Cleaner fuels, new fuels

27 February 2013

Environmentally driven changes to shipping fuels will bring big upheavals for the world’s refiners

WORLDWIDE, maritime transport uses about 370 million tonnes a year (t/y) of bunker fuel of all types, accounting for about 9% of world oil consumption. For many refiners, earning their revenues from light streams, bunker fuel is little more than a by-product - but shifts in shipping fuel specifications, together with the possible introduction of new fuels, will force changes to that relationship. Heavy investments will be needed if refiners are to continue to make what has always been a low-margin product. Environmentalists say the shipping business has avoided much of the clean-up legislation of the past several decades, in which period the sulphur content of road fuels has been reduced to virtually zero in many countries. Ships burn their fuel in international waters, and sometimes also buy it from tankers moored in international waters, so legislation can be difficult to agree and enforce....



Please log in to read the rest of this article or if you are new to Petroleum Economist, take advantage of one week's free access and register here

If you have any queries about your account or problems registering please contact Alastair Noakes on +44(0)20 7779 8007 or anokaes@petroleum-economist.com

Login here


You must login to your account to read the rest of the article.


Login

Register here


Create your online account to gain 7 days FREE access 

Register



 

Latest issue: September 2014

Geopolitics on the back burner

Rosier-than-expected fundamentals are easing oil prices – for now


View online now