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Caribbean Energy Information System (CEIS) May 2011

Diesel vehicles manufactured after 2006 use a Particulate Filter which traps the particles of soot in the exhaust coming from the engine.

D

iesel is the most widely used petroleum based fuel in the Caribbean. Although not the most environmentally friendly fuel, it keeps the Caribbean economies moving. From movement of goods, to the generation of electric power, to transportation of people, to increased efficiency on farms, diesel fuel plays a vital role in improving the standard of living within the region. Over the years technological advancement focused on reducing emissions has aided the development of a new grade or standard of diesel. This new grade of diesel referred to as Ultra-low-sulphur diesel (USLD) is a new standard proposed by United States Environmental Protection Agency - EPA for the sulphur content in on road diesel fuel. Although this type of diesel fuel is not an alternative fuel, it provides important environmental and fuel saving benefits especially when produced from non-petroleum and renewable resources. USLD enables the use of advanced emission control technologies (catalytic converters and particulate traps) to reduce or eliminate pollutants to the environment such as Nitrogen Oxide (NOx) and Particulate Matter (PM). All diesel vehicles can use Ultra-low-sulphur diesel. However, diesel vehicles manufactured after 2006 are specifically designed to use ULSD. Caribbean countries do not currently import and use USLD.

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STEP 1: the filter traps the tiny particles of soot in the exhaust fumes. STEP 2: The filter uses a sensor that measures back pressure, or the force required to push the exhaust gases out of the engine and through to the tailpipes. STEP 3: As the soot particles in the particulate filter accumulate, the back pressure in the exhaust system increases. When the pressure builds to a certain point, the sensor tells the engine management computer to inject more fuel into the engine. This causes heat to build up in the front of the filter, which burns up the accumulated soot particles. The entire cycle occurs within a few minutes and is undetectable by the vehicle's driver. Source: http://auto.howstuffworks.com/fuel-efficiency/ alternative-fuels/how-clean-diesel-fuel-works1.htm

CONTACT US Caribbean Energy Information System Scientific Research Council Hope Gardens, Kingston 6, Jamaica

1-876-927-1779 (Telephone) 1-876-977-1840 (Fax) ceis@src-jamaica.org www.ceis-caribenergy.org

CARIBBEAN PETROLEUM UPDATE is a monthly Bulletin which highlights petroleum issues affecting or relevant to the Caribbean, international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.


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Call: 1-876-927-1779 | Caribbean Petroleum Update : May 2011 Diesel Type

PPM

Where Used?

Avg Retail Price per litre May 30, 2011 (US$)

Ultra-Low-Sulphur Diesel

IMPLICATIONS OF USING REGULAR MANUFACTURED AFTER 2006

DIESEL IN VEHICLES

15 maximum

Using regular diesel in these vehicles can affect their performance and the emission control technologies with which they are built. This can cause serious damage to the engines thereby voiding the Manufacturer’s warranty or preventing the vehicle from operating. The efficiency and durability of these vehicles can be affected if regular diesel is used. Continued use of high sulfur diesel fuel increases the risk of health problems in the Caribbean, some of which include brain damage, asthma or other lung related problems. Diesel emissions such as SO2 (Sulfur Dioxide) are contributing to Global warming, and are therefore of concern. The accompanying table shows the comparison in terms of parts per million mass (PPM) and retail pump prices for the different Diesel standards.

Petroleum News & Happenings

$1.04 (Source: EIA, USA) $1.19 (Source: Gas Buddy, Canada)

Low-Sulphur Diesel

500 less

Canada, Australia et. al

Regular Diesel

500 higher

Caribbean et. al $1.20 (Source: CEIS, Caribbean)

continued from page 1/ However, these countries have seen an increase in imports of diesel vehicles manufactured after 2006. What does this mean for consumers?

Europe, USA, Canada, USVI

Note: - The Cetane rating for diesel used in the Caribbean ranges between 38 and 50. - On average within the Caribbean, diesel fuel at the pumps is at 5000 PPM as compared to USLD which is at 15 PPM. As seen above, the retail price for USLD is even lower than for regular diesel. This means that imports of USLD to the Caribbean should not result in any additional cost for the fuel itself and no special storage is required. Should the Caribbean make the switch? Why hasn’t that happen you may ask? Well the answer is simple, only a few refineries currently produce USLD and therefore accessing the fuel in the volumes required can be problematic for Caribbean importers. Trinidad and Tobago and Jamaica are the only two CARICOM countries that currently produce diesel. However the Cetane rating (38 – 45) for the diesel produced by Trinidad ranges between 800 PPM and 1000 PPM while in Jamaica regular diesel produced with Cetane rating (45 - 50) has 3000 PPM. Both refineries are not currently equipped to produce USLD and facilitating this would require large investments. Trinidad and Tobago is currently upgrading the Petrotrin Refinery for production of USLD. This is expected to be completed by June 2012 with a production target of 40,000 barrels per day. If this gets off the ground it can only be of benefit to the region as the demand for diesel has been increasing. 

Sagres Energy seeking joint-venture partner to explore for Jamaican oil >> 27/4/2011 Fuel prices rise for second week.>> 27/4/2011 Bahamas oil exploration company confident it will start drilling in 2012.>> 21/4/2011 PetroCaribe surplus growth slows .>> 20/4/2011 Cuba, partners to drill 5 Gulf wells this summer.>> 6/4/2011 Chavez wants Barbados to sign PetroCaribe .>> 5/4/2011 Chevron completes sale of Caribbean business .>> 5/4/2011

What do you think about this Issue? Share your thoughts with us at

ceis@src-jamaica.org

No Total takeover.>> 3/4/2011

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Caribbean Petroleum Update : May 2011 | Call: 1-876-927-1779

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REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP January - May 2011 Despite efforts by some Caribbean Governments to cushion the impact of increases in International Crude Oil prices, Caribbean Consumers continue to see challenging increases in retail fuel prices at the pumps. Table 1 and Chart 1 below provide a synopsis of the average prices seen for Regular Unleaded Gasoline. Table 1: Unleaded Gasoline: Regular : Average Retail Price – January - May (US$/Litre) 2011 COUNTRIES ANTIGUA/ BARBUDA

JAN 1.00

FEB 1.00

MAR 1.07

APR 1.15

MAY 1.25

AVG

BAHAMAS [91 OCT]

1.24

1.25

1.30

1.46

1.47

1.35

BARBADOS BELIZE [87 OCT]

1.47 1.33

1.48 1.34

1.49 1.48

1.59 1.50

1.59 1.54

1.53 1.44

1.09

B.V.I. [87 OCT]

1.12

1.13

1.20

1.26

1.26

1.20

DOMINICA GRENADA (95 OCT)

1.01 1.05

1.05 1.06

1.06 1.17

1.11 1.23

1.21 1.29

1.09 1.16

GUYANA

0.99

0.99

1.06

1.08

1.08

1.04

JAMAICA (87 OCT[E10]) MONTSERRAT

1.17 1.13

1.18 1.14

1.25 1.18

1.28 1.27

1.29 1.38

1.23 1.22

ST. KITTS/ NEVIS

1.04

1.07

1.20

1.13

1.14

1.11

ST. LUCIA ST. VINCENT/GRENADINES

1.14 0.99

1.14 0.98

1.16 1.00

1.22 1.06

1.27 1.10

1.18 1.02

SURINAME [95 OCT]

1.21

1.32

1.34

1.47

1.55

1.38

TRINIDAD/TOBAGO [92 OCT] TURKS/CAICOS

0.42 1.36

0.42 1.36

0.42 1.42

0.42 1.42

0.42 1.45

0.42 1.40

. NOTE: *US Gallon = 3.785 L *Imperial Gallon = 4.546 L *As at November 1, 2009 MTBE was phased out from all gasoline blends in Jamaica and replaced with 10% Ethanol.

CHART 1

See prices for other products at www.ceis www.ceis--caribenergy.org . C

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Call: 1-876-927-1779 | Caribbean Petroleum Update : May 2011

US$/BBL US$/BBL

Average Weekly & Monthly Crude Oil Prices (Jan - May 2011)

2011-Jan 2011-Feb

160

2011-Apr

140

2011-May

120 100 80

103.54

60

40 20

Over the four-month period (February - May) International Crude Oil prices for the most part, remained above the US$100/BBL mark for the last two months. The highest price (US$119.42/ BBL) seen over the period was in the third week of April. This resulted in uncertainties in retail prices for refined petroleum products in most Caribbean Countries where prices were already on the increase. As compared to the record oil price year of 2008, the highest price seen over this period was approximately 19% lower than the highest price of approximately US$147/BBL seen during that year.ď‚Ą

0

WK2

WK3 Weeks

WK4

Mth Avg

US$/BBL

WK1

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CEIS Petroleum Update May2011  

Caribbean Energy Information System Scientific Research Council Hope Gardens, Kingston 6, Jamaica STEP 1: the filter traps the tiny particle...

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