According to the French oil industry association UFIP, the decline of the French refining industry is accelerating, with an average utilisation rate of 79% and low refining margins (€22/tons, when the breakeven point is rather €30/ton). Since 2009, the refining sector has lost €3.5bn, or €700m/year on average. The UFIP estimates that the strong increase in refining margins (€45/t in the first two months of 2015) will not last due to overcapacities. Despite an 11% drop in refining capacity between January 1, 2007 and January 1, 2015, overcapacities in Europe are estimated at 100 Mt/year. By 2040, 25% to 30% of the 79 European refineries should be closed (20 to 30 facilities). In 2015, four refineries will close (two in the United Kingdom, one in Switzerland and one in Italy), not including the 5.5 Mt/year Berre refinery in France (currently mothballed). Total plans to halve the capacity of its Lindsey refinery in the UK by late 2016 and to convert its 153,000 bbl/d refinery in La Mède (France) to a biofuel refinery.
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