• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 2 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 23 mins Would bashing China solve all the problems of the United States
  • 27 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 33 mins Model 3 cheaper to buy than BMW 3 series.
  • 5 hours China to Impose Dictatorship on Hong Kong
  • 1 hour Incompetent "Journalists"
  • 1 min Can I Sue This Site for If People Post Inaccurate Information?
  • 6 hours Thugs in Trumpistan
  • 41 mins Pompeo's Hong Kong
  • 20 hours Iran's first oil tanker has arrived near Venezuela
  • 21 hours Let’s Try This....
  • 23 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 1 day HVDC Cheaper Than Low-carbon Natural Gas
  • 12 hours 60 mph electric mopeds
  • 1 day Oil and Gas After COVID-19
$30 Oil Isn’t Good Enough For U.S. Shale

$30 Oil Isn’t Good Enough For U.S. Shale

Oil prices and energy stocks…

Oil Slides As Russia Plans To Raise Production

Oil Slides As Russia Plans To Raise Production

Reports that Russia plans to…

U.S. Refiners Gear Up For Busy Overhaul Season

American refiners are preparing for a busy overhaul season in the second quarter of the year as the entry into effect of the new International Maritime Organization’s emission rules approaches.

Reuters cites data from the Energy Information Administration that total U.S. production of refined production has fallen 8.5 percent since the start of the year, suggesting it has yet to fall further. The aim is to avoid the need for maintenance closures ahead of winter this year.

The new IMO emission rules cap sulfur emissions from bunkering fuel at 0.5 percent, which is a substantial reduction on the current 3.5-percent cap. As a result, refiners have raced to prepare for the demand for new, lower-sulfur fuels.

Many see the upcoming changes as the most important to hit the refining industry in quite a while. Last month, the International Energy Agency said in its annual Oil 2019 report, “The 2020 IMO marine regulation change is one of the most dramatic ever seen to product specifications, although the shipping and refining industries have had several years notice.”

In the immediate term, this spells even higher gasoline and diesel prices for U.S. drivers, adding to a 26-percent increase in gasoline prices at the pump since the start of 2019.

“They will push (winter) turnarounds later into 2020 to take advantage of that margin bump from the switch to IMO 2020,” an associate at IHS Markit told Reuters, commenting on refiners’ plans to move maintenance and overhauls to the second quarter of the year.

Reuters notes that usually, the second quarter is the time when refiners increase their output of gasoline and diesel in anticipation of peak demand season during the summer. This year, however, according to IHS Markit’s Susan Bell, as much as 1 million bpd in refining capacity could be shut in for maintenance. This will certainly push prices even higher.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

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