CARIBBEAN PETROLEUM UPDATE June 2012

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Caribbean Energy Information System (CEIS) June 2012 Statistics from a number of international agencies including the World Health Organization (WHO) has shown that there has been an increase 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 implications of diesel fumes inhalation for Caribbean nationals. History of Diesel Engines Image source: www.whatsonxiamen.com

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 popular 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 engines 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 monoxide, all of which can have significant negative health effects on humans and animals not to mention the impact on the environment.

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The invention of the diesel engine or internal combustion engine by Rudolf Diesel in 1893 could be considered one of the most important developments of all times due to the role it has played in development of the industrialized world. Diesel engines since then have been used to run ships, submarines, generators, trucks, etc. Since 1936 when Benz built the first diesel car these engines have been used in continued on page 2/ CONTACT US

Caribbean Energy Information System Scientific Research Council Hope Gardens, Kingston 6, Jamaica 1-876-927-1779 (Telephone) 1-876-977-1840 (Fax) ceis@src-jamaica.org www.ceis-caribenergy.org

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

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 onroad 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 inhalation 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; difficulty 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 ailments. 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 particulate matter from diesel exhaust is able to enter deep into the lungs and damage DNA, which can lead to cancer. As such, diesel engine exhaust fumes was classified as probably a human carcinogen group 2A. However, in June 2012 the IARC an arm of the WHO announced 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 category as a number of other noxious substances including asbestos, arsenic, mustard gas, alcohol and tobacco. 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 worldwide. 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 affect 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 continued on page 3/

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

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

indirect effects such as increase in global warming caused by the number of greenhouse gases emitted. Global warming can lead to a number of other ill effects if left unchecked. There are also instances where the decreased visibility 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: Table 1 CO vppm

HC

DPM

vppm g/m

3

NOx vppm

SO2 vppm

5-1,500 20-400 0.1-0.25 50-2,500 10-150 Source: http://www.nett.ca

Carbon monoxide (CO), hydrocarbons (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 generated from nitrogen and oxygen under the high pressure and temperature 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 environmental concerns.

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Sulphur dioxide (SO2) is generated from the sulphur present in diesel fuel. The concentration of SO2 in the exhaust gas depends on the sulphur 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 complex 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 conditions. "Wet" particulates can contain up to 60% of the hydrocarbon 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.

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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 environmentally 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 involved in trucking, heavy construction and mining are to be more concerned about the long-term health effects resulting from longterm exposure to diesel exhaust fumes - many are not aware of these effects. According to the IARC/WHO, the greatest risk from long-term exposure to diesel exhaust appears to be lung cancer. Other long-term health effects or dangers include asthma and other lung diseases, heart disease and immune system disorders. This is further compounded by the number of chemicals emitted resulting in global warming. The environment is coming under evercloser scrutiny as the rise in rates of greenhouse gases, cancer and other diseases becomes increasingly 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.

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

CARIB P ETROLEUM NEWS & H APPENINGS CUBA

GUYANA

Venezuela Plans $40 Million Investment In Cuban Oil Exploration >> 30/06/2012

Guyana signs agreement with major US oil exploration and production company >> 27/06/2012

Venezuelan oil company to drill off Cuba >> 28/06/2012

TRINIDAD & TOBAGO Rowan jackup spuds Shadow prospect offshore Trinidad >> 12/06/2012

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

INTERNATIONAL

Gov't removes GCT from residential light bills >> 06/06/2012

Venezuela asks Gulf oil nations to cut back output >> 13/06/2012

GCT Removed from Electricity Used by Residential Customers >> 06/06/2012

Statoil buys FPSO unit in Brazil from Maersk >> 12/06/2011

BELIZE

Bolivia increases gas exports to Brazil and Argentina >>12/06/2012 Chavez plans to double oil-output capacity by 2019 >> 12/06/2012

Maranco begins exploration permitting process >> 19/06/2012

Oil falls on fresh signs of global slowdown >> 03/06/2012 Oil price climbs ahead of crucial Greece election >> 17/06/2012

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

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 ď‚Ą

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

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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.ď‚Ą

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

COUNTRIES ANTIGUA/ BARBUDA BAHAMAS [91 OCT] BARBADOS BELIZE [87 OCT] B.V.I [87 OCT] DOMINICA GRENADA (95 OCT) GUYANA JAMAICA 87 Octane[E10] MONTSERRAT ST. KITTS/ NEVIS ST. LUCIA ST. VINCENT/ GRENADINES SURINAME [95 OCT] TRINIDAD/ TOBAGO [92 OCT] TURKS/ CAICOS

1.23 1.33 1.55 1.41 1.26 1.12 1.23 1.11 1.23 1.19 1.20 1.21 1.19 1.40 0.42 1.58

1.23 1.35 1.59 1.45 1.27 1.14 1.28 1.08 1.30 1.21 1.19 1.22 1.16 1.43 0.42 1.58

1.23 1.44 1.66 1.51 1.29 1.19 1.36 1.09 1.32 1.29 1.32 1.22 1.13 1.49 0.42 1.61

APR MAY JUN 1.23 1.46 1.72 1.54 1.29 1.25 1.42 1.09 1.37 1.39 1.29 1.24 1.17 1.52 0.42 1.70

1.23 1.47 1.77 1.55 1.29 1.30 1.42 1.16 1.32 1.41 1.28 1.25 1.21 1.54 0.42 1.78

1.23 1.46 1.78 1.49 1.29 1.33 1.36 1.17 1.27 1.40 1.24 1.27 1.17 1.46 0.42 1.68

6 Mths AVG 1.23 1.42 1.68 1.49 1.28 1.22 1.34 1.12 1.30 1.31 1.25 1.23 1.17 1.47 0.42 1.66

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% Ethanol.

Comparative Retail Pump Prices Regular Unleaded Gasoline

CHART:

JUNE Avg vs 6 Mths Avg (Jan - June 2012)

US$/Litre

2.00 1.80

JUN

1.60

AVG

1.40

1.20 1.00

0.80 0.60 0.40 0.20 0.00

16 Caribbean Countries

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

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Call: 1-876-927-1779 | Caribbean Petroleum Update : June 2012 International Crude Oil Prices Wkly & Mthly Averages for 6 mths (Jan  Jun 2012) 80.00

81.00 82.00

JUN

84.03

81.76

87.1 90.9

US$/BBL

MAY

M o n t h s

102.6

97.8

WK 4

WK 3

103.2

WK 2

106.4

WK 1

106.3

107.5

101.7

FEB

88.9

103.5

106.2

MAR

97.0

103.8

103.2

APR

93.1

106.0

Mth Avg

107.2

98.6

101.3 99.4 99.9

JAN

0.0

20.0

40.0

100.4 102.4

60.0

100.5 80.0

100.0

120.0

US$/BBL

Average Monthly World Crude Oil Prices (2009 - 2011) 109.61

108 98

US$/BBL

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 welcomed 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.

88.14

88 78

76.19

68

58 48

2009

2010

2011

38

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Jan

Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

Period

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.

Yr Avg

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