Oil refinery strikers take their toll on French gas stations ahead of the European Soccer Championship

A bill passed by French President Francois Hollande’s government that would make hiring and firing easier in France has met with strikes from French union CGT, whose members include oil refinery workers.

Six of the eight major refineries in France are either completely shut down, or producing at reduced levels, reports Marine Link, as strikes block oil terminals and fuel depots.

The dramatic drop in operating refining capacity has led to fuel shortages in France’s gas stations. An estimated 40% of gas stations around Paris and 20% of stations nationwide have supply problems. Of the 12,000 gas stations in France, 820 were completely out of fuel last Sunday, and another 800 lacked at least one type of fuel according to French Transport Secretary Alain Vidalies.

French strikes are now affecting six out of eight major French refineries

With the European Soccer Championship set to start June 10, the shortage of fuel, along with striking railway operators, could spell trouble as France sets to host an influx of soccer fans. More than 3.5 million tickets were requested for matches set to take place in June when they went on sale at the beginning of the year.

France may see another 25% spike in imports if 2010 strikes are any indication

The French government is currently drawing on its strategic fuel reserves to supply gas stations as the CGT union calls on port workers to stop working, making it increasingly difficult to supply the country with both crude oil and refined products. So far, the impact to the tanker market has been limited, but the last time the country’s refinery workers walked out, France saw a 25% increase in refined product imports the following month.

French fuel imports following 2010 strikes

France also had more refining capacity in 2010 – 1.7 MMBOPD compared to 1.4 MMBOPD currently. Its lower refining capacity could require France to import more fuel this time around.

Negotiations in Norway breakdown almost immediately

France may not be the only European country to feel the effects of a strike in the oil and gas industry, however. Norway’s oil companies and the industry’s biggest union had set aside two days to negotiate over wages for offshore workers. Instead, talks broke down after less than a minute, reports Bloomberg. A strike from Norway’s offshore producers could have an immediate impact on output.

“The situation is the most deadlocked in a long time,” Leif Sande, leader of the Industry Energy union, said about the talks that broke down on Monday. “The differences were so obvious so early on that it was just as well to make an appointment with the National Mediator right away rather than sit here for two days.”

Norway’s oil producers are hoping to change the model for wage increases for offshore workers, which is separated from economic fluctuations like the downturn in oil prices. Neither oil companies nor rig owners offered a wage increase, while the unions want to negotiate based on a benchmark accord between employers and workers in export-exposed industries reached earlier this year, said Sande.

No date has been set for state-backed mediation. Industry Energy, which covers more than half of Norway’s 7,500 union-affiliated offshore-platform workers, said 190 of its workers would strike if a deal in not reached. SAFE, a smaller Norwegian union, said as many as 2,456 members could walk out. It was not immediately clear which rigs or production ships the strikes would affect.


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