by toolpush » Sun 27 Aug 2017, 02:31:51
I am not sure if any body here realises, but new pollution regulations are coming into effect that lower the amount of sulphur emissions with in zones around the US, Canada and Europe. This will require ships burning bunker C, the need to install scrubbers, burn MGO (Marine Gas Oil) 500ppm sulphur or LNG. Due to cheap oil at the moment, the MGO is the popular route, though a lot of ships that spend most of their time in the control zones are converting/ being built to burn LNG.
The new regs will be an issue for the shipping companies to work out, but the oil refineries will also have an issue as well. The shipping industry has for years been the garbage disposal for the crap that is left over from the refinery process. As the use of Bunker C decreases, the oil refineries will need to find another outlet, or install more equipment to upgrade this crap into something usable. Of course Saudi can continue importing Bunker C to burn in their power stations to free up more crude to sell on the world market.