How Shipping Revolution affects the Oil and Gas industry
May. 25, 2018

How Shipping Revolution affects the Oil and Gas industry

The way oil and gas products travel from point of exploration to end consumer is very complex, yet quite simple. And, with oil prices going up we can confidently confirm that shipping industry will be booming and consequently drive prices even higher by its revolutionized transformation. Shipping industry is planning to implement new rules which will enable the reduction of harmful emissions. “On January 1, 2020, the International Maritime Organization (IMO) will enforce new emissions standards designed to significantly curb pollution produced by the world's ships”.

When those measures become viable we can expect the oil producers to have a great inventory of high-sulfur oil and being pressured to comply with IMO regulations. Whilst in contrast, technologies like gas-to-liquid provide premium product, processing gas into synthetic crude oil, free of sulfur or aromatics with the high cetane number for diesel fuel which becomes a perfect fit to imposed IMO regulations.The potential is vast.

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