Impacts of Implementing the Fuel Quality Directive on the Competitiveness of the European Union Refining Sector, European Security of Supply, and Global Greenhouse Gas Emissions

By means of this RFP, NRCan is seeking proposals from bidders to examine the impacts of the fuel quality directive (FQD) on the European Union’s (EU) energy security of supply, the EU refining sector, and global greenhouse gase (GHG) emissions. It will model three EU supply-demand scenarios: i) in the absence of the FQD (i.e., the base case), ii) under the proposed February 2012 regulation, and iii) under a single average EU default value, where the single default value is built upon actual emissions of every crude oil stream.

Using these scenarios, the study will estimate the impacts of the measure on EU refining margins, and implications for the EU refining sector, more broadly. The study will also forecast the impact of the FQD on global trade patterns of crude oil products and examine the impact of any distortion of global crude oil and products markets on global greenhouse gas emissions.

The period of the contract shall be from contract award until June 2, 2015.