Let it Burn

10 Jul 2015: It seems as though the fuel oil industry has not caught a break yet this year…and may not for the rest of the 2015. Global residual fuel oil demand continues to decrease from the current level of 8 million bpd, as normally high-sulfur fuel becomes increasingly unpopular due to environmental regulations, with fuel oil production on track to fall by more than 1 million bpd through 2020. In fact, just this January, MARPOL implemented its expansion of environmental regulations in ECA (Emission-Controlled Areas), reducing maximum sulfur emissions from fuel for ships traveling within 200 miles offshore in North America and the Baltic and North Sea to 0.1%, down from 1%, according to IMO rules. Now, most affected ship owners are using marine gasoil (diesel), a middle distillate low-sulfur fuel, in these coastal zones, with many others starting to look to the fuel as a viable alternative to residual fuel oil. Download here