Tougher shipping rules are impending for quite some time and world’s shipping fleet is preparing for it. Amidst this, the refiners are having an edge with the Exxon Mobil Corp., the Marathon Petroleum Corp., and the Valero Energy Corp. gaining the most, says a Bloomberg report.
From January 2020, vessels plying the world’s shipping routes will be required to burn fuel with less sulfur to help curb greenhouse gas emissions. The new rules are expected to benefit oil refineries around the world, which produce and sell so-called clean fuels.
The Biggest Turning Capacity
America’s refining system has the biggest capacity to turn crude oil into low-sulfur fuels, according to Jefferies Financial Group Inc. The nation’s yield of gasoline, jet fuel and middle distillate is 82 percent, compared with 63 percent globally, the bank said in a note to clients.
“The U.S. refining system has been built to take the heaviest feedstock and maximize the yield of clean fuels,” wrote Jefferies analysts led by Laurence Alexander.
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Source: Bloomberg
