IMO 2020 to beckon in a new reality
The new regulations are poised to change shipping markets forever. Some participants may handle the new regulatory environment better than others
IMO 2020 will radically change shipping market supply/demand dynamics. The basis of the new regulations is simple–to reduce sulphur emissions by tightening the requirements around allowable fuels any given seagoing vessel can burn. In technical terms, this means cutting sulphur content to 0.5pc, down from 3.5pc at present. High sulphur fuel oil (HSFO) demand will, in part, be forced to shift towards cleaner alternatives, namely marine gasoil and low sulphur fuel oil (LSFO). LNG is also an option, albeit uptake will be limited. Advantage West Africa A barrel of crude oil is associated with a wide variety of classifications that can range from light-sweet (thin, low sulphur) to heavy-sour (d
Also in this section
9 April 2026
The April 2026 issue of Petroleum Economist is out now!
9 April 2026
Offshore operators are working through an FID backlog as the rig market consolidates, helped by improving project economics and a renewed security drive
2 April 2026
Alongside a rapid continued build-out of renewables, China’s latest five-year plan stresses the value of domestic hydrocarbon production for energy security and calls for increased Russian gas imports
2 April 2026
The government is taking important steps to revive domestic production, lift investment and benefit from the geopolitical crisis even if more needs to be done in the longer term
