caribbean petroleum update june 2012

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Caribbean Energy Information System (CEIS) June 2012 In the Caribbean, the public and private transportation system relies heavily on diesel engines as these can be found in over 90% of the public buses and over 50% of the private vehicles found on the roads and in approximately 100 % of commercial vehicles. The fact that most Caribbean nations are dependent on imported fossil fuels to run these vehicles and to run industrial plants means that the more they can get out of every litre of fuel the more cost effective it is for them. Diesel engines are popu- lar due to its over 50% thermal efficiency. This coupled with the convenience of being able to move from point A to point B with- out expending too much energy is a luxury many Caribbean nationals would not want to trade. However, the exhaust emitted by diesel en- gines contains a large number of chemicals and gases as well as heavier particulate matter such as nitrous oxide, nitrogen dioxide, formaldehyde, benzene, nickel, sulphur dioxide, hydrogen sulphide, carbon dioxide, and carbon monox- ide, all of which can have signifi- cant negative health effects on humans and animals not to mention the impact on the environment. Statistics from a number of interna- tional agencies including the World Health Organization (WHO) has shown that there has been an in- crease in the number of cases of bladder cancer, lung cancer and other respiratory related diseases over the past three decades. Could it be that our increased use of diesel fuel is resulting in an increase in these health problems? In this issue of the CEIS petroleum Update we look at the possible health implica- tions of diesel fumes inhalation for Caribbean nationals. History of Diesel Engines The invention of the diesel engine or internal combustion engine by Rudolf Diesel in 1893 could be considered one of the most impor- tant developments of all times due to the role it has played in develop- ment of the industrialized world. Diesel engines since then have been used to run ships, submarines, gen- erators, trucks, etc. Since 1936 when Benz built the first diesel car these engines have been used in 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. To access CEIS website CONTACT US Caribbean Energy Information System Scientific Research Council Hope Gardens, Kingston 6, Jamaica 1-876-927-1779 (Telephone) 1-876-977-1840 (Fax) [email protected] www.ceis-caribenergy.org continued on page 2/ Image source: www.whatsonxiamen.com

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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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Caribbean Energy Information System (CEIS)

June 2012

In the Caribbean, the public and

private transportation system relies

heavily on diesel engines as these

can be found in over 90% of

the public buses and over 50% of

the private vehicles found on the

roads and in approximately 100 %

of commercial vehicles. The fact

that most Caribbean nations are

dependent on imported fossil fuels

to run these vehicles and to run

industrial plants means that the

more they can get out of every litre

of fuel the more cost effective it is

for them. Diesel engines are popu-

lar due to its over 50% thermal

efficiency. This coupled

with the convenience of

being able to move from

point A to point B with-

out expending too much energy is a

luxury many Caribbean nationals

would not want to trade. However,

the exhaust emitted by diesel en-

gines contains a large number of

chemicals and gases as well as

heavier particulate matter such as

nitrous oxide, nitrogen dioxide,

formaldehyde, benzene, nickel,

sulphur dioxide, hydrogen sulphide,

carbon dioxide, and carbon monox-

ide, all of which can have signifi-

cant negative health effects

on humans and animals not

to mention the impact on the

environment.

Statistics from a number of interna-

tional agencies including the World

Health Organization (WHO) has

shown that there has been an in-

crease in the number of cases of

bladder cancer, lung cancer and

other respiratory related diseases

over the past three decades. Could

it be that our increased use of diesel

fuel is resulting in an increase in

these health problems? In this issue

of the CEIS petroleum Update we

look at the possible health implica-

tions of diesel fumes inhalation for

Caribbean nationals.

History of Diesel Engines

The invention of the diesel engine

or internal combustion engine by

Rudolf Diesel in 1893 could be

considered one of the most impor-

tant developments of all times due

to the role it has played in develop-

ment of the industrialized world.

Diesel engines since then have been

used to run ships, submarines, gen-

erators, trucks, etc. Since 1936

when Benz built the first diesel

car these engines have been used in

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.

To access CEIS website

CONTACT US

Caribbean Energy Information System

Scientific Research Council

Hope Gardens, Kingston 6, Jamaica

1-876-927-1779 (Telephone)

1-876-977-1840 (Fax)

[email protected]

www.ceis-caribenergy.org

continued on page 2/

Image source: www.whatsonxiamen.com

page 2 Call: 1-876-927-1779 | Caribbean Petroleum Update : June 2012

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

continued on page 3/

CARIBBEAN’S DEPENDENCE ON DIESEL FUEL THREATENS OUR HEALTH AND ENVIRONMENT ...continued from page 1

on-road and off-road vehicles. In

the 1970s there became increased

use of diesel engines in larger on-

road and off-road vehicles in the

USA and since 2007 approximately

50 percent of all new car sales in

Europe have been diesel engines.

The popularity of the diesel engine

has also been growing in the

Caribbean thereby increasing the

exhaust fumes emitted and inhaled

by Caribbean residence.

What are the effects of diesel

fumes inhalation?

Research has shown that the inhala-

tion of diesel fumes can create a

number of short-term and long-term

health effects. The short-term health

effects may last from a few minutes

to a few days and could include

feeling light-headed or "high;"

burning in the eyes, nose, and

throat; heartburn; headache; unusual

sensations in the extremities; diffi-

culty breathing; tightness in the

chest; and vomiting. The long-term

effects can result in more chronic

ailments, most of which affect

the lungs. Studies undertaken by the

WHO suggests that people exposed

to these emissions over a long

period of time are more likely to

have chronic respiratory symptoms,

bronchitis, emphysema, reduced

lung capacity, asthma attacks and

inflammation of lung tissue. All of

these effects inhibit breathing and

impact the well-being of the

individual. The elderly and children

are most vulnerable to these ail-

ments.

One of the most life threatening

long-term health effects of diesel

fumes inhalation is classified in a

word many people in the Caribbean

are afraid of hearing - “Cancer.” A

number of organizations including

the WHO, International Agency for

Research on Cancer (IARC) and the

U.S. Environmental Protection

Agency (EPA) for over 20 years

have all concluded that the particu-

late matter from diesel exhaust is

able to enter deep into the lungs and

damage DNA, which can lead to

cancer. As such, diesel engine ex-

haust fumes was classified as

probably a human carcinogen -

group 2A. However, in June 2012

the IARC an arm of the WHO an-

nounced that they have reclassified

diesel exhausts from its group 2A of

probable carcinogens to its group 1

of substances that have definite

links to Cancer. What does this

mean for people who on daily basis

inhale large amounts of these

fumes? The answer is simple, their

lives are more at risk and we must

urge people to reduce their exposure

to diesel fumes as much as possible.

Diesel is now in the same risk cate-

gory as a number of other noxious

substances including asbestos, arse-

nic, mustard gas, alcohol and to-

bacco.

In 2009, statistics from the WHO

indicated that 70% of cancer deaths

occurred in low and middle income

countries - the category in which

most Caribbean countries fall. The

statistics also indicated that this is a

growing concern as there are

approximately 10 million newly

diagnosed cancer cases occurring

annually and over 7 million deaths

ensuing from the disease world-

wide. It is also important to note

that in addition to the heighten

awareness of the effects of diesel

fumes as it relates to being a cause

of Cancer, there are a variety of

other deadly health effects that are

caused by the same fumes. The

emissions from the diesel engine

contain a number of chemicals one

of which is carbon monoxide which

can aggravate heart disease and af-

fect coordination. Studies have

found that diesel fumes can increase

blood clot formation and blood

platelet activity in healthy subjects,

raising their risk of heart attack and

stroke. Diesel fumes have also been

shown to increase the rates of infant

death and premature birth.

In addition to the direct health

effects caused, there are some

Caribbean Petroleum Update : June 2012 | Call: 1-876-927-1779 page 3

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

indirect effects such as increase

in global warming caused by the

number of greenhouse gases emit-

ted. Global warming can lead to a

number of other ill effects if left

unchecked. There are also in-

stances where the decreased visibil-

ity arising from diesel exhaust on

our roads, have lead to increases in

accidents. Below is a table showing

the basic toxic materials contained

in diesel fumes:

Carbon monoxide (CO), hydrocar-

bons (HC), and aldehydes are

generated in the exhaust as the

result of incomplete combustion of

fuel. Hydrocarbons also have a

negative environmental effect,

being an important component of

smog.

Nitrogen oxides (NOx) are gener-

ated from nitrogen and oxygen

under the high pressure and tem-

perature conditions in the engine

cylinder. NOx consist mostly of

nitric oxide (NO) and a small

fraction of nitrogen dioxide (NO2).

Nitrogen dioxide is very toxic. NOx

emissions pose serious environ-

mental concerns.

Sulphur dioxide (SO2) is generated

from the sulphur present in diesel

fuel. The concentration of SO2 in

the exhaust gas depends on the sul-

phur content of the fuel. However,

the sulphur in diesel used in the

Caribbean is very high. Sulphur

oxides have a profound impact on

environment being the major cause

of acid rains.

Diesel particulate matter (DPM),

as defined by the EPA regulations

and sampling procedures, is a com-

plex aggregate of solid and liquid

material. Generally, DPM is

divided into three basic fractions:

Solids- dry carbon particles,

commonly known as soot, SOF- heavy hydrocarbons

adsorbed and condensed on the

carbon particles, called Soluble

Organic Fraction,

SO4- sulphate fraction,

hydrated sulphuric acid.

The actual composition of DPM

will depend on the particular

engine, its load and speed condi-

tions. "Wet" particulates can

contain up to 60% of the hydrocar-

bon fraction (SOF), while "dry"

particulates are comprised mostly

of dry carbon. The amount of

sulphates is directly related to the

sulphur contents of the diesel fuel.

Conclusion

It is evident that our dependence on

diesel fuels has reaped negative

health effects and will continue to

be to our detriment if we do not

identify other more environmen-

tally friendly ways in which we

fuel our buses, cars and industries.

People in urban areas are more at

risk to diesel exhaust fumes.

Caribbean citizens who are in-

volved in trucking, heavy construc-

tion and mining are to be more

concerned about the long-term

health effects resulting from long-

term exposure to diesel exhaust

fumes - many are not aware of

these effects.

According to the IARC/WHO, the

greatest risk from long-term expo-

sure to diesel exhaust appears to be

lung cancer. Other long-term health

effects or dangers include asthma

and other lung diseases, heart dis-

ease and immune system disorders.

This is further compounded by the

number of chemicals emitted

resulting in global warming. The

environment is coming under ever-

closer scrutiny as the rise in rates

of greenhouse gases, cancer and

other diseases becomes increas-

ingly difficult to explain. In light of

this it is imperative for us to do our

part in preserving the our lives and

the environment by reducing our

use of diesel fuels thereby reducing

exhaust fumes inhalation.

CARIBBEAN’S DEPENDENCE ON DIESEL FUEL THREATENS OUR HEALTH AND ENVIRONMENT ...continued from page 2

Table 1

CO HC DPM NOx SO2

vppm vppm g/m3 vppm vppm

5-1,500 20-400 0.1-0.25 50-2,500 10-150

Source: http://www.nett.ca

page 4 Call: 1-876-927-1779 | Caribbean Petroleum Update : June 2012

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

CC A R I BA R I B PP E T R O L E U ME T R O L E U M NN E W SE W S & H& H A P P E N I N G SA P P E N I N G S

CUBA

Venezuela Plans $40 Million Investment In Cuban

Oil Exploration >> 30/06/2012

Venezuelan oil company to drill off Cuba >>

28/06/2012

JAMAICA

Lower Fuel & IPP Charge on Bills This Month >>

12/06/2012

JPS Meter Testing Lab and Calibration Centre now

Internationally Accredited >> 08/06/2012

Gov't removes GCT from residential light bills >>

06/06/2012

GCT Removed from Electricity Used by Residential

Customers >> 06/06/2012

BELIZE

Maranco begins exploration permitting process >>

19/06/2012

GUYANA

Guyana signs agreement with major US oil explora-

tion and production company >> 27/06/2012

TRINIDAD & TOBAGO

Rowan jackup spuds Shadow prospect offshore Trini-

dad >> 12/06/2012

INTERNATIONAL

Venezuela asks Gulf oil nations to cut back output >>

13/06/2012

Statoil buys FPSO unit in Brazil from

Maersk >> 12/06/2011

Bolivia increases gas exports to Bra- zil

and Argentina >>12/06/2012

Chavez plans to double oil-output capacity by 2019

>> 12/06/2012

Oil falls on fresh signs of global slowdown >>

03/06/2012

Oil price climbs ahead of crucial Greece election >>

17/06/2012

Japan moves closer to restarting nuclear reactors >>

15/06/2012

President Goodluck Jonathan sacks Nigeria oil bosses

>> 27/06/2012

Shortages: Is 'peak oil' idea dead? >> 19/06/2012

Trinidad Point-a-Pierre State-run Oil-refinery Petrotrin Petroleum

Caribbean Petroleum Update : June 2012 | Call: 1-876-927-1779 page 5

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP

June 2012

Retail prices for Regular Unleaded Gasoline in the sixteen Caribbean countries at the end of June 2012 reflected stable prices in three countries when compared to the previous month. Marked decreases were seen in nine countries where the

decrease in international crude oil prices in previous months were now being reflected. However, despite the reduction in

Crude prices in the previous month, four countries (Barbados, Dominica, Guyana and St. Lucia) reflected slight increases in prices which suggest that the benefits were not yet realized by the consumers in these countries.

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% Etha-

nol.

CHART:

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

Regular Unleaded Gasoline Average Retail Price (US$/Litre) 2012

COUNTRIES J A N F E B M A R 6 Mths AVG APR MAY JUN

ANTIGUA/ BARBUDA 1.23 1.23 1.23 1.23 1.23 1.23 1.23

BAHAMAS [91 OCT] 1.33 1.35 1.44 1.42 1.46 1.47 1.46

BARBADOS 1.55 1.59 1.66 1.68 1.72 1.77 1.78

BELIZE [87 OCT] 1.41 1.45 1.51 1.49 1.54 1.55 1.49

B.V.I [87 OCT] 1.26 1.27 1.29 1.28 1.29 1.29 1.29

DOMINICA 1.12 1.14 1.19 1.22 1.25 1.30 1.33

GRENADA (95 OCT) 1.23 1.28 1.36 1.34 1.42 1.42 1.36

GUYANA 1.11 1.08 1.09 1.12 1.09 1.16 1.17

JAMAICA 87 Octane[E10] 1.23 1.30 1.32 1.30 1.37 1.32 1.27

MONTSERRAT 1.19 1.21 1.29 1.31 1.39 1.41 1.40

ST. KITTS/ NEVIS 1.20 1.19 1.32 1.25 1.29 1.28 1.24

ST. LUCIA 1.21 1.22 1.22 1.23 1.24 1.25 1.27

ST. VINCENT/ GRENADINES 1.19 1.16 1.13 1.17 1.17 1.21 1.17

SURINAME [95 OCT] 1.40 1.43 1.49 1.47 1.52 1.54 1.46

TRINIDAD/ TOBAGO [92 OCT] 0.42 0.42 0.42 0.42 0.42 0.42 0.42

TURKS/ CAICOS 1.58 1.58 1.61 1.66 1.70 1.78 1.68

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

US$/

Litre

16 Caribbean Countries

Comparative Retail Pump PricesRegular Unleaded Gasoline

JUNE Avg vs6 Mths Avg (Jan - June 2012)

JUN

AVG

page 6 Call: 1-876-927-1779 | Caribbean Petroleum Update : June 2012

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

An assessment of International Crude Oil prices over

the six months period Jan. —Jun. 2012 saw prices in

January averaging over US$100/BBL. This trend

continued up to the end of April when prices were

seen at US$103.2 then declining in May to a wel-

comed average price of US$88.9/BBL. At the end of

June, the average price for the product was US$81.76/

BBL which indicated a 26% reduction in the price for

the product when compared to the average price seen

in January of 2012. This is a welcomed reduction for

Caribbean consumers.

Featured Offers:Featured Offers:Featured Offers:

Caribbean Energy Information System (CEIS)

primary report of historical annual petroleum energy

statistics provided for 18 Caribbean Countries.

Included are data on total energy production,

consumption, and trade; overviews of petroleum,

natural gas, electricity, as well as financial and

environmental indicators for over twenty years.

US$/B

BL

76.19

88.14

109.61

38

48

58

68

78

88

98

108

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg

US$

/BBL

Period

Average Monthly World Crude Oil Prices (2009 - 2011)

2009 2010 2011

Subscriptions If you wish to subscribe (free of charge) or cancel your

subscription to the CARIBBEAN PETROLEUM UPDATE, send us an email at:

[email protected]

See CEIS FOR MORE: www.ceis-caribenergy.org

Join us through CIPORE on Facebook, Twitter, LinkedIn

and Subscribe to our RSS Feed

0.0 20.0 40.0 60.0 80.0 100.0 120.0

JAN

FEB

MAR

APR

MAY

JUN

100.5

101.3

106.0

103.2

88.9

81.76

102.4

97.8

107.5

103.5

97.0

84.03

100.4

98.6

106.3

102.6

93.1

82.00

99.9

101.7

106.2

103.2

90.9

81.00

99.4

107.2

106.4

103.8

87.1

80.00

US$/BBL

M

o

n

t

h

s

International Crude Oil PricesWkly & Mthly Averages for 6 mths (Jan Jun 2012)

WK 4

WK 3

WK 2

WK 1

Mth Avg