Shipping Wasting 4.37 Million Barrels of Oil a Day
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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 : email@example.com 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