Course description
Fundamentals of Bunker Supply, Demand, Pricing & Operations is a two-day instructor led course presented by the energy training experts at Mennta Energy Solutions. The bunker industry has become increasing challenging for all players. Residual fuel supplies are in decline as more and more of the oil barrel is cracked to produce lighter transportation fuels at a time when demand is rising again with the slow recovery in the global economy. The quality of bunker supplies has become an increasing issue and the lowering of sulphur limits in Emission Control Areas, effective 1 January 2015 will present an additional challenge to ship operators. Future pricing of bunker fuels also looks less certain following the decline in oil prices in the second half of 2014 raising the risks to both buyers and sellers.
This is an intensive two day course covering bunker fuel demand and supply, pricing, physical and paper trading, legislation, blending and testing for quality. Presentations by a team of experienced industry experts are combined with an exercise and case study as part of the training experience.
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Suitability - 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.
Suitability
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.
Training Course Content
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 from 1 January, 2015
- 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
Content
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 from 1 January, 2015
- 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