Oil Dashboard Netherlands

View dashboard in separate window.

The Netherlands relies on international energy markets for its supplies of crude oil and refined products. These markets usually function well, but can be disrupted by unforeseen events, such as conflicts, natural disasters, terrorist attacks or the announcement of trade restrictions.

The Dutch government has taken measures to prevent or limit damage to society in such cases. One of these measures is keeping strategic oil stocks by COVA. The Netherlands is able to use these stocks if normal supplies are disrupted. COVA assesses the oil situation in the Netherlands on an ongoing basis, and the resulting insights enables the government to take additional measures. More information on potential measures in case of an (imminent) oil crisis can be found in the National Oil Crisis Plan.

The Dutch government has asked COVA to make the current oil situation transparent for everyone by means of this dashboard. The boxes above are an overview of the indicators monitored by the dashboard. This overview shows that the stocks of crude oil and refined products depend on the balance between refining, import/export and consumption. Prices may reflect balance or imbalance and give direction to the market. Together, these indicators show to what extent supply and demand of crude oil and refined products are in balance. In this way, they present an up-to-date picture of the Dutch oil market.

Prices

View in separate window. Source: S&P Global Commodity Insights.

Oil supply and demand are balanced by the wholesale market. In this global market, large buyers and sellers of oil settle a price that reflects the balance between oil supply and demand. The price of crude oil in the wholesale market is a key indicator of the degree of stability in the market. The above graph shows the price of crude oil and a selection of refined products.

View in separate window. Source: CBS Statline.

Dutch consumers buy their fuels at the retail service station, not on the wholesale market. The retail price, including tax, provides a more detailed and direct picture of the oil market for the consumer in the Netherlands. This price is determined primarily by tax (VAT), excise duty, stockholding levy, EUR-USD exchange rate fluctuations and the costs incurred by companies for refining products and selling fuel at the retail service station (transport, storage, forecourt staffing). Therefore, the retail price is different from the wholesale price.

Stocks

View in separate window. Source: Statistics Netherlands, Netherlands Enterprise Agency.

Crude oil and refined products are stored in large storage tanks. If we as a country consume more than physically supplied, the available physical stocks will decrease. Higher exports may reduce stocks as well. Changes in physical stocks therefore reflect the balance between supply and demand. Stocks are expressed in kiloton (Kton, see graph) or in days of consumption. This number of days indicates how long it will take before stocks would run out completely if there were no production, import and export. Total cessation of refined product supplies is highly unlikely. The Netherlands has contingency measures in place in the event that stocks are used up in full.

We distinguish two types of refined product stocks: commercial stocks and strategic stocks. Commercial stocks are freely marketable. Strategic stocks are maintained in order to be released in case of a major disruption of supplies. This is done in accordance with statutory provisions.

The above graph shows the freely available commercial stocks of diesel and gasoil. Monitoring the commercial stocks of these products is of particular importance, because Europe on its own does not produce enough diesel to meet European demand. Diesel is of vital importance to the economy and is used intensively in logistics, agriculture, construction, (inland) shipping and passenger transport. Moreover, the diesel market was hit hardest by the sanctions imposed after the Russian invasion of Ukraine. In order to be well prepared for any market disruptions, the Dutch government has up to date information on commercial stocks of diesel and gasoil.

View in separate window. Source: Netherlands Enterprise Agency and COVA.

Strategic stocks are intended for use in case of supply disruptions and emergency situations. In the event of a diesel shortage, for example, the government may decide to use (part of) the strategic diesel stock. In the Netherlands, it is the Minister who decides whether or not to deploy these strategic stocks.

The above graph indicates how much strategic stock the Netherlands has available (in Kton). The stocks, expressed in days of consumption, indicate how long it will take before stocks would run out completely if there were no production, import and export. As well as the strategic stocks of diesel and gas oil, the Netherlands holds strategic stocks of crude oil and other refiner products, such as gasoline and jet fuel.

In 2022, the Dutch government decided to increase the strategic diesel stock. This was because of the unstable international context and the changing oil market since the sanctions against Russia. This increase is clearly visible in the graph.

View in separate window. Source: Insights Global.

Refined product stocks are easily moved between countries and between continents. Geographical price differences are decisive in this context. The Dutch and Belgian ports together form a fuel trading hub. Internationally this hub is known as the Amsterdam-Rotterdam-Antwerp cluster (ARA). From this cluster, fuels make their way to the European hinterland and the rest of the world. As the Netherlands and Belgium are very closely connected through pipeline infrastructure and waterways, the oil market does not really make a distinction between stocks stored in large terminals in either the Netherlands or Belgium. This cluster with stocks is regarded as a whole.

The above graph shows the stocks of different products in independent storage terminals in the ARA cluster. ‘Independent’ means that storage at oil refineries is disregarded. The indicator is updated each week and is the market standard for measuring stocks in the ARA cluster. For this reason, this indicator is also included in this dashboard.

Technical details

The graph ‘Commercial diesel and gasoil stocks’ shows the level of freely available commercial diesel and gasoil stocks on Dutch territory. The oil infrastructure in Northwest Europe is closely integrated. This means that commercial stocks are also strongly impacted by events in neighbouring countries. Statistics Netherlands collects the level of the diesel and gasoil stocks held in the Netherlands. Combined with the Netherlands Enterprise Agency’s data on Dutch strategic stocks, this provides insight into the remaining stocks in the Netherlands available for commercial purposes.

The graph ‘Strategic diesel and gasoil stocks’ shows the level of the Dutch strategic diesel and gas oil stocks on Dutch territory. The Dutch strategic stock consists of the diesel and gasoil stocks maintained by COVA and the strategic stocks held by companies. COVA does not hold any diesel and gasoil stocks in other countries. Next to strategic stocks of diesel and gasoil, the Netherlands also holds strategic stocks of crude oil and other refined products, such as gasoline and jet fuel. The Netherlands Enterprise Agency collects the level of strategic stocks each month and reports this to Statistics Netherlands and COVA for publication on this dashboard.

The Netherlands also accommodates storage of diesel and gasoil stocks which are maintained for other countries (for example, for other European central storage entities ). These stocks are not freely available to the Dutch market and are therefore not reported.

The graph ‘Independent storage level ARA’ shows the stocks in the Amsterdam-Rotterdam-Antwerp cluster. These stock levels originate from Insights Global. This market intelligence agency requests automated stock reports from tank terminal companies each week. This figure concerns both commercial and strategic stocks in the Netherlands and Belgium. ARA stocks held at refineries are not included in this figure. Therefore, the ARA storage level is not complete, but it does provide a good picture of stock developments in the ARA region.

Refining activity

View in separate window. Source: JODI.

The oil refinery is the place where crude oil is converted into refined products such as gasoline, diesel and jet fuel. Refineries may be inactive, for instance because of scheduled or unscheduled maintenance work is being carried out, an incident has occurred or workers are on strike.

The above graph presents the refining activity of the five Dutch refineries. It shows whether the production of the Dutch refineries is higher or lower compared to the five-year average and the previous year. This gives an indication of the quantity of refined products becoming available to the market from Dutch refineries.

Together with imports, the production of refined products constitutes the supply side of oil. If supply is lower than demand, there will be a deficit. This means that the product stock will decrease. COVA and the IEA also monitor refining activity in neighbouring countries and the rest of the world.

Consumption

View in separate window. Source: Statistics Netherlands.

The above graph presents the consumption of refined products in the Netherlands. It incorporates all consumption by road transport, shipping, construction, agriculture and industry. Aviation and maritime bunkering in the Netherlands have been included as well.

The final energy demand refers to the fuel consumption by industry, households, services, agriculture and transport. By ‘bunkering’ we mean refuelling by aircraft and ships with an international destination.

The graph shows that total fuel demand in the Netherlands is declining over the years. However, the decline is not evenly distributed over the products. For example, demand for gasoline and jet fuel has again gone up after the ‘COVID dip’.

Import and export flows

View interactive map in separate window. Source: Eurostat import and export.

COVA developed this map in order to provide easy insight into the import dependency of oil. To this end, Eurostat import and export data was aggregated and visualised. The content of this web page was put together with the greatest care. No rights can be derived from it.

Energy that we use in the Netherlands but do not produce ourselves must be imported. Domestic production of crude oil is minimal in the Netherlands. This means that the EU as a whole and the Netherlands in particular has a high import dependence on crude oil. This dependence is different when it comes to refined products. Partly because of its favourable location, the Netherlands has a relatively large number of refineries and storage terminals for liquid fuels. This makes the Netherlands, together with Belgium, an international distribution hub for storage and trading refined products such as gasoline, diesel and maritime fuel (fuel oil).

This interactive map visualises the trade in crude oil and refined products of EU countries, based on Eurostat data. The map shows the net import relationships. The map reflects the import dependence of the Netherlands and the EU. The degree of import dependence differs per country and product, and may increase or decrease over time.

How to use the map: The map depicts net import flows from outside the EU in red. Net export flows leaving EU countries are shown in blue. Using the timeline at the bottom, you can select a specific period from January 2021 onwards. You can enter a selection of countries in the search box in the top right-hand corner, over which the selected products in the box on the left will be shown. By using the ‘play’ button, you will see an animation of changing import relationships. You can zoom in and out either by using the mouse or via the arrows in the top right-hand corner.

The map’s default setting is to depict net diesel imports for the Netherlands only. In this way, the map shows that the Netherlands has an exceptionally high level of diesel production relative to its domestic use. The presence of various refineries makes the Netherlands the largest diesel exporter in the EU. By removing the Netherlands from the selection box in the top right-hand corner, you will see the net import flows of diesel for all EU countries.

Where diesel is concerned, the EU as a whole has a net deficit which must be supplemented by external imports. The map shows that in 2021 and 2022 many of the EU diesel imports came from Russia. After the introduction of sanctions on Russian crude oil and refined products, there was no more direct oil trade with Russia. Diesel imports from the Middle East, the United States and India increased.

By using the selection box on the left, you can also explore the net import position of other refined products and crude oil. The Netherlands and the EU have a gasoline production surplus. Countries in North and South America and in Africa import these products from Europe, specifically from Amsterdam. You can see this by selecting ‘Gasoline’ from the list.

Technical details

Data shown on the interactive map originates from Eurostat (consulted on 4 October 2024). The data used is publicly available on the site of the European statistics office (see import and export). The Eurostat data can be revised retrospectively and is therefore always the guiding principle.

The data shown reflects the data reports from 27 EU Member States. In various countries and for most energy commodities, it is compulsory for companies to supply data. Definitions, concepts and methodologies in respect of energy statistics have been harmonised at international level. The methodology is described in the Energy Statistics Manual.

COVA performs a number of actions in order to present the Eurostat data with greater clarity on the interactive map. The most important one of these is that the map depicts net import relationships. The net import figure is calculated by deducting the monthly export figure from the import figure.

As often occurs with aggregated data, inconsistencies may arise between the import from country B reported by country A and the export to country A reported by country B. Eurostat and the reporting countries perform validation and quality tests to eliminate major inconsistencies from the reports. However, data analysis by COVA reveals that trade statistics of two countries are sometimes contradictory. For this reason, the interactive map shows trade between EU countries as reported by the net importing country.

The Eurostat energy data of partner countries by origin and destination has been reported in accordance with a predefined list of 162 partner countries. If there is no information about origin or destination of a partner country, or if this information may not be reported for reasons of confidentiality, reporting countries have classified this information as ‘not specified’. On the map, trade with the country ‘not specified’ are shown as flows to and from a spot in the Atlantic.

If you have any questions about the underlying data, please contact the statistics office Eurostat and/or the relevant government body of the country concerned.

Oil in perspective

Source: Statistics Netherlands energy balance and Statistics Netherlands energy balance by sector

By far the largest part of all energy in the Dutch energy system is intended for throughput. Only one quarter of all energy flows in the Netherlands is intended for domestic consumption; three quarters are intended for export. This is mainly because of the large refining and chemical sectors, storage capacity and trade. In this respect, the Netherlands has a unique position among other EU countries. What is more, the Netherlands has an extensive pipeline infrastructure that connects its refineries with airports and neighbouring countries.

As the largest gasoline port in the world, Amsterdam is a leading player in the oil market, with many tank storage terminals and substantial capacity for blending products in accordance with the right export specifications. The Netherlands also has a large oil storage sector. The total storage capacity for crude oil and refined products in the Netherlands is around 39 million m3. The port of Rotterdam is Europe’s largest port, the 10th largest container port in the world and among the world’s top three bunkering ports.

The aforementioned throughput is made transparent in the interactive Sankey diagram of the total Dutch energy balance. The colours represent the individual energy carriers. The thickness of each flow is proportional to the actual energy quantity. A Sankey diagram is read from left to right, with an ‘import’ flow on the left and an ‘export’ flow on the right. The diagram also includes a flow of domestic ‘production’ of energy carriers (primarily natural gas) and a ‘final consumption’ flow on the right. In accordance with the rules, international aviation and maritime bunkers are excluded from Dutch energy consumption and are therefore a separate outflow on the energy balance.

Bron: Statistics Netherlands

The Dutch economy is energy intensive. Refined products make up the largest part of final energy consumption in the Netherlands. If the supplies to the international aviation and maritime bunkers are included as well, the share of refined products is even larger than that of all other energy carriers added together. In 2023, 44% of final energy consumption in the Netherlands consisted of crude oil and refined products. This is exclusive of international aviation and maritime bunkers. Including these bunker fuels, this figure would be 56%.

The difference between energetic and non-energetic use of energy carriers is the deployment and application of these carriers. Energetic use concerns the conversion of energy carriers because of their energy content, into for instance movement, heat or light. Examples include the propulsion of trains and aircraft, the heating of homes and offices and the lighting of streets and greenhouses. Non-energetic use concerns the use of energy carriers as a raw material in, among others, the chemical industry, for instance plastics for cosmetics, nappies, PET bottles, building and insulation materials, medical aids and protective equipment and clothing.

In the Dutch energy system, primary energy carriers (such as crude oil, biomass, gas and coal) are converted into secondary energy carriers (such as electricity, refined products, heat, etc.). Final energy consumption concerns energy carriers consumed directly by the end user. Primary energy carriers may be used directly (such as biomass in a pellet stove, gas for heating or solar panels for electricity), but may also be converted into other energy carriers (such as gas for the production of electricity or biomass for the production of renewable bio-ethanol). The above pie chart shows the final energy consumption, whereby the share of electricity is party produced with renewable energy. See also the Sankey diagram above. Also refined products include renewable components (such as bio-ethanol in E10 gasoline).