January 1, 2020, marked a big change for marine vessels. The IMO (International Maritime Organization) has implemented a significant reduction in the sulfur content for the shipping industry in 2020. The reduction brings the previous 3.5% sulfur content (bunker fuel), plummeting down to the new 0.5% sulfur requirement. Goldman Sachs estimates the monetary impact could be as much as $240 billion during the 2020 calendar year.
Recent drone attacks have wreaked havoc on the Saudi Aramco oil facilities along with imposed sanctions on Venezuela and Iran. These events should all be pointing one direction for the crude prices…..up. Instead of the anticipated price increase, the recent fear of recession has helped keep the market in check.
Clean energy being a hot topic, the Pennsylvania Department of Energy has issued grant's totaling just shy of $2.7 million in an order to push cleaner energy alternatives. These grants are to help business owners cover the costs of swapping over to CNG powered vehicles. The quest is to find a cleaner burning alternative to gasoline and diesel fuels. This grant assistance is estimated to cut gasoline consumption with 17 participating businesses by approximately 1 million gallons annually, and reduce emissions by 2,800 tons.
The International Maritime Organization (IMO) impending regulation change might not grab headlines like the Iran sanctions or the Venezuelan economic crisis have; but some experts feel it will have a large impact on crude oil prices in less than 1 ½ years. On January 1st 2020, the IMO is set to enforce that marine vessels can only burn low sulfur diesel. This restriction is in place to reduce carbon emissions globally.