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

October 25, 2018

Curtis Ruder 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”   Mr. Ruder 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.  Mr. Ruder 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.

Please click here for the full presentation.