Fundamentals of Bunker Supply, Demand, Pricing & Operations - BF1 

CPE Credits Awarded: 16
Categories: Oil Industry, Oil Supply and Trading, Shipping and Bunkering

Course Date Duration Venue Price Registration Deadline Register
11 Jun 2019 2 Days London, UK Country: gb
£ (GBP)2,020.00+20%VAT
3 May 2019

COURSE SUMMARY

Fundamentals of Bunker Supply, Demand, Pricing & Operations is a two-day instructor led course presented by the energy training experts at Mennta Energy Solutions. Developments in the bunker fuel market are one of this year’s hottest topics. The implementation of IMO’s global ban from 1 January 2020 on sulphur emissions greater than 0.5% has raised a number of questions over:

  • the future availability of new very low sulphur fuel oils (VLSFO)
  • price differentials between marine fuels
  • the alternatives to burning VLSFO
  • the stability, miscibility, sampling and compatibility testing of new fuels
  • fuel standards and test methods

In addition, moves are underway in the shipping industry to reduce levels of greenhouse gas (GHG) emissions. Apart from considering ship design and operations, this involves consideration of fuels derived from renewable resources including certain sources of methanol, biofuels, ammonia and hydrogen. Shipowners are already participating in projects to develop such fuels. The relevance of this is that new vessels ordered in the next decade will still be around in up to 20 years time or more.

This is an intensive two-day course covering bunker fuel demand and supply, pricing, physical and paper trading, bunker buying, legislation, blending and testing for quality. Presentations by a team of experienced industry experts are combined with exercises and case studies as part of the training experience.

PRE-REQUISITES

There are no pre-requisites for this course, nor is any advanced preparation required.

WHO SHOULD ATTEND?

This course will be of interest to anyone involved in the planning, buying and selling of bunker fuels, physical and paper traders, brokers and ship operators – or participants whose organisations offer services to this industry.

COURSE CONTENTS

Bunker Fuel Supply

  • The nature of crude oil
  • Refining – capacity and fuel production                    
  • Fuel manufacture                                
  • Refinery upgrading                            
  • Future refinery operations                            

Bunker Fuel Demand

  • Sectorial fuel use                                
  • Regional fuel use                                
  • Future trends                                
  • Demand shifts                                
  • Demand and supply balances                                

Pricing

  • Fuel and the refinery economics
  • Specifications                                
  • Characteristics affecting price                
  • Pricing methodology                        
  • Price variations                        
  • Fuel cracks                            

Price Drivers

  • Fuel oil trading including blending and an overview of hedging, storage, arbitrage and spreads
  • The market participants                            
  • Physical trading                        
  • Derivative trading                        

Structural Changes

  • Bunker specification changes                            
  • Emission trading – overview                        
  • Future pricing – overview                            
  • Buyers strategy                                

Regulations and Standards

  • Impact of changes in specifications
  • Alternatives – LNG bunkering, scrubbers
  • ISO 8271

Price Risk Management

  • Price risk management techniques                
  • Developing a bunker purchasing strategy what are the impacts for the suppliers                     

Metering and Claims Procedures

  • How does more accurate metering lead to better business        
  • When to mediate - when to arrest how to streamline claims procedures    

Bunkering Strategies for Ship Owners

Exercises and Cases Studies

  • Where and how much to bunker – a ‘real time’ exercise
  • Blending and Testing for Quality

FACULTY

Mr Charles Lawrie is a founding partner of Richardson Lawrie Associates, an independent firm of international maritime economists and business consultants established in 1987. He is responsible for the firm's consulting and retainer services in the crude oil, petroleum products and gas transportation sectors. He has spent 30 years in the oil and shipping sectors, more than 20 of which have been as project manager or senior consultant on shipping, economics, investment appraisals, feasibility studies, transportation strategies and business studies within Europe, the Americas and the Far East. He is a specialist in the development of: investment appraisals, business plans, strategy reviews; commercial/contractual advice, project implementation; evaluation of the transportation economics of varying routes, ports and cargo handling techniques; commodity trade flow analyses and forecasts; modelling and forecasts of short, medium and long term shipping traffic, shipping demand and shipping supply; and modelling and forecasts of shipping charter rates and vessel costs.

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