10 percent.
Jorgensen pointed out that the withdrawal of investments from the sector in Europe is accelerating and said, "This crisis is a warning. We must reverse this trend and ensure that we have sufficient and flexible refining capacity in Europe today and in the future." he said.
Emphasizing that the issue is about security as well as economic competitiveness, Jorgensen said, "We know very well that addictions are dangerous." he said.
"We know this winter will be difficult. It will be difficult for our citizens and our economy in general," Jorgensen said. made his assessment.
Stating that efforts to reduce energy prices structurally and in the long term are continuing, Jorgensen said that they are working in close cooperation with member countries and the energy sector to address the immediate effects of price increases.
It is aimed to increase production in refineries
Jorgensen stated that the meeting with refinery representatives was productive, that the work will continue at the technical level and that they will meet again at the beginning of next year to evaluate the progress.
Stating that they will work to increase the production of refining facilities in Europe, Jorgensen stated that the sector offered some suggestions that should be evaluated.
Jorgensen stated that reducing fuel prices is very important in relieving the pressure on companies and citizens in the short term.
Stating that diesel and jet fuel are vital for transportation, economy and defense, Jorgensen said that an environment should be created that supports sufficient fuel production and the long-term survival of the refining sector in the EU's decarbonization process.
Stating that refineries and new companies in the sector should turn to more biofuel and e-fuel production, Jorgensen noted that renewable liquid fuel production has already compensated for some of the decrease in Europe's refining capacity.
Jorgensen explained that this production will help reduce the risks arising from fuel imports in the coming years, and that they will prepare a common road map compatible with climate targets regarding the transformation of the sector and its contribution to the EU's security goals.
Jorgensen reminded that the EU's long-term strategy is to move away from fossil fuels and aims to be carbon neutral by 2050.
Pointing out that people still use internal combustion engine vehicles and that natural gas and oil are used for heating in homes, Jorgensen said that a balance should be struck in supporting refineries in the short term while continuing the long-term transformation.
Having fuel on the market is not enough
Jorgensen emphasized that a supply security problem is not expected in the current situation, but this does not eliminate the problem of affordability of fuel prices.
Drawing attention to the situation of citizens and businesses who cannot afford to buy fuel or heat their homes, Jorgensen said, "If they cannot afford to buy it, the availability of fuel on the market does not make a difference for them." he said.
Jorgensen said that temporary and targeted relaxation of some technical requirements may be considered, but it is necessary to ensure that these steps work and do not cause other problems.
Touching on the impact of reducing demand, Jorgensen noted that the combined implementation of energy efficiency measures and the transition from fossil fuels to electrification yields results.
