the oil gas tipping point & business case economics
TRANSCRIPT
![Page 1: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/1.jpg)
1 © Wärtsilä
The Oil Gas Tipping Point & Business Case Economics…
LNG Fuel & RegulationsRenaissance Hotel4 February 2016Seattle, WA
John Hatley PE LNG Initiatives ( MBA, MSE)
Americas VP Ship PowerWartsila North America, Inc.
Cell +1 281 221 [email protected]
![Page 2: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/2.jpg)
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Keys
Global Energy Policies, market gamesmanship ?
Future Ahead, structural shifts?
As a vessel owner, all I want to knowis the tipping point…
What fuel strategy do I choose to to boost my bottom line?
As an LNG supplier, I want to alsoknow the tipping point….for infrastructure investment positioning.
2 © Wärtsilä
![Page 3: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/3.jpg)
Agenda
3 © Wärtsilä
What ? Fuel Price vs. CostEnergy
Why & How ? No. Am ECA & EmissionsOwner ChoicesSCR, Scrubber, LNG Abatement
Business Case Cargo, Investor, Banker Views185K BBL ATBInvestment Returns
Oil Price Shock ! Business Case: Robust or Fragile?Stress Test
Conclusions Tipping PointBusiness Case Appendix
![Page 4: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/4.jpg)
Agenda
4 © Wärtsilä
What ? Fuel Price vs. CostEnergy
Why & How ? No. Am ECA & EmissionsOwner ChoicesSCR, Scrubber, LNG Abatement
Business Case Cargo, Investor, Banker Views185K BBL ATBInvestment Returns
Oil Price Shock ! Business Case: Robust or Fragile?Stress Test
Conclusions Tipping PointBusiness Case Appendix
![Page 5: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/5.jpg)
Quiz…. Fuel Price ?
a) HFO 400.50 $ / ton ….
b) MDO 433.35 $ / ton .…
c) LNG 500.00 $ / ton ….
5 © Wärtsilä
Which is the lowest price ?
![Page 6: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/6.jpg)
The Price Paid for what it Cost
6 © Wärtsilä
: the amount of money that you pay for something
: the price of something : the amount of money that is needed to pay for or buy something
![Page 7: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/7.jpg)
Quiz… Fuel Answer Key
a) HFO 400.50 $ / ton ….
b) MDO 433.35 $ / ton .…
c) LNG 500.00 $ / ton ….
7 © Wärtsilä
Which is the lowest price ?
Key concept… purchase energy, not tons or gallons, which is the lowest cost per unit of energy?
10.70 $ / million BTU
10.70 $ / million BTU
10.70 $ / million BTU
Reference Common Values that will vary…HFO 37,430 BTU/kg MDO 40,500 BTU/kg LNG 46,720 BTU/kg 980 kg/ m3 850 kg/ m3 430 kg/ m3
![Page 8: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/8.jpg)
Agenda
8 © Wärtsilä
What ? Fuel Price vs. CostEnergy
Why & How ? No. Am ECA & EmissionsOwner ChoicesSCR, Scrubber, LNG Abatement
Business Case Cargo, Investor, Banker Views185K BBL ATBInvestment Returns
Oil Price Shock ! Business Case: Robust or Fragile?Stress Test
Conclusions Tipping PointBusiness Case Appendix
![Page 9: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/9.jpg)
Emission Control Areas
9 © Wärtsilä
![Page 10: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/10.jpg)
2015 ECA 0.1% Sulfur
10 © Wärtsilä
Scrubber targets SOx, Selective Catalytic Reducer targets NOx, LNG targets CO2, NOx, PM, SOx.
![Page 11: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/11.jpg)
How clean is Natural Gas compared to Diesel ?
DF Natural Gas Engine
DieselEngine
0
20
40
60
80
100
Emissionvalues [%]
CO2
NOx
SOx
Particulates
-25%
-85%
-99%
-99%
Gas = ULTRA CLEAN
LNG provides significant emission reductions compared to traditional diesel engines
![Page 12: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/12.jpg)
North America ECA SOx & NOx
12 © Wärtsilä
Fuel Sulfur2012… 1% Limit2015… 0.1% Limit
EPA Category 3 2016… NOx Tier III & EPA Category 2 … NOx Tier 3, 4
![Page 13: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/13.jpg)
2015 ECA + 2016 NOx Vessel Owner Choices
1. Consume compliant Low Sulfur Distillate… champagne fuel + Selective Catalytic Reduction for NOx
2. Switch to LNG fuel: safe, clean, abundant, affordable, & available natural gas LNGReduction: CO2, NOx, SOx, PM
3. HFO Alternative Compliance… install scrubber for Sox + Selective Catalytic Reduction for NOx
4. Abort the Port
3 May 2023
ECA and SECA mandates force timely newbuild choices…
+ SCR
+ SCR
![Page 14: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/14.jpg)
Diesel + SCR LNG HFO + SCR + Scrubber
14 © Wärtsilä Source: Wartsila Moss White Paper: Exhaust Gas Cleaning: How to Choose the Correct Scrubber, Jennifer Ahlback, 2014.
Lots of baggage as systems require host support; chemicals, tanks, waste sludge, piping/pumps, controls/automation, soot blowers…
![Page 15: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/15.jpg)
Wartsila NOx Reducer System
15 © Wärtsilä
Soot Blower
Air
Pump
Mixing Duct
Dosing Unit
NOR Reactor
Controls
Urea Tank
CompressedAir
Mixing & Injection
![Page 16: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/16.jpg)
LNGPac System
16 © Wärtsilä
Source: http://www.wartsila.com/media/news/26-08-2014-wartsila-launches-new-technical-solution-for-fuel-gas-handling
![Page 17: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/17.jpg)
17 © Wärtsilä
Exhaust Gas Fan
Alkali Feed Module
Bleed-Off Treatment
Process Tank
Alkali Storage Tank
CW Pump
Heat Exchgr
Scrubbing Water Pump
Exhaust Gas Analyzer
Sludge Tank
Water Measurement
Water Measurement
De- Plume Unit
Holding Tank
![Page 18: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/18.jpg)
Agenda
19 © Wärtsilä
What ? Fuel Price vs. CostEnergy
Why & How ? No. Am ECA & EmissionsOwner ChoicesSCR, Scrubber, LNG Abatement
Business Case Cargo, Investor, Banker Views185K BBL ATBInvestment Returns
Oil Price Shock ! Business Case: Robust or Fragile?Stress Test
Conclusions Tipping PointBusiness Case Appendix
![Page 19: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/19.jpg)
Cautionary Remarks
Each investment case requires careful analysis, inclusion, and weighing a broad variety of issues stemming from technical, financial, operational, regulatory, and other areas.
The purpose of this exercise is to illustrate a Business Case example and how a few of many key considerations may be transcribed into financial modeling as an aide to decision making.
Readers are advised that neither the Author nor Wartsila nor it’s subsidiaries are responsible for any errors, omissions, or updates to this information contained herein or assumptions or derivations whatsoever.
20 © Wärtsilä
This presentation is no substitute for your good and responsible decision making. Please utilize prudence and caution when making investment decisions along with securing the advice and guidance of professionals.
![Page 20: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/20.jpg)
4 Viewpoints
21 © Wärtsilä
SHIP OWNER
BANKER
PUBLIC
Transport safely at
optimal cost reliably
At fair return capturing
risks
Are risks understood
& I’m repaid !
Ultimate Environment
Safety
CARGO OWNER
![Page 21: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/21.jpg)
4 Key Metrics
22 © Wärtsilä
SHIP OWNER
BANKER
PUBLIC
All In Charter
Freight rate $ / ton
Return on Investment:
ROIC, EBITDA, cash flows
EBIT, Times Burden Cover,
cash flows
Ultimate Environment
Safety
CARGO OWNER
![Page 22: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/22.jpg)
The Route… Anacortes – San Pedro
23 © Wärtsilä
Emission Control Area100% “ECA” Bound route…1199 Nautical Miles coastwise loading/discharge ops 1 day / port359 operating days6 weather days Source: http://www.vesseldistance.com/
![Page 23: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/23.jpg)
Business Case Vessel
Jones Act Articulated Tug Barge
New Build January 2016 … EPA Tier 3
185,000 BBL Capacity
Speed 11+ knots with margin, Twin Screw
Installed power 10,800 HP ( 8,000 kW )
Manning 14 & SOLAS Compliant
Major Class Society
24 © Wärtsilä
Speed provides 32 annual round trips from Anacortes to San Pedro… vessel size yields competitive low cost BBL delivery economics
![Page 24: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/24.jpg)
Recall ?
25 © Wärtsilä
![Page 25: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/25.jpg)
Then… 5 August 2014
26 Wärtsilä
Recent Prices: LS180 1% 636 $/mt… LSMGO 0.1% 971 $/mtSource: http://www.bunkerworld.com/prices/port/us/hou/
![Page 26: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/26.jpg)
Cargo Owner Transport safely at optimal cost reliably
27 © Wärtsilä
Cargo owner finds transport cost similar, but LNG advantage captures significant emissions savings supporting Green goals.
![Page 27: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/27.jpg)
Ship Owner A fair return capturing risks
28 © Wärtsilä
Compelling fuel payback for vessels running on LNG fuel; an initial screening tool … not a good investment metric.
![Page 28: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/28.jpg)
Ship Owner A fair return capturing risks
29 © Wärtsilä
Investor finds Competitive Advantage for return on capital… LNG hurdle rate is highest & yet preserves cargo owner emission reduction savings.
![Page 29: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/29.jpg)
Banker Are risks understood & I’m repaid !
31 © Wärtsilä
Banker finds debt cover is weakest on MDO fuel, favorably stronger on alternatives, LNG is strongest.
![Page 30: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/30.jpg)
32 © Wärtsilä
Years
EBITBanker Are risks understood & I’m repaid !
LNG has strongest EBIT… Depreciation 10 Year MACRS ½ Year Convention… Dry docking years 5,10,15,20
LNG Fuel
HFO + Scrubber
MDO Fuel
![Page 31: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/31.jpg)
Agenda
33 © Wärtsilä
What ? Fuel Price vs. CostEnergy
Why & How ? No. Am ECA & EmissionsOwner ChoicesSCR, Scrubber, LNG Abatement
Business Case Cargo, Investor, Banker Views185K BBL ATBInvestment Returns
Oil Price Shock ! Business Case: Robust or Fragile?Stress Test
Conclusions Tipping PointBusiness Case Appendix
![Page 32: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/32.jpg)
US #1 Shale Resources
34 © Wärtsilä
1,161 tcf gas & 120 billion barrels oil
Development rapid with technology advances in horizontal drilling, fracking, and computer seismic abilities.
In 5 years US became world’s largest producer of gas
Strong infrastructure & know how
Source:http://www.eia.gov/conference/2013/pdf/presentations/kuuskraa.pdf
![Page 33: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/33.jpg)
Shale Gas
35 © Wärtsilä
![Page 34: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/34.jpg)
Shale Oil
36 © Wärtsilä
![Page 35: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/35.jpg)
28 November 2014
37 © Wärtsilä
Source: http://www.reuters.com/article/us-opec-meeting-idUSKCN0JA0O320141128
Key OPEC Vienna meeting sets stage for market share battle. Brent begins steep fall.
![Page 36: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/36.jpg)
5 January 2015
38 © Wärtsilä
Source: http://www.forbes.com/sites/nathanvardi/2015/01/05/saudi-arabias-750-billion-bet-drives-brent-oil-below-54/
Exert Discipline in the Marketplace amongst OPEC and Non OPEC countries... Key focus on market share… oil prices plunging.
![Page 37: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/37.jpg)
Discipline Target US or Russia ?
39 © Wärtsilä
Russia suffering double whammy:
Oil rich Ukraine and Black Sea burdened by politics under imposed sanctions as oil takes severe price slide…
Ruble plunges down 50% against USD
Source: http://online.wsj.com/articles/ruble-hits-new-low-as-oil-prices-drop-1417441184
Source: http://www.usnews.com/news/articles/2014/11/10/an-oil-price-cold-war-with-saudi-arabia-not-so-fast-experts-say
Source: http://www.businessinsider.com/ruble-plunging-again-2014-12p://online.wsj.com/articles/ruble-hits-new-low-as-oil-prices-drop-1417441184
1 December 2014
December 31, 2014
![Page 38: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/38.jpg)
Source: http://www.businessinsider.com/citi-saudi-arabia-wont-win-this-oil-standoff-2014-11 40 © Wärtsilä
Profits negative… Severe Pain
Profits squeezed…Manageable Pain
45 $/BBL
Key Oil Production Cost
40$/BBL
Total Liquids Production
Brent Breakeven Price
![Page 39: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/39.jpg)
2014 Production
41 © Wärtsilä
US vaults to 1st in production oil and other liquids
OPEC
OPEC
OPEC
OPEC
OPEC
OPEC
OPEC
OPEC
Source: ttps://en.wikipedia.org/wiki/List_of_countries_by_oil_production
http://www.eia.gov/beta/international/rankings/#?prodact=53-1&cy=2014
Saudi Arabia11.6 m BBL/day
![Page 40: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/40.jpg)
Government Breakeven Budgets
42 © Wärtsilä
Severe shortfalls @ prices under 100$/BBL, present oil glut & soft prices challenge sustainability beyond short run
Source: https://alfinnextlevel.files.wordpress.com/2014/04/oil_breakeven_deutsche_bank_oct_14.png40 $/BBL
![Page 41: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/41.jpg)
Brent Crude Oil Prices
43 © Wärtsilä
Source: http://www.nasdaq.com/markets/crude-oil-brent.aspx?timeframe=1y
THEN
NOW
Oil severe price 70% price drop past 18 months as abundant supplies face weak demand from China and stagnant EU.
![Page 42: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/42.jpg)
What’s the impact of the steep fall in oil prices !
Is competitive advantage of LNG robust or fragile ?
44 © Wärtsilä
![Page 43: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/43.jpg)
Recent … 28 January 2016
45 © Wärtsilä
Port Houston Delivered Price
LS380 1% Sulfur 139 $ / ton
LSMGO 0.1% Sulfur 333 $ / ton
Prices : LS380 139 $/mt… LSMGO 0.1% 333 $/mt
Source: http://www.kpibridgeoil.com/
![Page 44: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/44.jpg)
Owner At fair return capturing risks of oil fall 28 Jan 2016
46 © Wärtsilä
LNG emissions savings remains for shipper but returns narrow for investor amidst oil glut steep price dive.
![Page 45: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/45.jpg)
Fuel Stress Test: 100% ECA
THEN 5 August 2014
12.13% @ LNG 500 $/mt 7.70% @ MDO 971 $/mt 10.17% @ HFO 636 $/mt
47 © Wärtsilä
Deviation
ROCE
NOW 28 January 2016
12.77% @ LNG 400 $/mt 13.55% @ MDO 333 $/mt13.79% @ HFO 139 $/mt
LNG robust despite steep crude drop; today choose HFO scrub for best ROCE but not sustainable. Most volatile returns MDO, then HFO, least LNG… holds cargo share with compelling emissions savings. Overall HFO + Scrubber holds 2nd place.
![Page 46: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/46.jpg)
Agenda
48 © Wärtsilä
What ? Fuel Price vs. CostEnergy
Why & How ? No. Am ECA & EmissionsOwner ChoicesSCR, Scrubber, LNG Abatement
Business Case Cargo, Investor, Banker Views185K BBL ATBInvestment Returns
Oil Price Shock ! Business Case: Robust or Fragile?Stress Test
Conclusions Tipping PointBusiness Case Appendix
![Page 47: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/47.jpg)
Nice graph… but it Stress’s me out !
Look, as a vessel owner ( LNG supplier ) all I need to know which fuel strategy to maximize returns.
49 © Wärtsilä
So what’s the fuel price tipping point for 100% ECA operations?
![Page 48: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/48.jpg)
Investor Tipping Point
50 © Wärtsilä
Tipping Pt $/ ton
LNG Basis $/ ton
Run LNG? No: MDO & HFO prices below tip point
Run MDO? No: HFO price below tip point
Run HFO & Scrub? Yes !
Tipping point shows when to switch fuel strategy as prices change, to maximize ship owner returns.
![Page 49: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/49.jpg)
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Keys
Global Energy Policies, market gamesmanship ?
Future Ahead, structural shifts?
As a vessel owner, all I want to knowis the tipping point…
What fuel strategy do I choose to to boost my bottom line?
As an LNG supplier, I want to alsoknow the tipping point….for infrastructure investment positioning.
51 © Wärtsilä
![Page 50: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/50.jpg)
APPENDIXBusiness Case Details
52 Wärtsilä
![Page 51: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/51.jpg)
Financials
53 Wärtsilä
![Page 52: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/52.jpg)
Key Values`
54 Wärtsilä
![Page 53: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/53.jpg)
Key Values
55 Wärtsilä
![Page 54: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/54.jpg)
Fuel Attributes
56 © Wärtsilä
Utilize fuels specific for regional case... As fuels widely vary, the historic dollars per ton or gallon is challenging to use as differing fuels host widely varying energy content, density, value... These values shown are generally representative.
![Page 55: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/55.jpg)
EBIT
57 © Wärtsilä
![Page 56: The Oil Gas Tipping Point & Business Case Economics](https://reader034.vdocuments.us/reader034/viewer/2022051708/589dde441a28ab77148b593d/html5/thumbnails/56.jpg)
EBITDA
58 © Wärtsilä