US shale oil? Here you come again ...
Now this from Valero via ArgusMedia -- this is simply incredible and helps explain the optimism in Exxon's investor day presentation:
New restrictions next year on the amount of sulfur in global marine fuels should lift export demand for US oil shale production, US independent refiner Valero said today.Less complex European refiners would seek out the much lighter, sweeter US production to avoid higher sulfur residual sold today into the marine bunker fuel market, Valero chief operating officer Lane Riggs said at the Bank of America refining conference in New York.
Marpol treaty signatories representing more than 96pc of global shipping have agreed through the International Maritime Organization (IMO) to reduce sulfur emissions beginning 1 January 2020 to 0.5pc sulfur fuel, down from today's 3.5pc. The change, known as IMO 2020, slashes demand for higher-sulfur, less-processed distillates sold today into the marine fuel fleet.
US refiners expect the rules to boost distillate demand beginning in the second half of this year and create competing sour feedstocks to supply cokers and other complex equipment.
The rule will also create competition for vacuum gas oil and other, lighter and sweeter crude residuals as blendstocks for marine fuel, Riggs said. Availability of such blends would vary widely by region. But the earliest days of compliance will mean relying on more consistent and readily available light sulfur diesel production, Riggs said.
Wow, one forgets how really distinctive / beautiful her voice was. Play it loud with Bose headphones (I no longer have Bose headphones -- I use the $10-throw-away Walmoart headphones because I keep losing them or breaking them carrying them in my backpack while biking).