During the 2020 ADI Forum, Horace Hobbs, Chief Economist, Phillips 66, shared insights on the future of bunker fuel as the marine industry transitions to lower-carbon options. While bunker fuel remains the primary choice, the longevity of ships indicates that this shift will be a long-term process, with demand persisting even if traditional fuel production ceased. Liquefied natural gas (LNG) is gaining traction as a cleaner alternative, with the immediate goal being to reduce the emissions trajectory. As global trade stabilizes due to manufacturing and population shifts, significant growth in bunker fuel demand is not anticipated. Although improved ship efficiency can contribute, the main challenge involves transitioning the global fleet to new fuels, and with ample crude oil supplies, the speed of this change will likely be determined more by policy and economic drivers than by supply limitations.
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