ILMA Compoundings - October 2018 - 30
Rough Seas Ahead
New maritime fuel regulations could alter base oil prices
By Mindy Long
B
eginning Jan. 1, 2020, regulations put forth under
the International Maritime Organization (IMO)
will require all ships to burn 0.5 percent-maximum
sulfur marine fuel, and in order to make the fuel, refiners
are going to have to make changes to their processing. Those
changes could alter the current base oil market, affecting
both supply and prices.
"IMO 2020 is a very big deal to the overall refining
landscape. The major refiners, like they always do, will
adapt to the change in demand," said Lance Puckett, senior
vice president of global lubricant sales for Ergon, based in
Jackson, Mississippi.
Stephen Ames, managing director of SBA Consulting,
said the new sulfur limits will require a rebalancing in the
global refining industry. "How does that impact lubricants
or base oils? Collaterally," he said, adding that the changes
could impact Group I base oil production the most, with
minor, if any, impact on Group II or Group III base oils.
30
OCTOBER 2018
| COMPOUNDINGS | ILMA.ORG
Refineries will need to re-evaluate their crude diet to
reduce production of high-sulfur, which can no longer find
a home in the bunker market and is forecasted to be valued
at parity with coal, said Colleen Murphy-Smith, director of
base oils for Motiva.
The impact of IMO 2020 will be felt globally, across the
entire petroleum complex, and should not be categorized as
a regional issue. "However, certain regions may be impacted
on varying scales due to regional trade and supply of
low-sulfur and high-sulfur bunker fuels in the key bunkering hubs," Murphy-Smith said.
Altering Refinery Operations
To make the low-sulfur marine fuel, refiners are having to
make changes to their processing and/or crude oil slate. Those
that already have hydro-processing technology and bottomsconversion units, such as coking and residual cracking, will be
well-positioned to address new low-sulfur demand.
http://www.ILMA.ORG
ILMA Compoundings - October 2018
Table of Contents for the Digital Edition of ILMA Compoundings - October 2018
LETTER FROM THE CEO
LETTER FROM THE PRESIDENT
2018 SCHOLARSHIP WINNERS
INSIDE ILMA
COMPANY CALLOUT
WHAT’S COMING UP
INDUSTRY RUNDOWN
IN THE KNOW
INTERNATIONAL INSIGHT
MARKET REPORT
ROUGH SEAS AHEAD
STICKY SITUATION
ANNUAL MEETING SPEAKER SPOTLIGHT
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
MEMBER CONNECTIONS
CROSS CONNECTIONS
PORTRAIT
ILMA Compoundings - October 2018 - Cover1
ILMA Compoundings - October 2018 - Cover2
ILMA Compoundings - October 2018 - 1
ILMA Compoundings - October 2018 - 2
ILMA Compoundings - October 2018 - 3
ILMA Compoundings - October 2018 - 4
ILMA Compoundings - October 2018 - LETTER FROM THE CEO
ILMA Compoundings - October 2018 - 6
ILMA Compoundings - October 2018 - LETTER FROM THE PRESIDENT
ILMA Compoundings - October 2018 - INSIDE ILMA
ILMA Compoundings - October 2018 - 9
ILMA Compoundings - October 2018 - 10
ILMA Compoundings - October 2018 - 11
ILMA Compoundings - October 2018 - 12
ILMA Compoundings - October 2018 - 13
ILMA Compoundings - October 2018 - COMPANY CALLOUT
ILMA Compoundings - October 2018 - 15
ILMA Compoundings - October 2018 - 16
ILMA Compoundings - October 2018 - 17
ILMA Compoundings - October 2018 - WHAT’S COMING UP
ILMA Compoundings - October 2018 - 19
ILMA Compoundings - October 2018 - INDUSTRY RUNDOWN
ILMA Compoundings - October 2018 - 21
ILMA Compoundings - October 2018 - 22
ILMA Compoundings - October 2018 - IN THE KNOW
ILMA Compoundings - October 2018 - INTERNATIONAL INSIGHT
ILMA Compoundings - October 2018 - 25
ILMA Compoundings - October 2018 - 26
ILMA Compoundings - October 2018 - 27
ILMA Compoundings - October 2018 - MARKET REPORT
ILMA Compoundings - October 2018 - 29
ILMA Compoundings - October 2018 - ROUGH SEAS AHEAD
ILMA Compoundings - October 2018 - 31
ILMA Compoundings - October 2018 - 32
ILMA Compoundings - October 2018 - 33
ILMA Compoundings - October 2018 - 34
ILMA Compoundings - October 2018 - 35
ILMA Compoundings - October 2018 - STICKY SITUATION
ILMA Compoundings - October 2018 - 37
ILMA Compoundings - October 2018 - 38
ILMA Compoundings - October 2018 - 39
ILMA Compoundings - October 2018 - 40
ILMA Compoundings - October 2018 - 41
ILMA Compoundings - October 2018 - ANNUAL MEETING SPEAKER SPOTLIGHT
ILMA Compoundings - October 2018 - 43
ILMA Compoundings - October 2018 - 44
ILMA Compoundings - October 2018 - 45
ILMA Compoundings - October 2018 - BUSINESS HUB
ILMA Compoundings - October 2018 - 47
ILMA Compoundings - October 2018 - 48
ILMA Compoundings - October 2018 - 49
ILMA Compoundings - October 2018 - COUNSEL COMPOUND
ILMA Compoundings - October 2018 - 51
ILMA Compoundings - October 2018 - 52
ILMA Compoundings - October 2018 - WASHINGTON LANDSCAPE
ILMA Compoundings - October 2018 - MEMBER CONNECTIONS
ILMA Compoundings - October 2018 - 55
ILMA Compoundings - October 2018 - 56
ILMA Compoundings - October 2018 - 57
ILMA Compoundings - October 2018 - 58
ILMA Compoundings - October 2018 - 59
ILMA Compoundings - October 2018 - CROSS CONNECTIONS
ILMA Compoundings - October 2018 - 61
ILMA Compoundings - October 2018 - 62
ILMA Compoundings - October 2018 - 63
ILMA Compoundings - October 2018 - 64
ILMA Compoundings - October 2018 - 65
ILMA Compoundings - October 2018 - 66
ILMA Compoundings - October 2018 - 67
ILMA Compoundings - October 2018 - PORTRAIT
ILMA Compoundings - October 2018 - Cover3
ILMA Compoundings - October 2018 - Cover4
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