In Raymond James 10-22-2018 revised oil price forecast, RJ lists IMO 2020 as the 3rd step that takes Brent to $100/bbl and WTI to $85/bbl by Q4 2018. There has been some "noise" that President Trump want to delay implementation of IMO 2020. The U.S. has very little say in this matter because there are very few vessels registered in the U.S. Plus, we already have strict rules for burning high sulfur fuel within our waters.
Vector Energy (VNTR) will benefit from IMO 2020 and the benefits have already started. The slides that Vector's CEO spoke from at our luncheon are now on our website.
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NEWS:
The adoption of a ban on the carriage of bunkers above 0.5% sulfur looks set to go ahead despite a number of countries seeking a delay, the International Bunker Industry Association, or IBIA, said on its website Wednesday.
Oil— 25 Oct 2018 | 08:09 UTC—
Singapore: IMO's high sulfur carriage ban remains on track for March 2020: IBIA
The 73rd session of the Maritime Organization's Marine Environment Protection Committee, or MEPC 73, discussed a proposal from Bangladesh calling for a delay to implementing the carriage ban, citing concerns about the availability, safety and cost of compliant fuels, IBIA said.
The proposal said the ban should not be adopted "until the economic availability and sufficient supply of low sulphur fuel oil is ensured" with a particular emphasis on the damaging effect of the expected cost increase.
However, a majority of countries attending MEPC 73 expressed support for adopting the ban and for it to take effect from March 1, 2020, IBIA said.
"We sympathize with the fears of developing countries, the least developed countries and small island developing states that higher transport cost may have a negative impact on their economies," IBIA said in a statement to MEPC 73.
"Industry planning and preparations are already well underway with substantial investments being made both in the refinery sector and among shipowners to meet the 2020 deadline. If we move the target now, those preparations will be thrown into disarray," IBIA added.
The indication that a clear majority of countries want the carriage ban to go ahead without delay shows the commitment to make this regulation a success.
"We do understand fears that there could be insufficient availability of good quality compliant fuels. However, ships that encounter genuine non-availability situations should be able to use the standardized fuel oil non-availability report to be developed by IMO in line with Regulation 18.2 of MARPOL Annex VI to prove that they were unable to obtain compliant fuel," IBIA said.
Formal adoption is expected once the regulatory text, being finalized by a drafting group, is presented to the Committee in the plenary on Thursday or Friday, IBIA said.
Last week, the Trident Alliance, a coalition of shipowners and operators who share a common interest in robust enforcement of maritime sulfur regulations, had also said that the adoption without delay of IMO's 'Carriage ban' on non-compliant fuel was critical to the successful implementation of the 2020 global sulfur cap rule.
The carriage ban on non-compliant fuel strengthens the hand of enforcement authorities by removing the requirement to prove that a vessel has been using non-compliant fuel, it said in a statement on October 19.
Just having it in any fuel tank on board, unless the vessel has a scrubber, will be a breach of the regulation.
"The Trident Alliance stands firm on the need for robust and effective enforcement and views the carriage ban on non-compliant fuel as a very strong tool to secure that outcome," Trident Alliance Chair, Roger Strevens had said then. -- Surabhi Sahu, surabhi.sahu@spglobal.com
-- Edited by Elizabeth Thang, newsdesk@spglobal.com
https://ibia.net/mepc-73-imos-high-sulp ... arch-2020/
RJ: IMO 2020 is a "Game Changer"
RJ: IMO 2020 is a "Game Changer"
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group