Twenty Wells Yet To Be Reported This Week -- December 26, 2019

Active rigs:

$61.16	12/26/2019	12/26/2018	12/26/2017	12/26/2016	12/26/2015
Active Rigs	56	68	53	41	62

Twenty wells yet to be reported this week: see this post.

RBN Energy: IMO 2020 finally arrives, not with a bang, but a whimper. Color me surprised. LOL.

It’s been more than three years since the International Maritime Organization (IMO) fully committed to the January 1, 2020, implementation of IMO 2020, a rule that slashes the allowable sulfur content in bunker fuel used in the open seas around most of the world from 3.5% to only 0.5%.

There’s been a lot of angst in the interim, most of it regarding the changes in crude slates, refinery operations and fuel blending needed to meet a flip-of-a-switch spike in global demand for low-sulfur bunker. Also, shippers worried that prices for rule-compliant fuel would go through the roof. Well, it turns out that the transition period in the months leading up to the IMO 2020 era has been largely drama-free. Supplies of very low-sulfur fuel oil (VLSFO) and marine gasoil (MGO) — the bunker most ships will now use — have been building in most places, prices are up but moderating, and while there may be a few hiccups as ships shift to new, cleaner fuels, life will go on. Heck, life will likely be even better for most complex U.S. refineries, which can churn out large volumes of low-sulfur refined products and which will have access to price-discounted high-sulfur “resid” as an intermediate feedstock.

Today, we take a big-picture look at the global bunker market as IMO 2020’s implementation day approaches.