“We are prepared for the worst-case scenario. Repsol is prepared to supply the Spanish economy with the products we produce. When I talk about the worst-case scenario, I am referring to a worsening of the situation in Hormuz. I am not saying that will happen. It would be very positive to see a solution in the short term.” This is the warning Josu Jon Imaz issued this Thursday during the conference with analysts to present the first-half results, in which the company’s profit soared due to rising oil prices and an increase in the volume of its reserves.
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The company’s CEO acknowledged to analysts that he does not have additional information to theirs about what may happen in the future regarding the situation in the Strait of Hormuz, but he is clear about what the company must do in the face of the situation. “I have to guarantee that our refineries do not have problems with the supply of crude oil, intermediate products, etc. I must ensure that our refining process continues without interruptions,” he noted.
What Imaz has confirmed is that Repsol is seeing “a very strained product market in which Europe could have problems supplying diesel and kerosene in the coming months. Faced with this situation, Repsol has increased its provisioning in recent months to ensure that the Spanish economy and, specifically, the aviation sector are not affected by this tension, to prevent it from harming tourism in a strategic year for Spain, as it is the most benefited country because international tourists choose our country as a safe destination to avoid tension in the Middle East. “We have a firm commitment to Spanish society and the Spanish economy. Tourism is very important for Spain and for its gross domestic product,” Imaz noted.
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Effort to cover tourism needs
The executive assured that Repsol has sufficient storage and production capacity to guarantee that all kerosene to be used in Spain during the year can be supplied within Repsol’s corresponding quota. We could even have a surplus of 30% of our production, which could be used to supply kerosene to potential customers or suppliers who might run out of product.
“So we are prepared for the worst-case scenario. Seeing what is happening in terms of tension in the European jet and diesel market, I will not hide that I am very concerned about the capacity we will have in Europe to ensure the supply of products in some countries,” the executive conveyed.
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