Refiners over a barrel?
Challenges and costs increase as ageing oil fields reach the ‘babushka’ stage
When the International Maritime Organisation (IMO) set in motion the changes to its international convention for the prevention of pollution from ships, or Marpol, to move the sulphur standard for marine bunkers from 3.5pc to 0.5pc, it probably believed that the timeframe would smooth the path for the change that is taking place on 1 January 2020. But, in reality, that neither oil refining companies nor ship owners have invested heavily enough should not be a surprise, given the costs entailed and the uncertainty of any investment paying back. Meeting the change in sulphur specification is not simple and prices are responding to the distortion that is being created in global supply/demand
Also in this section
27 January 2025
Regional state-owned firms are transforming their strategies and leveraging their resources to position themselves as clean energy powerhouses, and to ensure they maintain influence in a low-carbon world
27 January 2025
Asian neighbours seek resolution on territorial dispute for hydrocarbons development that has spanned decades
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
