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Impact of the International Marine Organization’s Global Fuel Sulphur Limit Reduction
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 Export to Your Calendar 2018-10-26
When: Friday October 26-2018
11:30-01:00 PM
Where: Calgary Petroleum CLub
Canada
Contact: Jill Sugars
403-269-1755 ext 300


Online registration is available until: 2018-10-26
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Impact of the International Marine Organization’s Global Fuel Sulphur Limit Reduction on the Canadian Heavy Oil Industry

The International Marine Organization’s (IMO) recent regulation initiative has set a global limit for sulphur in fuel oil used on board ships of 0.5% m/m (mass by mass) from the current 3.5% starting January 2020. This corresponds to an 86% reduction in the amount of sulphur oxide emanating from ships.

As Canadian heavy oil supply is generally rich in sulphur, how can this regulation impact the Canadian oil and gas industry?

Marine traffic volume has increased tremendously in the past decades because of increasing international trade and globalization. The side effect associated with this trend is the increase in marine fuel consumption and consequently, an increase in greenhouse gas emissions and pollutants such as sulphur and nitrous oxides (SOx and NOx).

Ship’s bunkers provide the last bastion of sulphur in transportation fuels and present refiners the greatest difficulty in removing sulphur from this very refractory stream. It is estimated that a large cargo ship emits more SOx pollution than 50 million diesel based automobiles. Emission Control Areas (ECAs) are already in place in North America and Europe in which stringent regulations on nitrogen and sulphur-based pollutants have been applied.  For example, within 200 nautical miles of the shores of Canada and the United States, a 0.1% SOx limit has been in force since 2015.

The presentation will focus on the upstream sector but will also touch upon refining and shipping industry to present a broad perspective of the regulation impact intricacies. The presentation will encompass:

· Impacts on the Canadian oil upstream: heavy oil price differentials, demand, emerging technologies for reducing crude oil sulphur content

·Impacts on global and North American bunker fuel markets, particularly supply, demand, regional price differentials and spread between high/low sulphur bunker fuel and crudes

·  Impacts on the shipping industry: assess shipper cost burdens due to the switch to a low sulphur fuel that meets the IMO requirement.

·  Impacts on the refining sector: quantify potential cracks spread and refining margins

·  Potential new technology deployments in the heavy oil production in Canada and bunker fuel combustion processes

 

Allan Fogwill

President and CEO

Canadian Energy Research Institute

 

Allan Fogwill joined the Canadian Energy Research Institute (CERI) in November 2014 as President and CEO.  An energy sector executive with over 25 years’ experience in both the public and private sector, Mr. Fogwill’s background has focused on economic and market analysis of energy sector issues along with policy development related to energy regulation and efficiency issues.

 

Mr. Fogwill has previously worked for natural gas distribution companies in BC and Ontario and the Ontario Energy Board dealing with market analysis and the analysis of distribution costs.  Before assuming his role at CERI, Mr. Fogwill provided regulatory consulting services to local distribution companies in Ontario.

 

Allan has a Master’s degree from Simon Fraser University in Natural Resources Management and a Bachelor of Science degree from the University of Saskatchewan in Geography.  He has also served as the Chair and CEO of the Canadian Energy Efficiency Alliance and the Canadian Gas Research Institute. 

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