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Fuel oil
Fuel oil
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An oil tanker taking on fuel, or "bunkering"

Fuel oil is any of various fractions obtained from the distillation of petroleum (crude oil). Such oils include distillates (the lighter fractions) and residues (the heavier fractions). Fuel oils include heavy fuel oil (bunker fuel), marine fuel oil (MFO), furnace oil (FO), gas oil (gasoil), heating oils (such as home heating oil), diesel fuel, and others.

The term fuel oil generally includes any liquid fuel that is burned in a furnace or boiler to generate heat (heating oils), or used in an engine to generate power (as motor fuels). However, it does not usually include other liquid oils, such as those with a flash point of approximately 42 °C (108 °F), or oils burned in cotton- or wool-wick burners. In a stricter sense, fuel oil refers only to the heaviest commercial fuels that crude oil can yield, that is, those fuels heavier than gasoline (petrol) and naphtha.

Fuel oil consists of long-chain hydrocarbons, particularly alkanes, cycloalkanes, and aromatics. Small molecules, such as those in propane, naphtha, gasoline, and kerosene, have relatively low boiling points, and are removed at the start of the fractional distillation process. Heavier petroleum-derived oils like diesel fuel and lubricating oil are much less volatile and distill out more slowly.

Uses

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A fuel station in Zigui County on the Yangtze River
HAZMAT class 3 fuel oil

Oil has many uses; it heats homes and businesses and fuels trucks, ships, and some cars. A small amount of electricity is produced by diesel, but it is more polluting and more expensive than natural gas. It is often used as a backup fuel for peaking power plants in case the supply of natural gas is interrupted or as the main fuel for small electrical generators. In Europe, the use of diesel is generally restricted to cars (about 40%), SUVs (about 90%), and trucks and buses (over 99%). The market for home heating using fuel oil has decreased due to the widespread penetration of natural gas as well as heat pumps. However, it is very common in some areas, such as the Northeastern United States.

Fuel oil truck making a delivery in North Carolina, 1945

Residual fuel oil (also known as heavy fuel oil) is less useful because it is so viscous that it has to be heated with a special heating system before use and it may contain relatively high amounts of pollutants, particularly sulfur, which forms sulfur dioxide upon combustion. However, its undesirable properties make it very cheap. In fact, it is the cheapest liquid fuel available. Since it requires heating before use, residual fuel oil cannot be used in road vehicles, boats or small ships, as the heating equipment takes up valuable space and makes the vehicle heavier. Heating the oil is also a delicate procedure, which is impractical on small, fast moving vehicles. However, power plants and large ships are able to use residual fuel oil.

Use of residual fuel oil was more common in the past. It powered boilers, railroad steam locomotives, and steamships. Locomotives, however, have become powered by diesel or electric power; steamships are not as common as they were previously due to their higher operating costs (most LNG carriers use steam plants, as "boil-off" gas emitted from the cargo can be used as a fuel source); and most boilers now use heating oil or natural gas. Some industrial boilers still use it and so do some old buildings, including in New York City. In 2011 New York City estimated that the 1% of its buildings that burned fuel oils No. 4 and No. 6 were responsible for 86% of the soot pollution generated by all buildings in the city. New York made the phase out of these fuel grades part of its environmental plan, PlaNYC, because of concerns for the health effects caused by fine particulates,[1] and all buildings using fuel oil No. 6 had been converted to less polluting fuel by the end of 2015.[2]

Residual fuel's use in electrical generation has also decreased. In 1973, residual fuel oil produced 16.8% of the electricity in the US. By 1983, it had fallen to 6.2%, and as of 2005, electricity production from all forms of petroleum, including diesel and residual fuel, is only 3% of total production.[citation needed] The decline is the result of price competition with natural gas and environmental restrictions on emissions. For power plants, the costs of heating the oil, extra pollution control and additional maintenance required after burning it often outweigh the low cost of the fuel. Burning fuel oil, particularly residual fuel oil, produces uniformly higher carbon dioxide emissions than natural gas.[3]

Heavy fuel oils continue to be used in the boiler "lighting up" facility in many coal-fired power plants. This use is approximately analogous to using kindling to start a fire. Without performing this act it is difficult to begin the large-scale combustion process.

The chief drawback to residual fuel oil is its high initial viscosity, particularly in the case of No. 6 oil, which requires a correctly engineered system for storage, pumping, and burning. Though it is still usually lighter than water (with a specific gravity usually ranging from 0.95 to 1.03) it is much heavier and more viscous than No. 2 oil, kerosene, or gasoline. No. 6 oil must, in fact, be stored at around 38 °C (100 °F) heated to 65–120 °C (149–248 °F) before it can be easily pumped, and in cooler temperatures it can congeal into a tarry semisolid. The flash point of most blends of No. 6 oil is, incidentally, about 65 °C (149 °F). Attempting to pump high-viscosity oil at low temperatures was a frequent cause of damage to fuel lines, furnaces, and related equipment which were often designed for lighter fuels.

For comparison, BS 2869 Class G heavy fuel oil behaves in similar fashion, requiring storage at 40 °C (104 °F), pumping at around 50 °C (122 °F) and finalizing for burning at around 90–120 °C (194–248 °F).

Most of the facilities which historically burned No. 6 or other residual oils were industrial plants and similar facilities constructed in the early or mid 20th century, or which had switched from coal to oil fuel during the same time period. In either case, residual oil was seen as a good prospect because it was cheap and readily available. Most of these facilities have subsequently been closed and demolished, or have replaced their fuel supplies with a simpler one such as gas or No. 2 oil. The high sulfur content of No. 6 oil—up to 3% by weight in some extreme cases—had a corrosive effect on many heating systems (which were usually designed without adequate corrosion protection in mind), shortening their lifespans and increasing the polluting effects. This was particularly the case in furnaces that were regularly shut down and allowed to go cold, because the internal condensation produced sulfuric acid.

Environmental cleanups at such facilities are frequently complicated by the use of asbestos insulation on the fuel feed lines. No. 6 oil is very persistent, and does not degrade rapidly. Its viscosity and stickiness also make remediation of underground contamination very difficult, since these properties reduce the effectiveness of methods such as air stripping.

When released into water, such as a river or ocean, residual oil tends to break up into patches or tarballs – mixtures of oil and particulate matter such as silt and floating organic matter – rather than form a single slick. An average of about 5-10% of the material will evaporate within hours of the release, primarily the lighter hydrocarbon fractions. The remainder will then often sink to the bottom of the water column.

Health effects

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Because of the low quality of bunker fuel, when burnt it is especially harmful to the health of humans, causing serious illnesses and deaths. Prior to the IMO's 2020 sulfur cap, shipping industry air pollution was estimated to cause around 400,000 premature deaths each year, from lung cancer and cardiovascular disease, as well as 14 million childhood asthma cases each year.[4]

Even after the introduction of cleaner fuel rules in 2020, shipping air pollution is still estimated to account for around 250,000 deaths each year, and around 6.4 million childhood asthma cases each year.

The hardest hit countries by air pollution from ships are China, Japan, the UK, Indonesia, and Germany. In 2015, shipping air pollution killed an estimated 20,520 people in China, 4,019 people in Japan, and 3,192 people in the UK.[5]

According to an ICCT study, countries located on major shipping lanes are particularly exposed, and can see shipping account for a high percentage of overall deaths from transport sector air pollution. In Taiwan, shipping accounts for 70% of all transport-attributable air pollution deaths in 2015, followed by Morocco at 51%, Malaysia and Japan both at 41%, Vietnam at 39%, and the UK at 38%.[5]

As well as commercial shipping, cruise ships also emit large amounts of air pollution, damaging people's health. Up to 2019, it was reported that the ships of the single largest cruise company, Carnival Corporation & plc, emitted ten times more sulfur dioxide than all of Europe's cars combined.[6]

General classification

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United States

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Although the following trends generally hold true, different organizations may have different numerical specifications for the six fuel grades. The boiling point and carbon chain length of the fuel increases with fuel oil number. Viscosity also increases with number, and the heaviest oil must be heated for it to flow. Price usually decreases as the fuel number increases.[7]

Number 1 fuel oil is a volatile distillate oil intended for vaporizing pot-type burners and high-performance/clean diesel engines.[8] It is the kerosene refinery cut that boils off immediately after the heavy naphtha cut used for gasoline. This fuel is commonly known as diesel no. 1, kerosene, and jet fuel. Former names include: coal oil, stove oil, and range oil.[7]

Number 2 fuel oil is a distillate home heating oil.[8] Trucks and some cars use similar diesel no. 2 with a cetane number limit describing the ignition quality of the fuel. Both are typically obtained from the light gas oil cut. The name gasoil refers to the original use of this fraction in the late 19th and early 20th centuries—the gas oil cut was used as an enriching agent for carbureted water gas manufacture.[7]

Number 3 fuel oil was a distillate oil for burners requiring low-viscosity fuel. ASTM merged this grade into the number 2 specification, and the term has been rarely used since the mid-20th century.[8]

Number 4 fuel oil is a commercial heating oil for burner installations not equipped with preheaters.[8] It may be obtained from the heavy gas oil cut.[7] This fuel is sometimes known by the Navy specification of Bunker A.

Number 5 fuel oil is a residual-type industrial heating oil requiring preheating to 77–104 °C (171–219 °F) for proper atomization at the burners.[8] It may be obtained from the heavy gas oil cut,[7] or it may be a blend of residual oil with enough number 2 oil to adjust viscosity until it can be pumped without preheating.[8] This fuel is sometimes known by the Navy specification of Bunker B.

Number 6 fuel oil is a high-viscosity residual oil requiring preheating to 104–127 °C (219–261 °F). Residual means the material remaining after the more valuable cuts of crude oil have boiled off. The residue may contain various undesirable impurities, including 2% water and 0.5% mineral oil. This fuel may be known as residual fuel oil (RFO), by the Navy specification of Bunker C, or by the Pacific Specification of PS-400.[8]

United Kingdom

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The British Standard BS 2869, Fuel Oils for Agricultural, Domestic and Industrial Engines, specifies the following fuel oil classes:

Fuel oil classes per BS 2869
Class Type Min. kinematic viscosity Max. kinematic viscosity Min. flash point Max. sulfur content Alias
C1 Distillate 43 °C 0.040 % (m/m) Paraffin
C2 Distillate 1.000 mm2/s at 40 °C 2.000 mm2/s at 40 °C 38 °C 0.100 % (m/m) Kerosene, 28-second oil
A2 Distillate 2.000 mm2/s at 40 °C 5.000 mm2/s at 40 °C > 55 °C 0.001 % (m/m) low-sulfur gas oil, ULSD
D Distillate 2.000 mm2/s at 40 °C 5.000 mm2/s at 40 °C > 55 °C 0.100 % (m/m) Gas oil, red diesel, 35-second oil
E Residual 8.200 mm2/s at 100 °C 66 °C 1.000 % (m/m) Light fuel oil, LFO, 250-second oil
F Residual 8.201 mm2/s at 100 °C 20.000 mm2/s at 100 °C 66 °C 1.000 % (m/m) Medium fuel oil, MFO, 1000-second oil
G Residual 20.010 mm2/s at 100 °C 40.000 mm2/s at 100 °C 66 °C 1.000 % (m/m) Heavy fuel oil, HFO, 3500-second oil
H Residual 40.010 mm2/s at 100 °C 56.000 mm2/s at 100 °C 66 °C 1.000 % (m/m)

Class C1 and C2 fuels are kerosene-type fuels. C1 is for use in flueless appliances (e.g. lamps). C2 is for vaporizing or atomizing burners in appliances connected to flues.

Class A2 fuel is suitable for mobile, off-road applications that are required to use a sulfur-free fuel. Class D fuel is similar to Class A2 and is suitable for use in stationary applications, such as domestic, commercial, and industrial heating. The BS 2869 standard permits Class A2 and Class D fuel to contain up to 7% (V/V) biodiesel (fatty acid methyl ester, FAME), provided the FAME content meets the requirements of the BS EN 14214 standard.

Classes E to H are residual oils for atomizing burners serving boilers or, with the exception of Class H, certain types of larger combustion engines. Classes F to H invariably require heating prior to use; Class E fuel may require preheating, depending on ambient conditions.

Russia

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Mazut is a residual fuel oil often derived from Russian petroleum sources and is either blended with lighter petroleum fractions or burned directly in specialized boilers and furnaces. It is also used as a petrochemical feedstock. In the Russian practice, though, "mazut" is an umbrella term roughly synonymous with the fuel oil in general, that covers most of the types mentioned above, except US grades 1 and 2/3, for which separate terms exist (kerosene and diesel fuel/solar oil respectively — Russian practice doesn't differentiate between diesel fuel and heating oil). This is further separated in two grades, "naval mazut" being analogous to US grades 4 and 5, and "furnace mazut", a heaviest residual fraction of the crude, almost exactly corresponding to US Number 6 fuel oil and further graded by viscosity and sulfur content.

Maritime fuel classification

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In the maritime field another type of classification is used for fuel oils:

Name Description Equivalent in US classification
MGO (Marine gas oil) Made from distillate only Roughly, no. 2 fuel oil
MDO (Marine diesel oil) A blend of heavy gasoil that may contain very small amounts of black refinery feed stocks, but has a low viscosity up to 12 cSt so it need not be heated for use in internal combustion engines. Marine diesel oil contains some heavy fuel oil, unlike regular diesels. Roughly, no. 3 fuel oil
IFO (Intermediate fuel oil) A blend of gasoil and heavy fuel oil, with less gasoil than marine diesel oil Roughly, no. 4 fuel oil
HFO (Heavy fuel oil) pure or nearly pure residual oil Roughly, no. 5 and no. 6 fuel oil
NSFO (Navy special fuel oil) No. 5 HFO
MFO (Marine fuel oil) No. 6 HFO

Standards and classification

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CCAI and CII are two indexes which describe the ignition quality of residual fuel oil, and CCAI is especially often calculated for marine fuels. Despite this, marine fuels are still quoted on the international bunker markets with their maximum viscosity (which is set by the ISO 8217 standard – see below) due to the fact that marine engines are designed to use different viscosities of fuel.[9] The unit of viscosity used is the centistoke (cSt) and the fuels most frequently quoted are listed below in order of cost, the least expensive first.

  • IFO 380 – Intermediate fuel oil with a maximum viscosity of 380 centistokes (<3.5% sulfur)
  • IFO 180 – Intermediate fuel oil with a maximum viscosity of 180 centistokes (<3.5% sulfur)
  • LS 380 – Low-sulfur (<1.0%) intermediate fuel oil with a maximum viscosity of 380 centistokes
  • LS 180 – Low-sulfur (<1.0%) intermediate fuel oil with a maximum viscosity of 180 centistokes
  • MDO – Marine diesel oil
  • MGO – Marine gasoil
  • LSMGO – Low-sulfur (<0.1%) Marine Gas Oil – The fuel is to be used in EU Ports and Anchorages. EU Sulfur directive 2005/33/EC
  • ULSMGO – Ultra-Low-Sulfur Marine Gas Oil – referred to as Ultra-Low-Sulfur Diesel (sulfur 0.0015% max) in the US and Auto Gas Oil (sulfur 0.001% max) in the EU. Maximum sulfur allowable in US territories and territorial waters (inland, marine, and automotive) and in the EU for inland use.

The density is also an important parameter for fuel oils since marine fuels are purified before use to remove water and dirt from the oil. Since the purifiers use centrifugal force, the oil must have a density which is sufficiently different from water. Older purifiers work with a fuel having a maximum of 991 kg/m3; with modern purifiers it is also possible to purify oil with a density of 1010 kg/m3.

The first British standard for fuel oil came in 1982. The latest standard is ISO 8217 issued in 2017.[10] The ISO standard describe four qualities of distillate fuels and 10 qualities of residual fuels. Over the years the standards have become stricter on environmentally important parameters such as sulfur content. The latest standard also banned the adding of used lubricating oil (ULO).

Some parameters of marine fuel oils according to ISO 8217 (3. ed 2005):

Marine distillate fuels
Parameter Unit Limit DMX DMA DMB DMC
Density at 15 °C kg/m3 Max - 890.0 900.0 920.0
Viscosity at 40 °C mm2/s Max 5.5 6.0 11.0 14.0
mm2/s Min 1.4 1.5 - -
Water % V/V Max - - 0.3 0.3
Sulfur1 % (m/m) Max 1.0 1.5 2.0 2.0
Aluminium + Silicon2 mg/kg Max - - - 25
Flash point3 °C Min 43 60 60 60
Pour point, Summer °C Max - 0 6 6
Pour point, Winter °C Max - -6 0 0
Cloud point °C Max -16 - - -
Calculated Cetane Index Min 45 40 35 -
Marine residual fuels
Parameter Unit Limit RMA 30 RMB 30 RMD 80 RME 180 RMF 180 RMG 380 RMH 380 RMK 380 RMH 700 RMK 700
Density at 15 °C kg/m3 Max 960.0 975.0 980.0 991.0 991.0 991.0 991.0 1010.0 991.0 1010.0
Viscosity at 50 °C mm2/s Max 30.0 30.0 80.0 180.0 180.0 380.0 380.0 380.0 700.0 700.0
Water % V/V Max 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Sulfur1 % (m/m) Max 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5
Aluminium + Silicon2 mg/kg Max 80 80 80 80 80 80 80 80 80 80
Flash point3 °C Min 60 60 60 60 60 60 60 60 60 60
Pour point, Summer °C Max 6 24 30 30 30 30 30 30 30 30
Pour point, Winter °C Max 0 24 30 30 30 30 30 30 30 30
  1. Maximum sulfur content in the open ocean is 0.5% since January 2020.[11] Maximum sulfur content in designated areas is 0.1% since 1 January 2015. Before then it was 1.00%.
  2. The content of aluminum and silicon is limited because those metals are dangerous for the engine. Those elements are present because some components of the fuel are manufactured with Fluid Catalytic Cracking process, which makes use of catalyst containing aluminum and silicon.
  3. The flash point of all fuels used in the engine room should be at least 60 °C. (DMX is used for things like emergency generators and not normally used in the engine room. Gaseous fuels such as LPG/LNG have special class rules applied to the fuel systems.)

Bunker fuel

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A sample of residual fuel oil

Bunker fuel or bunker crude is technically any type of fuel oil used aboard water vessels. Its name is derived from coal bunkers, where the fuel was originally stored. In 2019, large ships consumed 213 million metric tons of bunker fuel.[12] The Australian Customs and the Australian Tax Office defines a bunker fuel as the fuel that powers the engine of a ship or aircraft.

Bunker A is No. 4 fuel oil, bunker B is No. 5, and bunker C is No. 6. Since No. 6 is the most common, "bunker fuel" is often used as a synonym for No. 6. No. 5 fuel oil is also called Navy Special Fuel Oil (NSFO) or just navy special; No. 5 or 6 are also commonly called heavy fuel oil (HFO) or furnace fuel oil (FFO); the high viscosity requires heating, usually by a recirculated low pressure steam system, before the oil can be pumped from a bunker tank. Bunkers are rarely labeled this way in modern maritime practice.

Since the 1980s the International Organization for Standardization (ISO) has been the accepted standard for marine fuels (bunkers). The standard is listed under number 8217, with recent updates in 2010 and 2017. The latest edition of bunker fuel specification is ISO 8217: 2017. The standard divides fuels into residual and distillate fuels. The most common residual fuels in the shipping industry are RMG and RMK.[13] The differences between the two are mainly the density and viscosity, with RMG generally being delivered at 380 centistokes or less, and RMK at 700 centistokes or less. Ships with more advanced engines can process heavier, more viscous, and thus cheaper, fuel. Governing bodies around the world, e.g., California, European Union, have established Emission Control Areas (ECA) that limit the maximum sulfur of fuels burned in their ports to limit pollution, reducing the percentage of sulfur and other particulates from 4.5% m/m to as little as 0.10% as of 2015 inside an ECA. As of 2013 3.5% continued to be permitted outside an ECA, but the International Maritime Organization has planned to lower the sulfur content requirement outside the ECAs to 0.5% m/m by 2020.[14] This is where Marine Distillate Fuels and other alternatives[15] to use of heavy bunker fuel come into play. They have similar properties to diesel #2, which is used as road diesel around the world. The most common grades used in shipping are DMA and DMB.[16] Greenhouse gas emissions resulting from the use of international bunker fuels are currently included in national inventories.[17][18]

Table of fuel oils
Name Alias Alias Alias Alias Alias Type Chain length
No. 1 fuel oil No. 1 distillate No. 1 diesel fuel Kerosene Jet fuel Distillate 9-16
No. 2 fuel oil No. 2 distillate No. 2 diesel fuel Road diesel Rail diesel Marine gas oil Distillate 10-20
No. 3 fuel oil No. 3 distillate No. 3 diesel fuel Marine diesel oil Distillate
No. 4 fuel oil No. 4 distillate No. 4 residual fuel oil Bunker A Intermediate fuel oil Distillate/Residual 12-70
No. 5 fuel oil No. 5 residual fuel oil Heavy fuel oil Bunker B Navy special fuel oil Furnace fuel oil Residual 12-70
No. 6 fuel oil No. 6 residual fuel oil Heavy fuel oil Bunker C Marine fuel oil Furnace fuel oil Residual 20-70

Heavy fuel oil is still the primary fuel for cruise ships, a tourism sector that is associated with a clean and friendly image. In stark contrast, the exhaust gas emissions – due to HFO's high sulfur content – result in an eco balance significantly worse than that for individual mobility.[19][20][21]

Bunkering

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The term "bunkering" broadly relates to storage of petroleum products in tanks (among other, disparate meanings). The precise meaning can be further specialized depending on context. Perhaps the most common, more specialized usage refers to the practice and business of refueling ships. Bunkering operations are located at seaports, and they include the storage of bunker (ship) fuels and the provision of the fuel to vessels.[22]

Alternatively "bunkering" may apply to the shipboard logistics of loading fuel and distributing it among available bunkers (on-board fuel tanks).[23]

Finally, in the context of the oil industry in Nigeria, bunkering[24] has come to refer to the illegal diversion of crude oil (often subsequently refined in makeshift facilities into lighter transportation fuels) by the unauthorized cutting of holes into transport pipelines, often by very crude and hazardous means and causing spills.

As of 2018, some 300 million metric tons of fuel oil is used for ship bunkering. On January 1, 2020, regulations set by the International Marine Organization (IMO) all marine shipping vessels will require the use of very low sulfur fuel oil (0.5% Sulfur) or to install exhaust gas scrubber systems to remove the excess sulfur dioxide. The emissions from ships have generally been controlled by the following sulfur caps on any fuel oil used on board: 3.50% on and after 1 January 2012 and 0.50% on and after 1 January 2020.[25] Further removal of sulfur translates to additional energy and capital costs[26] and can impact fuel price and availability. If priced correctly the excess cheap yet dirty fuel would find its way into other markets, including displacing some onshore energy production in nations with low environmental protection .[27]

Transportation

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Fuel oil is transported worldwide by fleets of oil tankers making deliveries to suitably sized strategic ports such as Houston, US; Singapore; Fujairah, United Arab Emirates; Balboa, Panama, Cristobal, Panama; Sakha, Egypt; Algeciras, Spain and Rotterdam, Netherlands. Where a convenient seaport does not exist, inland transport may be achieved with the use of barges. Lighter fuel oils can also be transported through pipelines. The major physical supply chains of Europe are along the Rhine River.

Environmental issues

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Emissions from bunker fuel burning in ships contribute to climate change and to air pollution levels in many port cities, especially where the emissions from industry and road traffic have been controlled. The switch of auxiliary engines from heavy fuel oil to diesel oil at berth can result in large emission reductions, especially for SO2 and PM. CO2 emissions from bunker fuels sold are not added to national GHG emissions. For small countries with large international ports, there is an important difference between the emissions in territorial waters and the total emissions of the fuel sold.[18] At the 1997 Third Conference of the Parties in Kyoto, Japan, countries agreed to exempt bunker fuels, and multilateral military operations, from national emissions totals after insistence from the U.S. climate change delegation for such exemptions.[28]

The emissions from conventional fuel oil in maritime transport has led to a rise in alternative fuels for ship engines and power, including the use of LNG, Ammonia and methanol, among others.[29] Fuel oil usage in ships is expected to decline as a result of the use of alternative fuels following amendments to the MARPOL Convention.[30]

See also

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Fuel oil encompasses a class of heavier petroleum-derived liquids obtained as fractions from the of crude oil in refineries, including both middle-distillate products and residual bottoms left after lighter hydrocarbons like and are separated. These oils, which vary in and content, are standardized under such as ASTM D396 for grades No. 1 through No. 6, with No. 1 and No. 2 being lighter distillates suitable for clean-burning applications and Nos. 5 and 6 comprising viscous residuals requiring preheating for combustion. Primarily utilized for their high and cost-effectiveness, fuel oils power stationary boilers for industrial heating and , serve as fuel for large marine vessels, and provide space heating in regions where infrastructure is limited. Distillate fuel oils (Nos. 1–4) derive from intermediate boiling ranges in refinery distillation towers, yielding relatively low-viscosity products with minimal ash and sulfur when refined to ultra-low sulfur diesel standards, while residual fuel oils (Nos. 5–6) consist of the dense, tar-like remnants at the process bottom, often blended with cutter stock to improve flow properties. This distinction arises from the physics of fractional distillation, where crude oil is heated to vaporize components by molecular weight, with heavier residues necessitating thermal or vacuum cracking in advanced refineries to maximize yield. Global demand persists due to residuals' caloric value—approximating 40 MJ/kg—enabling efficient large-scale energy delivery, though maritime use has adapted to IMO 2020 sulfur caps via compliant very low sulfur fuel oil variants. In economic terms, fuel oil's role underscores refining economics, where residuals represent unavoidable outputs from processing lighter crudes for transportation fuels, supporting baseload power in developing grids and where alternatives like or renewables lack comparable dispatchable reliability.

Definition and Properties

Composition and Refining

Fuel oil, specifically residual fuel oil, comprises the heavy residuum obtained after removing lighter distillate fractions such as , , and diesel through crude oil processes. This residuum represents the bottom product from refining operations, enriched in high-molecular-weight hydrocarbons that boil at temperatures exceeding 350°C under atmospheric conditions. The primary refining pathway begins with atmospheric of desalted crude oil, heated to approximately 370–400°C in a furnace before entering a column, where vapor-liquid separation yields successively heavier cuts culminating in atmospheric residuum. This residuum, too viscous for direct further atmospheric processing, undergoes at reduced pressures (typically 10–100 mmHg) to lower boiling points and produce vacuum gas oil alongside vacuum residuum, the core component for heavy fuel oils. Additional treatments may include , where reacts with compounds over catalysts to produce , reducing sulfur levels from inherent crude contents often exceeding 2% to meet specifications. Compositionally, residual fuel oils feature complex mixtures of hydrocarbons with carbon chain lengths predominantly from C20 to C50, encompassing alkanes, cycloalkanes, aromatics, and polar s that contribute to high and . Asphaltenes, comprising up to 20% in some grades, form micellar structures stabilized by resins, while content ranges from 0.5% to 3.5% depending on crude origin and , influencing properties. To achieve desired viscosities and grades, vacuum residuum is often blended with lower-boiling distillates or cracked products, and may incorporate additives such as dispersants to inhibit asphaltene aggregation or antioxidants to enhance oxidative stability during storage.

Physical and Chemical Characteristics

Fuel oils, especially residual grades like , are distinguished by their high kinematic , often exceeding 700 mm²/s at 50°C, necessitating preheating to 100–150°C for effective pumping, atomization, and in industrial and marine applications. This contrasts with lighter distillate fuels, which flow readily at ambient temperatures. typically ranges from 0.90 to 1.01 g/cm³ at 15°C, contributing to higher volumetric compared to solid fuels like . The higher heating value of averages 40–41 MJ/kg, providing substantial energy release upon , though actual efficiency depends on complete burning and system design. Sulfur content varies significantly by grade and , from less than 0.1% in ultra-low fuel oils to up to 3.5% in traditional heavy fuel oils, influencing emissions during . Carbon residue, measured by Conradson method, can reach 15% by weight in residual fuels, indicating potential for formation and requiring additives or advanced burners for mitigation. Safety-related properties include a minimum of 60°C for most grades under ASTM D396, ensuring reduced ignition risk during storage and handling. , the temperature below which the oil gels and ceases to flow, typically does not exceed 30°C in summer grades, though heavier residuals may require heated storage to prevent solidification. These characteristics are standardized in ASTM D396, which specifies limits for , , and other metrics to ensure compatibility with fuel-burning equipment.

Historical Development

Origins in Petroleum Refining

Fuel oil emerged as the heavy residual fraction, known as residuum, from the distillation of crude petroleum primarily to produce kerosene for illumination during the mid-19th century. Early commercial refining in the United States began with operations like Samuel M. Kier's Pittsburgh facility around 1850, which processed rock oil or seeped crude via simple batch distillation to yield kerosene, leaving behind the viscous, tar-like residuum that was initially discarded, burned inefficiently, or repurposed as a rudimentary lubricant. Similar rudimentary refining occurred in Russia during the 1850s near early oil seeps, though scaled production awaited later developments. The 1859 drilling of Edwin Drake's well in —reaching a depth of 69 feet and yielding 25 barrels per day initially—sparked a refining boom, with dozens of stills operational by 1860 to capitalize on demand as a substitute. This process generated substantial residuum, often 40-50% of the crude input, which refiners increasingly burned in on-site boilers by the early to power itself, supplanting costlier and amid output surges to millions of barrels annually. Patents for oil-burning boilers proliferated in the , enabling residuum's broader use in stationary engines for industrial and heating, thus facilitating cheaper transitions in and railroads during the oil region's rapid expansion. By the late , this residuum—termed fuel oil—saw initial maritime trials, as navies and steamships tested it in boilers for higher caloric value and reduced handling compared to , exemplified by U.S. naval experiments post-1880s torpedo boat trials that demonstrated efficiency gains of up to 20% in fuel storage and . These applications underscored fuel oil's role as an opportunistic driving early petroleum's integration into systems, though quality variability from inconsistent crudes limited until refined techniques advanced.

Expansion in Industrial and Maritime Use

Following , fuel oil experienced significant expansion in U.S. industrial applications, particularly in power plants and factories, as part of the broader shift from to for generating processed energy forms like . This transition supported rapid , with electricity access rising to about 63% of the U.S. population by the , driven by increased demand for reliable fuels in and utilities. Fuel oil's adoption was facilitated by its higher and ease of handling compared to coal, enabling more efficient boiler operations in expanding sectors like and chemicals. During , fuel oil became essential for maritime propulsion in naval destroyers and tankers, supplanting due to its superior and logistical advantages. Oil provided roughly 20-30% greater energy output per unit mass than typical coals used in earlier warships, allowing for smaller boilers, higher speeds, reduced smoke emissions, and faster refueling—often at sea—which enhanced operational flexibility in combat scenarios. The U.S. Navy's pre-war conversion to oil-fired systems, accelerated by wartime demands, underscored these gains, with fuel oil enabling sustained high-performance voyages for protection and logistics. In the through , residual fuel oil dominated global maritime bunker fuels, accounting for the vast majority of propulsion energy in ocean-going vessels and underpinning the expansion. This era saw marine fuel consumption grow from approximately 64.5 million metric tons in 1950 to over 280 million metric tons by the early 2000s, with heavy fuel oils comprising the primary type until regulatory shifts. The prevalence of oil in shipping fleets facilitated global commerce booms, as its cost-effectiveness and high energy content supported larger, faster vessels handling surging cargo volumes in oil and .

Post-1970s Shifts and Regulations

The 1973 oil embargo by members caused global oil prices to quadruple, rising from approximately $2.90 per barrel to $11.65 per barrel by , severely impacting fuel oil markets through higher costs for residual and distillate grades used in heating and industry. The 1979 crisis, triggered by the , further doubled prices from mid-1979 to April 1980, exacerbating shortages and prompting widespread adoption of energy efficiency technologies, such as improved designs and insulation, alongside fuel switching to and in countries. These shocks reduced overall demand in developed economies, with oil consumption falling post-1973 and again after 1979, yet (HFO) persisted as a cost-effective baseload fuel in power generation and maritime sectors due to its minimal requirements compared to lighter distillates. In the United States, residential distillate fuel oil consumption for heating peaked during the at levels supporting roughly 25% of households in the Northeast, but declined nearly annually thereafter due to pipeline expansions, regulatory incentives for efficiency, and milder winters, reaching about 4.4% of total households by 2021. This contraction, from over 200 trillion Btu in the early to under 500 billion Btu by the in residential use, reflected broader shifts away from oil dependence amid volatile prices and abundant alternatives. Such declines in mature markets were partially offset by rising demand in , where rapid industrialization post-1980s boosted fuel oil use in and ; developing Asian economies, reliant on fuel oil for over 50% of products during the 1973 crisis, saw sustained growth in residual fuel consumption through the and as export-oriented factories proliferated. A pivotal regulatory shift occurred with the International Maritime Organization's (IMO) 2020 sulfur cap, effective January 1, 2020, which mandated a global limit of 0.50% sulfur content in marine fuels, down from 3.5%, targeting heavy fuel oil emissions. This prompted widespread adoption of very low sulfur fuel oil (VLSFO), typically produced by blending high-sulfur residues with marine gas oil or hydrotreated components, with compliance exceeding 90% by mid-2020 and supply proving ample at ports despite initial concerns. By 2024, VLSFO accounted for the majority of bunker sales, maintaining market stability through ongoing blending operations and minimal reported non-availability incidents, though it increased costs by 20-50% relative to pre-2020 HFO depending on crude slate variations.

Production and Supply Chain

Refining Processes

Fuel oil is primarily produced from the vacuum residuum, the heaviest fraction obtained after of the atmospheric residue from crude oil processing. This residuum constitutes approximately 10-30% of the original crude input, with yields varying based on crude characteristics: lighter sweet crudes produce lower amounts due to higher distillate fractions, while heavier sour crudes yield more residuum. The operates under reduced pressure (typically 25-75 mmHg) to lower boiling points and prevent thermal cracking, separating gas oils from the residuum while preserving the heavy hydrocarbons essential for fuel oil. To enhance usability, the viscous vacuum residuum often undergoes visbreaking, a mild thermal cracking process that breaks long hydrocarbon chains at temperatures of 430-485°C under , reducing by 5-10 times and generating 10-15% lighter distillates like and gas oil as byproducts. Visbreaking minimizes the need for additional cutter stock in blending and improves fuel stability, though it can increase sediment formation if not controlled, requiring downstream filtration or management. Alternatively, more severe secondary cracking processes, such as delayed coking, may convert residuum into lighter products, but visbreaking is preferred for direct fuel oil production due to its lower capital intensity and focus on viscosity reduction without excessive coke yield. For low-sulfur fuel oil variants, (HDS) via hydrotreating is employed, reacting the residuum with over cobalt-molybdenum catalysts at 300-400°C and 50-150 bar to remove as H2S, achieving reductions from 2-4% to below 0.5% . This process incurs a processing premium of approximately $5-10 per barrel, reflecting consumption, catalyst costs, and high-pressure equipment demands, though exact figures vary with feedstock content and configuration. Final fuel oil grades are achieved by blending the processed residuum with cutter stocks—lighter distillates like gas oil or marine diesel—to dilute and meet specifications such as maximum 380 cSt for IFO 380 or lighter grades like No. 4 oil (45-125 cSt). Blending ratios typically range from 10-50% cutter stock by volume, optimized via empirical testing for , stability, and compatibility to prevent or sediment. involves ASTM-standardized tests for , , and , ensuring compliance with regional standards like ISO 8217 for marine fuels. Global production of residual fuel oil, the primary form used in heavy industrial and marine applications, reached approximately 100 million metric tons in 2024, reflecting a recovery from pandemic-era disruptions. Leading refining hubs include the U.S. Gulf Coast, which processes heavy imports to yield substantial volumes; the , where contributes over 20% of global residuum output due to its capacity to handle sour heavy crudes; and , leveraging domestic heavy grades for export-oriented production. These regions dominate because their refineries are configured for high-residue yields from denser feedstocks, contrasting with light crude processors in areas like the U.S. basins. Post-2020 trends show a rebound to pre-COVID production levels by 2022, driven by resumed maritime and industrial activity, though output stabilized thereafter amid regulatory pressures favoring low-sulfur alternatives. The forecasts modest 0.8% growth in related demand for 2025, implying flat or marginally increasing fuel supply against backdrop of IMO 2020 sulfur cap compliance, which reduced high-sulfur resid demand but spurred very low sulfur fuel () production. Geographic shifts have intensified, with Middle Eastern and Russian volumes gaining share as European refineries curtailed output in favor of cracking upgrades. Crude slate composition critically influences yields: heavy oils from and , with API gravities below 20°, produce 30-40% residuum by volume after atmospheric , compared to under 10% from light crudes (API >40°). This disparity drives production concentrations in import-dependent refineries equipped for upgrading or direct resid use, while light crude booms in have suppressed domestic fuel oil output despite overall U.S. refining capacity growth.

Classifications and Standards

General Fuel Oil Grades

Fuel oil grades for non-maritime applications, such as heating and industrial boilers, are primarily classified under the ASTM D396 standard, which defines specifications based on physical properties like , , and content to ensure compatibility with burner types and efficiency. This standard covers six main grades, from light distillates to heavy residuals, with recent updates incorporating low-sulfur variants (e.g., denoted by S500 for maximum 500 ppm sulfur) to address emissions requirements while maintaining performance criteria. Grades No. 1 through No. 4 are generally distillate or distillate-blend fuels, derived from refined middle distillates, offering cleaner with lower ash and sediment content compared to heavier grades. Grade No. 1 fuel oil, a straight-run light distillate similar to kerosene, features low viscosity (typically under 2 cSt at 40°C) and is suited for vaporizing pot-type burners in portable heaters or small appliances, providing clean-burning properties with minimal residue. Grade No. 2, the most common distillate for residential and commercial heating, has slightly higher viscosity (1.9-5.5 cSt at 40°C) and is used in atomizing burners, often as ultra-low sulfur heating oil (ULSHO) with sulfur limited to 15 ppm in compliant formulations to reduce SOx emissions. These distillates exhibit higher cetane indices and lower pour points than residuals, enabling reliable flow without preheating in cold climates. Grade No. 4 serves as an intermediate, often a blend of distillate and residual stocks, with up to 15 cSt at 50°C, targeted for larger industrial burners requiring moderate preheating and offering a balance between cost and cleanliness for applications like process heating. In contrast, grades No. 5 and No. 6 are residual fuels, produced from the heavier bottoms of crude , with significantly higher viscosities—No. 5 light under 180 cSt and No. 5 heavy over 180 cSt at 50°C, while No. 6 (also known as Bunker C) demands preheating to 104-127°C for flow due to its thick consistency. These residuals provide higher per volume (around 18,000-19,000 BTU/lb) but contain more impurities, including higher (up to 5,000 ppm in non-compliant grades) and asphaltenes, necessitating filtration and treatment for use. Post-2006 regulations have driven adoption of low- residuals (e.g., No. 6 S5000 limited to 0.5% sulfur) to mitigate environmental impacts without altering core grading based on .
GradeTypeTypical Viscosity (cSt at 50°C)Key Characteristics
No. 1Distillate<2 (at 40°C)Low residue, vaporizing burners
No. 2Distillate1.9-5.5 (at 40°C)Atomizing burners, low sulfur options
No. 4Distillate/Blend<15Intermediate for industrial use
No. 5Residual15-180+Preheating required, higher BTU
No. 6Residual>180 (preheat to flow)High , filtration needed

Maritime Fuel Specifications

Maritime fuel specifications are governed primarily by the 8217 standard, which outlines requirements for fuels used in marine diesel engines and boilers before onboard treatment, including categories for residual (RM) and distillate (DM) fuels. The enforces environmental limits under MARPOL Annex VI, notably the global sulfur cap of 0.50% m/m implemented on January 1, 2020, reducing from 3.50% to curb SOx emissions, with stricter 0.10% limits in emission control areas (ECAs). Compliance options include very low sulfur fuel oil (VLSFO) at ≤0.50% sulfur or high-sulfur (HSHFO) paired with exhaust gas cleaning systems (). Residual fuels, such as (HFO) formerly known as intermediate fuel oil (IFO) with viscosities of 180 cSt or 380 cSt at 50°C, dominate for large vessels due to cost efficiency, though post-2020 VLSFO has become prevalent for non-scrubber-equipped ships, blending residuals with compliant distillates to meet thresholds while maintaining limits of up to 380 mm²/s at 50°C for RM K grades. Distillate fuels include (MDO), a blend of gas oil and minor heavy fractions, and marine gas oil (MGO), a lighter distillate akin to automotive diesel, both with lower viscosities (e.g., ≤6.0 mm²/s at 40°C for MGO) suitable for auxiliary engines or smaller craft. Density maxima vary by grade, capped at 991.0 kg/m³ at 15°C for distillates to ensure pumpability and stability, versus up to 1010 kg/m³ for certain residuals. Safety parameters mandate a minimum flash point of 60°C (closed cup) for all marine fuels under SOLAS regulations to mitigate fire risks during handling, with bunker delivery notes required to declare values below 70°C explicitly since May 2024. Abrasive contaminants like catfines—aluminum and silicon particles from refining catalysis—are limited to 60 mg/kg (Al + Si) in ISO 8217 to avert cylinder liner wear and engine damage, a threshold unchanged across 2010–2024 editions despite rising incidents in VLSFO blends from increased cracking processes. Engine builders recommend levels below 15–20 mg/kg for optimal longevity, as larger particles (>10 µm) accelerate piston ring and fuel pump erosion. By 2025, adoption enables continued HFO use for cost advantages (typically 20–30% cheaper than VLSFO), with projections indicating approximately 25% of the global fleet fitted, concentrated in sectors like and bulk carriers where retrofit favor high-volume operations. This persistence of HFO in -equipped vessels (over 5,800 units as of early 2025) underscores a dual-fuel market, balancing compliance with operational amid stable ISO specifications updated in May 2024 to refine testing for compatibility and residual categorization.

Regional Variations

Fuel oil standards exhibit significant regional divergences, particularly in sulfur content limits, which reflect differing environmental regulations and fuel quality requirements beyond global maritime norms set by the International Maritime Organization's MARPOL Annex VI (e.g., 0.5% global sulfur cap since 2020, with 0.1% in emission control areas). In the United States, ASTM D396 specifies grades for fuel oils, with No. 2 distillate (used for heating and equivalents to diesel) subject to EPA regulations mandating ultra-low diesel (ULSD) at a maximum of 15 ppm for on-road applications since 2006, extended to non-road and heating oils in many contexts to align with emissions controls. This contrasts with less stringent pre-2006 limits of up to 500 ppm, prioritizing compatibility with advanced emission technologies. In the and , governs automotive and gas oil equivalents to lighter fuel oils, enforcing a limit of 10 mg/kg (10 ppm) since 2009, with requirements for (minimum 46) and polycyclic aromatic hydrocarbons (maximum 8%). These specs exceed global baselines for land-based uses, driven by directives like 98/70/EC, and extend to marine contexts via alignment with stricter controls. Russia's GOST standards, such as GOST 10585-99 for heavy fuel oils like , permit higher contents—up to 3.5% for residual fuels—while diesel grades under GOST R 55475-2013 allow up to 500 ppm or more in non-premium variants, diverging from Western low- mandates due to reliance on domestic high- crudes and slower adoption of desulfurization. California's Air Resources Board (CARB) imposes pioneering restrictions, limiting in diesel fuels to 500 ppm since October 1993 for vehicular use, further reduced to 15 ppm by 1993 extensions and 2006 alignments, with ocean-going vessel fuels capped at 0.1% within 24 nautical miles of the coast since 2014 to curb port emissions. The EU's directive framework, evolving from 1999/32/EC and amended by 2005/33/EC, enforced phased marine reductions in emission control areas (SECAs) to 0.1% by 2015 (from prior 1.0-1.5% allowances), yielding approximately 90% lower oxide emissions in Baltic and regions by that year through compliance monitoring and switching. These variations underscore how local policies enforce tighter specs than IMO globals, influencing trade and refinery adaptations.

Primary Uses

Heating and Industrial Boilers

Fuel oil, particularly No. 2 distillate grade, serves as a key fuel for residential boilers in cold climates, with usage concentrated in the where it heats approximately 4.5 million households during winter months. These systems rely on atomizing burners that spray the low-viscosity oil for efficient combustion in furnaces and boilers, providing reliable in regions with harsh winters and limited infrastructure. In , heating oil consumption by households totals around 20 million metric tons annually, though it accounts for less than 5% of the overall heating fuel market, overshadowed by and increasing adoption of heat pumps. Heavier residual grades, such as fuel oil, are employed in large industrial boilers for high-heat processes, including kilns and production furnaces, where preheating is required for proper atomization due to its high . These applications leverage fuel oil's superior —approximately 42-44 MJ/kg compared to 24 MJ/kg for typical —enabling about 1.8 times more per unit weight and facilitating compact storage in space-constrained industrial settings. Efficiency in legacy systems benefits from this , reducing transportation volumes relative to solid fuels like , though modern designs often incorporate controls to minimize excess air and optimize . Despite a broader shift toward and , fuel oil use in heating and industrial boilers remains resilient in cold climates, as evidenced by the U.S. Energy Information Administration's 2024-2025 Winter Fuels Outlook, which forecasts a 4% decline in national residential consumption but sustained demand in the Northeast due to established delivery networks and weather variability. Industrial applications persist where fuel oil's quick ignition and adjustable flame characteristics suit variable load demands in sectors like , though regulatory pressures on emissions are accelerating transitions to cleaner alternatives in both regions.

Power Generation and Backup Fuel

Fuel oil, particularly distillate grades, is employed in simple-cycle combustion turbines for peaking power generation, offering rapid startup times of 10 to 30 minutes to meet short-term demand spikes. , these units provided about 0.4% of in 2022, a decline from roughly 1% in , reflecting a shift toward and renewables for baseload needs. This limited usage underscores fuel oil's niche as a flexible rather than , with capacities often dual-fueled to switch from during pipeline constraints. The primary advantage lies in operational flexibility: unlike coal plants requiring 4 to 8 hours for full ramp-up, fuel oil turbines enable grid operators to address variability from intermittent renewables or unexpected loads efficiently. Stored onsite reserves further enhance reliability, mitigating risks from fuel supply disruptions, as seen in scenarios where natural gas shortages force reliance on liquid alternatives to prevent blackouts. In Asia, residual fuel oil supports baseload generation in developing economies like India and Bangladesh, where it powers oil-fired plants amid rising demand and limited gas infrastructure; regional oil's share of electricity production fell to under 3% by 2023 but persists for cost-effective capacity. Countries such as China maintain residual oil units for grid stability, though expansion favors coal and hydro. Industry outlooks project fuel oil's role remaining stable at low levels through 2025, constrained by emissions regulations and cheaper alternatives.

Maritime Propulsion and Bunkering

Fuel oil, particularly residual grades such as heavy fuel oil (HFO) and very low sulfur fuel oil (VLSFO), dominates maritime propulsion, accounting for the majority of bunker fuel used in global shipping. Annual global bunker fuel consumption exceeds 300 million metric tons, with residuals comprising approximately 84% of the market, including 54.3% VLSFO and 29.5% high-sulfur HFO (HSFO). These fuels power the international shipping industry, which transports around 90% of world trade by volume. Most large oceangoing vessels employ slow-speed, two-stroke diesel engines optimized for burning residual fuel oils, which require pre-heating to reduce for injection and . These engines achieve high , with design improvements since the enabling ships to consume roughly 30% less fuel per ton-mile compared to 1990 levels through advancements in turbocharging, , and hull designs. Such efficiencies stem from optimizations prioritizing of high- residuals, which offer cost advantages over lighter distillates despite requiring onboard treatment to remove contaminants like asphaltenes and cat-fines. Bunkering, the process of supplying fuel to ships at ports or offshore, typically involves delivery via or directly to the vessel's tanks. Quality verification occurs during or post-delivery, with on-site or tests assessing key parameters such as (often 180-380 centistokes at 50°C for intermediate and heavy grades), (to confirm content and compliance), levels, , and . These checks ensure fuel meets ISO 8217 standards, mitigating risks of engine damage from off-specification deliveries, such as excessive impeding flow or high reducing efficiency. Samples are retained for disputes, with and measurements often conducted using viscometers and densitometers per ASTM methods.

Economic Significance

Role in Global Energy Markets

Fuel oil occupies a niche but significant position in global markets, accounting for approximately 5-6% of total demand by volume, with global consumption estimated at around 6 million barrels per day amid overall oil of 103 million barrels per day in 2024. Primarily derived as a residual of crude oil , it is traded through a combination of physical spot markets, over-the-counter deals, and standardized futures contracts, such as the Singapore FOB Marine Fuel 0.5% futures on the , which benchmark low-sulfur variants for maritime use. dynamics closely track underlying crude oil volatility, with fuel oil premiums or discounts to benchmarks like influenced by crack spreads, where heavier residuum yields support margins during periods of high distillate . In 2024-2025, fuel oil prices exhibited relative stability despite broader crude market fluctuations, with bunker fuel—a key global pricing hub—averaging around $450-500 per metric ton for very low fuel oil (VLSFO) equivalents in late 2025, down from peaks earlier in the decade but supported by persistent shipping sector needs. This occurred against a backdrop of prices averaging $70-80 per barrel in 2024 before declining to forecasts of $62 per barrel in the fourth quarter of 2025, per EIA projections, reflecting ample non-OPEC+ supply growth outpacing demand. economics benefited from elevated margins for low- fuel oil production, driven by IMO 2020 sulfur regulations and steady industrial demand, even as overall fuel oil volumes remained subdued compared to lighter products like diesel. Geopolitical factors underscored supply chain vulnerabilities, notably the 2024 Red Sea disruptions from Houthi attacks, which reduced transits by over 50% and prompted vessel rerouting around , inflating bunker fuel consumption by an estimated 5-12% in affected routes due to extended voyages. These events boosted spot demand in alternative hubs like and , with global marine fuel sales rising notably in early 2024, though prices moderated as inventories adjusted and no major shortages materialized. Such incidents highlight fuel oil's exposure to chokepoint risks, amplifying trade flows from producers in the and to Asia-Pacific importers.

Contributions to Energy Security and Trade

Fuel oil serves as the primary bunker fuel for maritime shipping, where it accounts for approximately 50% of total operating costs for vessels, enabling cost-effective global transportation of . This efficiency supports the movement of over 80% of by volume, sustaining supply chains that deliver affordable commodities worldwide and contribute to alleviation through lower prices for essential imports in developing economies. The global fuel oil market reached 4.8 million barrels per day in 2023, much of which facilitates this trade via operations at major ports. In terms of , fuel oil's high and long shelf life make it ideal for stockpiling, as evidenced by requirements for member countries to maintain oil reserves equivalent to at least 90 days of net imports, including refined products like fuel oil for power generation and industrial use. Nations with domestic refining capacity, such as the following the shale revolution, achieve greater self-sufficiency in fuel oil production, minimizing vulnerability to geopolitical disruptions in crude supply. This contrasts with intermittent renewable sources, providing dispatchable baseload and backup capacity essential for grid stability during or crises. Long-term projections affirm fuel oil's persistent relevance, with forecasting global oil demand to stabilize above 100 million barrels per day through 2050, driven by irreplaceable roles in heavy and industry despite electrification trends. Such demand underscores fuel oil's contribution to trade resilience, as alternatives like biofuels or face scalability and cost barriers that preserve its economic primacy in securing affordable for global .

Transportation and Handling

Storage and Distribution Methods

Fuel oil is stored primarily in above-ground farms at refineries, terminals, and industrial sites, with residual grades requiring heating to counteract their high and prevent solidification. Immersion heaters or coils maintain temperatures typically between 50–80°C (122–176°F) to ensure pumpability, as unheated can exceed viscosities of 1,000 cSt at ambient conditions, complicating transfer operations. Storage tanks comply with regulations mandating secondary , such as bunds or double-walled designs, to contain potential leaks and mitigate environmental risks from spills. Distribution infrastructure favors bulk transport modes suited to fuel oil's properties, with pipelines limited by viscosity challenges that necessitate continuous heating, dilution with lighter distillates, or chemical additives to achieve flow rates viable for long-haul transmission. Rail tank cars and tanker trucks handle domestic and regional shipments, offering flexibility where pipelines are absent or uneconomical; for instance, of heavy oils can compete cost-wise with pipelines, with rates 12–31% lower in some North American scenarios without committed contracts. International distribution relies on oceangoing tankers, which carried approximately 29% of global seaborne in oil products as of 2022, adapting to fuel oil's through heated cargo tanks. Post-1989 Exxon Valdez spill, which released 11 million gallons of crude, the U.S. Oil Pollution Act of 1990 required double-hull tankers for oil cargoes to provide an extra barrier against breaches, reducing potential spill volumes by over 50% in similar grounding scenarios and mandating phase-out of single-hull vessels by 2015. Spill prevention technologies, including inert gas systems and enhanced hull coatings, further minimize risks during loading, transit, and unloading. Global tanker trade for fuel oil remained steady in 2024, with ton-miles rising 6% due to rerouting amid geopolitical tensions, and 2025 projections indicate sustained volumes bolstered by sanctions despite fleet expansions.

Bunkering Operations

Bunkering operations entail the controlled transfer of fuel oil from supplier barges or vessels to ships, primarily conducted in major hubs like Singapore and Rotterdam. Singapore recorded trailing twelve-month bunker sales of 55.38 million metric tons as of August 2025, while Rotterdam handles approximately 10 million tons annually. These procedures prioritize safety through pre-bunkering checklists, secure hose connections, and continuous monitoring to prevent spills and overflows. Quantity verification occurs via flow meters, tank soundings, or draft surveys, followed by joint sampling at designated points to ensure fuel meets ISO 8217 specifications, which limit parameters such as catfine content to 60 mg/kg to avoid engine abrasion. Contamination risks, including excessive catfines—aluminum silicate particles from refining processes—can lead to piston ring wear, cylinder scoring, and engine failure if not filtered adequately during transfer. Barge-to-ship transfers dominate, with the barge positioned alongside or astern of the receiving vessel, using reinforced hoses and release couplings for rapid disconnection in case of drift or rupture. measures include no-smoking zones, scuppers plugged, and spill response kits on standby, as mandated by vessel safety management systems. Advancements in digital bunkering have emerged, with Singapore requiring electronic Bunker Delivery Notes (eBDNs) from all suppliers starting April 1, 2025, to improve and reduce , in line with IMO approvals for electronic records compliant with MARPOL Annex VI. These e-certificates enable real-time verification via centralized systems, enhancing while maintaining evidentiary standards for disputes.

Environmental and Health Considerations

Emissions Profiles and Health Risks

Combustion of , especially residual (HFO), produces oxides (), oxides (), fine particulate matter (PM2.5), and (CO2) as primary emissions, with deriving directly from fuel-bound and PM2.5 arising from incomplete of high-viscosity hydrocarbons. forms through high-temperature oxidation of atmospheric during burning, while PM2.5 includes , sulfates, and metals inherent to unrefined fuel residues. HFO emissions exceed those of lighter distillate fuels like , with No. 6 HFO generating up to 93% more PM, 65% more , and 68% more SO2 per unit energy compared to No. 2 distillate. The 2020 International Maritime Organization (IMO) global sulfur cap, reducing allowable fuel sulfur from 3.5% to 0.5% mass/mass, yielded an estimated 77% drop in shipping SOx emissions worldwide by enabling compliant very low sulfur fuel oil (VLSFO) or alternatives. Untreated HFO combustion remains higher in SOx and PM2.5 than VLSFO or marine gas oil, but a 2025 Massachusetts Institute of Technology (MIT) lifecycle analysis of bulk carriers determined that open-ocean exhaust gas scrubbers mitigate SOx by 97%, rendering HFO-equipped vessels' profiles equivalent to or superior to low-sulfur fuels in sulfur and certain PM metrics when accounting for well-to-wake impacts. On an energy-normalized basis (per megajoule), fuel oil's non-CO2 pollutant yields align closely with coal's due to shared heavy hydrocarbon combustion dynamics, though exact factors vary by fuel grade and boiler efficiency. These emissions causally contribute to harms via and secondary formation; PM2.5 from HFO and diesel shipping penetrates tissue, inducing , , and in human bronchial cells, with elevated DNA damage linked to . SOx and NOx precursors form and acid aerosols, exacerbating , , and cardiovascular events. Port-adjacent communities experience disproportionate respiratory and cancer burdens, as shipping PM correlates with increased incidence through mutagenic polycyclic aromatic hydrocarbons and metals. The attributes 4.2 million annual premature deaths to ambient in 2019, predominantly from fossil combustion sources, with shipping's PM2.5, NOx, and SOx fractions conservatively linked to 265,000 global deaths in 2020—less than 10% of the total, concentrated near high-traffic harbors. Globally, shipping's CO2 emissions from fuel oil combustion accounted for about 2% of anthropogenic gases in 2023, underscoring a modest but non-negligible role relative to sectors like power generation. Empirical reveals shipping's outsized local health impacts near emission sources despite low global shares, driven by dense plumes in coastal zones.

Mitigation and Regulatory Responses

Exhaust gas cleaning systems (EGCS), or , represent a primary technological mitigation for emissions from ships using high-sulfur (HFO). Open-loop use to absorb , achieving removal efficiencies of 95-98%, while closed-loop variants employ onboard treatment of alkaline washwater, reaching up to 99% reduction. These systems enable vessels to burn cheaper HFO while meeting emission limits equivalent to 0.5% sulfur , though open-loop models discharge treated washwater, raising concerns over localized marine acidification despite IMO-approved bioavailability limits. By early 2025, over 7,400 ships worldwide were fitted with , primarily retrofits on bulk carriers and tankers, reflecting economic incentives from price differentials. The IMO's MARPOL Annex VI regulation, enforcing a global 0.5% cap on marine fuels since January 1, 2020, has driven a 77% overall reduction in ship-derived emissions, improving coastal air quality by curbing particulate matter and precursors. Post-implementation monitoring shows SO2 concentration drops of 20-50% in major ports and emission control areas, such as the and North American coasts, with broader global benefits including 3.8% SO2 reductions over Chinese coastal waters and 6.4% in the Mediterranean. Compliance via or very low- fuel oil (VLSFO) has abatement costs of $50-100 per ton of reduced, lower for large vessels where payback periods average 1-2 years against VLSFO premiums. Regulatory responses extend beyond SOx to integrated carbon pricing, with the EU ETS incorporating shipping CO2 emissions from large vessels (over 5,000 gross tons) entering EU ports starting January 2024, phased to full coverage by 2026. This adds €63-93 per ton of CO2-equivalent costs for HFO-heavy operations in EU waters, incentivizing efficiency but preserving HFO viability outside strict SOx zones when paired with . Overall, these measures have elevated compliant fuel prices by 15-30% relative to high-sulfur HFO, imposing $50-60 billion in annual global compliance burdens, though air quality gains substantiate the trade-off in empirical port data. Effectiveness varies by enforcement rigor, with scrubber uptake favoring cost-sensitive operators but requiring ongoing washwater monitoring to address secondary pollutants like polycyclic aromatic hydrocarbons.

Debates on Impact and Alternatives

The persistence of (HFO) in cold waters has fueled debates over spill risks, prompting the () to implement a ban on its carriage and use in Arctic shipping effective July 1, 2024, with full enforcement by 2029 for certain protected tank vessels. Environmental organizations argue that HFO's high exacerbates cleanup challenges and long-term damage in remote areas, though historical data indicates accidental spills constitute a negligible share of shipping's total releases, dwarfed by routine emissions exceeding hundreds of millions of tons annually. Critics of such bans, including industry analysts, contend that they overlook the rarity of major incidents and the superior of HFO—approximately three times that of LNG on a volumetric basis when accounting for storage—which enables longer ranges and fewer refuelings, potentially lowering overall lifecycle emissions compared to alternatives requiring larger tanks or more frequent . Proponents of rapid phase-outs, often affiliated with advocacy groups, emphasize HFO's contribution to black carbon deposition on ice, accelerating melt, yet economic analyses reveal high retrofit costs for distillate fuels—estimated at $9–11 million per vessel fleet in operations—without guaranteed environmental gains if alternatives like prove toxically hazardous in spills. LNG and face scalability hurdles, with LNG's methane slip undermining CO2 reductions and 's low necessitating vessel redesigns incompatible with existing fleets, while production infrastructure remains limited as of 2025. These fuels' unproven profiles at global volumes contrast with HFO's established reliability for baseload propulsion, where physics of favors liquid hydrocarbons over battery electrification, which is impractical for transoceanic voyages due to weight and recharge constraints. Forecasts indicate persistent demand for fuel oil in marine sectors, with projecting a 1.1 million barrels per day increase by mid-century amid slow adoption of zero-carbon options constrained by economics and supply chains. Deloitte's 2025 outlook anticipates modest growth in transportation fuels, including residuals, as transitions lag behind regulatory timelines due to gaps and higher operational costs for alternatives. While IMO strategies target net-zero by 2050, real-world causal factors—such as the intermittency risks absent in dispatchable fuels and the energy penalties of synthesizing green —suggest overregulation may elevate shipping costs without proportional emission cuts, prioritizing ideological goals over empirical tradeoffs.

References

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