Market conditions had been mostly kind to U.S. refiners over the past five years, but current oversupply of refined products, excess downstream capacity, and tight spreads between the two major benchmarks have considerably changed the outlook.
Although new regulations will improve efficiency and curb pollutants, the electrification of the vessels on the water and the growth of autonomy in shipping, similar to changes in the auto industry, can bring about widespread benefits.
The global oil markets have been dealing with a crude supply glut for sometime, but now the surplus has shifted to refined products. With high stocks of diesel and gasoline worldwide, oil prices, now trading in the mid-$40s, could move lower.
The diesel market is dealing with two major issues, one of which is a short-term glut and the other which surrounds questions about its long-term outlook in the wake of Volkswagen cheating on emissions testing.
As Indonesia prepares to be readmitted into OPEC at the upcoming December meeting in Vienna, it faces complex energy policy decisions, particularly in regards to fuel subsidies.
What long-term impact the scandal will have on Volkswagen sales is still difficult to say, but there is good reason to believe that European automakers will shift their emphasis to hybrids and plug-ins.
While news coverage has focused on other aspects of bilaterial talks, China and the U.S. are now among the few countries regulating fuel economy standards for heavy duty trucks.
Critics of hybrid, hydrogen and plug-in electric vehicles have pointed to clean diesel as a common-sense solution that environmentalists were ignoring for ideological reasons. The only problem is that Volkswagen had to cheat to sell them in the U.S.
Paris's one-day ban on cars looks like an empty gesture, but it complements a number of realistic solutions to the city's growing smog and congestion problems.