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IHS Markit: 2020 low-sulfur requirements for marine bunker fuels causing scramble for refiners and shippers

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On 27 October 2016, the International Maritime Organization (IMO) announced that beginning on 1 January 2020, the maximum sulfur content allowed in marine bunker fuel will be reduced from 3.50% mass by mass (m/m) to 0.50% m/m (35,000 ppm to 5,000 ppm)—five years earlier than many expected. The two industries are vastly unprepared.

Mariner 150
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US offshore oil and gas leasing plan for 2017-2022 focuses on Gulf of Mexico, excludes Arctic

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The OCS Lands Act requires the Secretary of the Interior to prepare a Five-Year Program that includes a schedule of potential oil and gas lease sales and indicates the size, timing and location of proposed leasing determined to best meet national energy needs, while addressing a range of economic, environmental and social considerations.

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GE and Sargas AS partner on gas-fired plants with carbon capture for enhanced oil recovery

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GE has concluded a commercial alliance agreement with Norway-based Sargas AS to provide a gas turbine for one of the world’s first gas-fired plants with integrated carbon capture for enhanced oil recovery (EOR). Sargas is fortunate in being able to partner with best-in-class industrial giants including DSME of Korea. Source: Sargas.

Oil 220
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EIA: light duty vehicle energy consumption to drop 25% by 2040; increased oil production, vehicle efficiency reduce US oil and liquid imports

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Energy consumption by marine vessels increases from 0.9 Domestic crude oil production increases sharply in the AEO2014 Reference case, with annual growth averaging 0.8 Some other key findings of the AEO2014 Reference case include: Low natural gas prices boost natural gas-intensive industries. quadrillion Btu in 2012 to 1.0

Oil 290
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Survey finds LNG-fueled ship orders up 26% in six months

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Following a world survey of the marine industry, Zeus Development Corporation has identified 63 LNG-fueled ships in operation or under development, up from 48 units last December. High oil prices, impending emissions regulations and technical advancements are propelling the market faster than we expected.

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Hyundai Heavy begins exporting LNG engine

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Hyundai Heavy Industries (HHI), the world’s biggest shipbuilder and a leading marine engine manufacturer, has begun exporting the gas engine Hyundai HiMSEN H35/40GV after completing test runs. The new gas engine runs on liquefied natural gas rather than heavy crude oil and has a maximum power output of 13,000 bhp (9,694 kW).

Hyundai 240
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IHS Markit: shippers, refiners scrambling to respond to IMO signals on low-sulfur fuel enforcement

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In 2016, the IMO confirmed that global refiners and shippers would have to comply with these new environmental regulations five years earlier than many anticipated, which sent tidal waves through two industries that typically take many years to adapt to such significant change. Such a move would be a significant deterrent to non-compliance.

Fuel 170