• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 17 hours One Last Warning For The U.S. Shale Patch
  • 4 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 3 hours Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 13 hours Modular Nuclear Reactors
  • 22 hours Chile Tests Floating Solar Farm
  • 4 hours Poll: Will Renewables Save the World?
  • 2 days China's E-Buses Killing Diesel Demand
  • 2 days Trump sells out his base to please Wallstreet and Oil industry
  • 1 day China's Expansion: Italy Leads Europe Into China’s Embrace
  • 2 days Trump Tariffs On China Working
  • 2 days Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 2 days Biomass, Ethanol No Longer Green
  • 1 day US-backed coup in Venezuela not so smooth
  • 1 day New Rebate For EVs in Canada

The Real Influence Of IMO 2020

LNG terminal

If ship owners, oil refiners and traders had been hoping for a stay of execution concerning the International Maritime Organisation’s (IMO) impending rule on sulphur limits in bunker fuel, they will have been sadly disappointed October 26.

Rather than accept proposals designed to ease the shift from 3.5% to 0.5% sulphur in marine fuel from January 1, 2020, the IMO instead tightened compliance by adopting a ban on the carriage of non-compliant fuels in ships without exhaust scrubbers.

It means that the huge oil market shake up that is ‘IMO 2020’ is going full steam ahead on schedule, and that compliance – a factor with significant bearing on its impact – will be at the higher end of expectations.

But is a seemingly small regulatory change in an industry far from the public view really such a big deal?

Yes. Various estimates suggest IMO 2020 will involve a transfer in value of over $1 trillion between 2020-25. On the winning side: refiners, low sulphur crude producers, oil-fired power generators and some industrials; on the losing side, freight carriers, high sulphur crude producers and consumers.

The change in specifications is global. Bunker fuel usage is around 5-6 million b/d, roughly 6-7% of the world oil market. Not only that but 0.5% sulphur fuel oil is a new product. Refiners have to reconfigure their kit to produce it, while ship owners will be running it through engines unused to the new specifications.

Preparation…




Oilprice - The No. 1 Source for Oil & Energy News