Shipping Wasting 4.37 Million Barrels of Oil a Day

Tue Jun 24, 2008 5:14am EDT

* Reuters is not responsible for the content in this press release.

As Saudi Arabia announces a 200,000 barrel a day increase in oil
   production, new research reveals shipping industry wasting 4.37m
 barrels of fuel per day; huge fuel consumption and costs predicted to
               continue to rise without drastic re-think
LONDON--(Business Wire)--
As Saudi Arabia announced a 200,000 barrel increase in oil
production and consumers grapple with record pump prices and fuel
shortages, the shipping industry today consumed 4.37 million barrels
of oil unnecessarily, new research has revealed.

   The figures, from leading maritime technology company DK Group and
backed by United Nations-commissioned research, prove that ships are
wasting the equivalent of more than $140 billion of consumers and
investors money in fuel costs per year and emitting an extra 672
million tonnes of CO2 per year (more than the aviation industry's 600
million tonnes CO2).

   Despite this, the UN body that regulates shipping, the UN body,
the International Maritime Organisation (IMO), refers to current
technology, such as twin propellers, as 'voluntary'.

   The shipping industry consumes 369 million tonnes of bunker fuel
each year, equivalent to 7.29 million barrels a day or 2.66 million
barrels per year - a staggering 8.5% of global oil supplies. According
to research commissioned by the IMO, current 'voluntary' technologies,
including twin propellers and hull design efficiencies could reduce
fuel consumption and oil usage by '30-40%'.

   Last week, one of the world's leading shipping companies admitted
that shipyards were dragging their heels in addressing new
technologies. Tey Yoh Huat, APL's vice president of technical services
admitted: "Shipowners and operators are currently in the spotlight,
facing much more public scrutiny than refiners or
shipyards...shipyards must play their part, too."

   According to Tey, "shipyards can build ships designed for greater
efficiency and put in engines which burn fuel more efficiently and
pollute less," but fail to take the initiative to do so.

   When technology efficiencies of 30-40% are added to the current
trend for slowing down vessels to reduce fuel consumption then
shipping's fuel wastage is truly exposed, according to DK Group
founder Jorn Winkler.

   "If slow steaming is combined with technologies we will see
drastic reductions that can reach more than 50% in reduced fuel usage
and costs, which equates to 4.37 million barrels a day. When compared
to current ship fuel use levels, it means saving almost half of the
production in Saudi Arabia, which given global demand for oil
represents corporate irresponsibility" said Winkler.

   Referring to the first IMO meeting to discuss greenhouse gases and
global warming, being held this week in Oslo, DK Group CEO Christian
Eyde Moeller added: "The best way IMO can ensure shipping is less
wasteful and more efficient is by creating a new industry standard
that forces ship yards to adjust rapidly to modern technology and
modern design.

   "The IMO should present solutions that makes it understandable and
visible for end users that 'green transportation' and high fuel prices
has a price; shipping has for too long been the elephant in the corner
while consumers and investors pay the prices for its inefficiencies,"
Eyde Moeller concluded.

Jorn P. Winkler
Founder
www.dkgroup.eu
DK Group Netherlands B.V.
Weena 340
3012 NJ Rotterdam
The Netherlands
Email : winkler@dkgroup.eu
Tel : +31 10 213 1845
Fax : +31 10 412 6115.
UK M : + 44 7942 361 389
DK M : + 45 21 62 39 34
Skype: jornpwinkler

Copyright Business Wire 2008
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