Post Tagged with: "IMO 2020"

Source: Reuters

Factbox: IMO 2020 – a major shake-up for oil and shipping

Reuters Tougher rules on sulphur emissions from ships will come into effect next year in the biggest shake-up for the oil and shipping industries for decades. IMO 2020 From January 2020, United Nations shipping agency the International Maritime Organization (IMO) will ban ships from using fuels with a sulphur content above 0.5%, compared with 3.5% now. The regulations are aimed at improving human health by reducing air pollution. Only ships fitted with sulphur-cleaning devices known as scrubbers will be allowed to continue burning high-sulphur fuel. Ship owners can also opt for other sources of cleaner fuel such as liquefied natural gas (LNG). Failure to comply with the global regulations will result in fines or vessels being detained and in some jurisdictions the risk of imprisonment, which could affect vital requirements such as insurance cover. Enforcement will be policed by flag and port states rather than the IMO and industry officials[Read More…]

December 13, 2019 - 1:00 pm Closing Bell Story, Energy News, Regulatory
Source: SEACOR

Galveston Company Enters Race to Supply IMO 2020 Fuels

From The Houston Chronicle With a massive shift in the marine fuel market just months away from implementation, a Galveston fuel storage operator says it plans to operate a 50,000 barrel a day crude processing facility to meet new stricter environmental regulations set to take affect in January. Texas International Terminals confirmed Wednesday reports from Reuters that it plans to launch a crude processing facility to produce low sulfur fuels compliant with the so-called IMO 2020 marine fuel rules. IMO 2020 is considered one of the biggest disrupting forces to hit the refining and shipping fuel markets in years. The new international marine laws will require ships to use cleaner fuels with sulfur content of just 0.5 percent, down from the 3.5 percent sulfur content allowed today. Texas International Terminals will operate a crude distillation unit in Galveston that will be supplied with bunker fuel and marine gas oil from[Read More…]

Source: XOM

With an Eye on Trump, Refiners Tout Clean Fuel Rule as U.S. Win

From Bloomberg U.S. oil refiners, in line for a windfall from new ship-fuel rules, are taking steps to lock in the change quickly, concerned it could fall victim to President Donald Trump’s re-election push. Under the new rules, many shippers will switch to low-sulfur fuels, boosting competition and, potentially, increasing the price of diesel, jet fuel and heating oil. The U.S. Energy Information Administration forecasts that the effect will be “most acute” in 2020, just as the presidential campaigns kick into high gear. Over the last decade, U.S. refiners have invested heavily in the switch to cleaner fuels, giving them an edge over rivals ahead of the change, set to begin in January. After speculation surfaced last year that Trump might seek to delay the new standards, refiners are now aggressively touting their potential to increase U.S. fuel exports. It’s a message “likely to appeal to the Trump administration’s interest[Read More…]

April 10, 2019 - 4:53 pm Closing Bell Story, Crude Oil News, Energy News
Shipping Comes to Terms With $50 Billion Clean-Fuel Bill

Shipping Comes to Terms With $50 Billion Clean-Fuel Bill

From The Wall Street Journal The introduction of low-sulfur fuels in oceangoing vessels next year will mark the biggest change in ship propulsion since the maritime industry moved from coal to heavy oil early in the 20th century. The compulsory switch on Jan. 1, 2020, will affect at least 60,000 vessels and is estimated by shipping executives to cost up to $50 billion industrywide. It is a financial burden that has triggered a noisy debate and warnings over the quality and availability of the new fuels and crushing new costs along with calls to delay the new rule. With eight months to go, however, preparations are in full swing and the doomsday predictions are dissipating as more fuel providers set up depots and distribution sites. General agreement also is spreading in the shipping world that customers will have to bear the higher costs across supply chains as long as carriers[Read More…]

April 4, 2019 - 5:35 pm Closing Bell Story, Crude Oil News, Energy News
2020 Fuel Rules Are Already Impacting the Oil Industry

2020 Fuel Rules Are Already Impacting the Oil Industry

Low sulfur shipping fuels will be felt throughout the industry By Richard Rostad, analyst, Oil & Gas 360 One doesn’t need to wait until January 1, 2020 to see the effects of the International Maritime Organization’s (IMO) upcoming sulfur regulations. While the rule takes effect on the first day of 2020, its effects are already being felt and will only become more obvious as the year progresses. The IMO 2020 regulation will drastically limit sulfur content in marine fuels, dropping the permissible limit from 3.5% to only 0.5%. While this rule has been on the books since 2008, it has only been widely noticed in the last two years, when refiners and shippers started to contemplate the implications of the shift. Shippers have op… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

Low Sulfur Rule May Cost Saudis and Neighbors Billions

Low Sulfur Rule May Cost Saudis and Neighbors Billions

From Bloomberg The world’s biggest oil-exporting region may lose billions of dollars in annual revenue when an obscure United Nations requirement for ships to burn cleaner fuel takes effect next year. Saudi Arabia, Iraq and other Middle Eastern suppliers of heavy, high-sulfur crude could take a hit as refiners favor lighter, low-sulfur grades that they can process more easily into less-polluting fuels. The UN maritime agency’s new rule kicks in on Jan. 1, and estimates of the possible price impact vary widely. Revenues could drop by $5 a barrel starting in the second half as refiners and shippers prepare for the change, Citigroup Inc. says. Some traders expect a less dramatic slide, but even Saudi Energy Minister Khalid Al-Falih, whose country ships more oil than any other, sees a $1 reduction for some grades. A shift in demand away from more viscous and sulfurous — or “sour” — crudes would[Read More…]

March 26, 2019 - 4:30 pm Closing Bell Story, Crude Oil News, Energy News
IMO 2020 Could Trigger Refinery Closures Outside U.S.

IMO 2020 Could Trigger Refinery Closures Outside U.S.

From the Houston Chronicle As the global refining industry readies for the shipping industry’s shift to cleaner-burning marine fuels, analysts are warning that not all refineries are ready for what could be one of the biggest regulatory shocks to the refining industry in decades. While the shift could force some refineries abroad to close in the wake of a glut in heavier bunker fuels, most U.S. refineries will escape that ill fate, analysts speaking at the American Fuel and Petrochemical Manufacturers conference in San Antonio said this week. The International Maritime Organization low sulfur fuel mandates, set to take effect in 2020, will force shippers to burn low-sulfur bunker fuels in effort to curb pollution. That will have a ripple effect on the entire refining industry, as demand for low-sulfur fuels, diesel, marine gasoil and lighter crude oil spikes. As the world moves to low-sulfur fuels, market for heavy sulfur[Read More…]

March 22, 2019 - 5:44 am Closing Bell Story, Downstream