So. Who knew? Not me…… But then I live under a rock. (And love it).
“The ‘biggest change in oil market history’ is less than six months away.”
Screamed the headline. I just had to read it right… I mean, wot? Bigger than electric cars? Bigger than peak oil? Bigger than ethanol in gasoline?
Yeah. Seems so.
Tens of thousands of ships sailing the world’s oceans burn more than 3 million barrels of sludge-like high-sulfur fuel every single day. But, starting next year, the shipping industry will have to comply with rules that should dramatically reduce sulfur emissions.
“It is the biggest change in oil market history,” Steve Sawyer, senior analyst at energy consultant Facts Global Energy, told CNBC.
“It is going to affect crude oil producers, traders, ship owners, refiners, equity investors, insurance companies, logistical businesses, banks… Who’s left? I’m struggling to think of anyone it might not affect. That’s why it is a huge transition,” Sawyer said.
I recommend that you read the rest of the article.
“It is an enormous switch. If you considered shipping alongside all of the oil consuming nations, it would be number four or five on the list — so it is an enormous amount of consumption,” Anthony Gurnee, CEO of Ardmore Shipping, told CNBC’s “Squawk Box Europe” last week.
So. I am taken back a bit, this snuck up on me a touch. Ok, a lot. I am all for clean fuel, but wow, this really could turn things upside-down a bit. The sort of volumes they are talking about can not be downplayed. Somewhere, many many automation engineers are heading for some sleepless nights…. Along with a few bean counters.