To comply with these new regulations, oil companies must modernize their refineries. Optima Process Systems, Inc. is using new technologies to provide environmentally compliant solutions to address this upgrading need in this trillion-dollar oil refining market.
The magnitude, consequence, risk and urgency of this effort to improve the global environment is highlighted and championed below by top thought leaders:
Bank of England Governor, Mark Carney presented A Transition in Thinking and Action to the International Climate Risk Conference for Supervisors on April 6, 2018 in Amsterdam. There, Carney outlined the scope of institutional interest coalescing behind this movement since the Paris Agreement of 2015:
“At the One Planet Summit in Paris in 2017, financial institutions responsible for managing $80 trillion of assets – equivalent to the annual global GDP – publicly supported the Task Force for Climate-related Disclosures (TCFD).”
“The supporters included 20 globally-systemic banks, 8 of the top 10 global asset managers, the world’s leading pension funds and insurers, the largest sovereign wealth fund and the two dominant shareholder advisory service companies.”
Renowned investment strategist Jeremy Grantham highlighted the risks of climate change in a report published in July in which he too encouraged the world to address this risk:
“Thirty years ago, the dire predictions of leading climate scientists were laughed at,” wrote the founder of Boston-based asset manager GMO. “Now we watch these predictions coming true and ignore the data or pretend to. So, as the world starts to burn up, we twiddle our thumbs and talk about ‘just another heat wave!’ God help us.”
While many take solace in green technologies, Grantham warned, “But even as solar, wind and other green technologies surge, it is expected that 50 percent of energy consumption will still be driven by fossil fuel by 2050…. Since 1950 the number of floods is up by 15 times; there have been 10 times as many deaths from droughts; wildfires are up sevenfold; and extreme temperature events are 20 times what they were.” His report went on to describe that “as of July 25, weather stations around the world have reported 122 record highs in the last month, as opposed to only two record lows. The hottest overnight minimum temperature ever recorded in history—108.7 degrees Fahrenheit—was just a few months ago, on June 26, in Quriyat, Oman.”
Critically, climate change threatens the global food supply. “The more serious problem posed by ocean level rise will be the loss of the great rice-producing deltas: the Nile, the Mekong, the Ganges, and others, which produce about a fifth of all the rice grown in the world,” he wrote.
PK Verleger, LLC’s July letter, $200 Crude, the Economic Crisis of 2020, and Policies to Prevent Catastrophe, warns of the economic impact of IMO 2020 the most consequential global regulation to date.
IMO 2020 is the International Maritime Organization marine fuel regulation that requires shipping companies reduce their fuel oil sulphur content from 3.5% to 0.5% by January 1, 2020. IMO 2020 will have a major market implications. It should affect 50,000 ships and impact half the refiners in the world. According to energy economist Dr. Philip K. Verleger, Jr., “if nothing changes, we could see $200/bl oil and a global economic crisis on the order of 2008.”
From an investment perspective, Mark Carney argues,
“Financing the transition to a low carbon economy is a major opportunity for investors and creditors. It implies a sweeping technological revolution, including investments in long-term infrastructure at roughly quadruple the current rate.”
Optima Process Systems, Inc. is such a company. Optima is preparing to provide solutions to this refining challenge and brings our deep understanding of engineering, technology providers, shipping companies, international oil companies and global refineries to bear on this challenge and opportunity. Optima is in the process of engaging and ultimately partnering with suitable and qualified technology providers that credibly purport to desulphurize refinery residuals or “HSFO” high sulfur fuel oil into Marine Gasoil (MGO). Optima looks to employ these newer technologies that have not yet experienced industry adoption and commercialization to bring lower cost solutions and thereby provide urgently needed economic solutions to this industry.