caribbean petroleum update june 2012
DESCRIPTION
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.TRANSCRIPT
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)
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
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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