With the ongoing concern of climate change and the recent crisis in Ukraine, crude oil has been a key topic in the shipping industry. Although there is no exact date on the expiry of oil, Ritchie and Roser believe oil will run out in 51 years, whereas other sources predict a much earlier date as soon as 2052 (Roser, 2020). Due to the heavy reliance on fossil fuels for the power of global energy systems, there is constant pressure on finding solutions. As of 2021, the shipping industry accounts for 940 million tonnes of CO2, which is at least 2.5% of the world’s total CO2 emissions (UK Research and Innovation, 2021).
The advancements and recognition of this problem are clear from the fact in 2014, the IMO rejected a proposal on capping emissions, reassuring us that the issue would be ‘addressed at an appropriate future date’. However, in August 2021, the IMO has set a target to cut emissions by 50% before 2050. In response, the UK government has been the first to add emissions from international shipping in its domestic carbon budget (Gov.uk, 2021), highlighting the importance of solving this issue.
In recent news, the Russian Invasion of Ukraine has caused major disruptions for the industry, with many vessels stuck in ports and freight costs increasing (Murray, 2022). With the closure or restrictions of shipping lanes in the seas surrounding the current crisis, vessels are being forced to divert their routes. Consequently, increasing the amount of oil needed and emissions being released.
Although Covid pressure has eased, Russian sanctions have catapulted oil prices, affecting many shipping companies. Not only increased prices but increased delays are occurring as vessels are diverting paths to avoid any potential conflict in the black sea.