Global Low Sulfur Fuel Oil Market: Snapshot
The low sulfur oil market has been recently witnessing massive impetus from the changing regulations in the marine industry. The recent impetus is spearheaded by momentum generated from New International Maritime Organization (IMO) regulations that calls for slashing the highest percentage of the sulfur marine fuels can contain. The norms will kick in in the next year that is in 2020. This has now started to stir the shipping industry to transition to low-sulfur fuel oil. Undoubtedly, the industry has remained as the biggest contributor of sulfur to the environment, accentuating the risk of sulfur dioxide in the atmosphere. Sulfur dioxide exposure is associated with adverse health concerns. Seemingly, the implementation of regulations will pave way to an era of low-sulfur and will likely cause upheaval in the industry in the not-so-distant future. Rapid advances have been made in marine fuel blending technology. This will enable the shipping industry worldwide to make the transition faster. Growing numbers of trails that have successfully trained sea and shore staff on understanding the properties of low sulfur fuel oil will open new trends supporting the expansion of the market.
Post the regulations drafting, there has been an air of uncertainly in fuel prices for the marine industry. This has led to a growing number of futures contracts among shipping and energy firms, especially in developed nations. This has spurred trade activities in low-sulfur marine fuel, thus boosting the prospects in the low sulfur oil market. The shift toward cleaner fuels is one of the key drivers for the market. The marine industry is becoming increasingly aware about the ways that can help it contribute to reducing air pollution. Growing focus of countries that are considered as oil trading hub is expanding the potential in the market considerably. A case in point is low-sulfur marine fuel trade supported by developed Asian countries.
Low Sulfur Fuel Oil Market: Overview
Residential heating oil is also referred to as fuel oil. It is a middle distillate petroleum product and is similar to jet fuel and kerosene. In the past few years, fuel oil and diesel were considered to be identical. The same refined petroleum product was procured andsold through gas stations as highway fuel and as heating oil by dealers.In the present scenario, residential heating oil is considered to be different from highway fuel for two main reasons: firstly, in 1990s, the U.S. Environmental Protection Agency (EPA) has passed a regulation that diesel oil used for transportation purpose should have a sulfur content of less than 500 parts per million. However,for heating oil, sulfur content was kept in the range of 2,000 ppm to 2,500 ppm. Further,the highway fuels are taxed on per unit price by both federal and state governments, in order to raise revenue and to provide funding for highway trust funds. Since heating oil is not taxed on the same lines as that of highway fuel, it is dyed in cranberry red color to differentiate it from highway fuel.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.