Baker & O'Brien Presents at Crude Oil Quality Association Meeting

Baker & O'Brien spoke at the October 25, 2018 meeting of the Crude Oil Quality Association on “Changing Crude Dynamics: Growing U.S. Production and IMO 2020 Regulation” Baker & O'Brien discussed the relative margins of refineries in the U.S. that produce residual fuel oil and the potential for these margins to be re-arranged due to IMO 2020. The price difference between light, sweet, West Texas Intermediate (WTI) and heavy, sour, Western Canadian Select (WCS) will be directly impacted. There are two drastically different mitigations to meet IMO 2020 specifications: Ship Exhaust Scrubbers and Cokers. Baker & O'Brien compared the project economics for these investments using price spreads between WTI and WCS crudes along with price spreads between 3.0% and 0.5% sulfur fuel oils.

Attached Documents

Petroleum Refining
Markets & Strategy / Renewables and Regulatory / PRISM Refining Industry Modeling and Database