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Wednesday, October 17, 2018

Crude Oil News

How Refiners Plan to Grapple With Fuel Oil Output After 2020

© christian42 / Adobe Stock

High-sulphur fuel oil (HSFO), essentially the leftovers of an oil refiner's output, will still flow from refineries around the world even after new rules start up in 2020 curtailing its use in the global shipping fleet, a Reuters survey showed.Sixty percent of the 33 refineries contacted by Reuters in a global survey will still produce HSFO in 2020 although the supply will tighten as 70 percent of these refiners plan to reduce their output.Starting that year, ships will have to use marine fuel…

Pemex Reaches Deal to See if Talos Find Reaches Its Block

(Photo: Premier Oil)

Mexican state oil firm Pemex has reached a preliminary agreement with a consortium led by Talos Energy to evaluate whether the group's find in the Gulf of Mexico extends into a neighboring Pemex block, the companies said in a statement on Thursday.The deal, which covers territory in the shallow waters of the Gulf of Mexico, is the first of its kind for Pemex and will be in force for two years.The Talos consortium, which includes Britain's Premier Oil and Mexico's Sierra Oil & Gas, won development rights for two blocks during the first oil auction launched by President Enrique Pena Nieto.

Hurricane Michael Races Northeast, Leaving Devastation in Florida

The latest storm track for Michael. (CREDIT NHC)

Hurricane Michael, the third most powerful storm ever to strike the U.S. mainland, headed northeast on Thursday, weakened but still set to soak Georgia and the Carolinas after devastating the Florida Panhandle.By 6 AM on Thursday, heavy rain and wind had reached as far north as Charlotte, North Carolina and the Western North Carolina mountains. The center of the storm was located over Augusta, Georgia, moving north rapidly at more than 20 MPH in a north / northeast heading. Charlotte…

Answering the Call for Environmental Answers

The RDC project team poses on USCGC Hollyhock after completion of the offshore mitigation system prototype test.  From left to right, LT Charles Clark, Alexander Balsley, and Coast Guard Academy Cadet 2/c Valerie Hines.)

The Coast Guard has developed two separate mitigation system prototypes specifically designed for inland and offshore environments and tested them in the Kalamazoo River and Lake Huron.Whenever there is a need for oil, there will always be a risk of oil spills. This is no less true for bituminous sands, commonly known as oil sands or tar sands. Oil sands are mostly found in Alberta, Canada, and comprised of bitumen, sand, clay and water. They are typically viscous, with a texture similar to peanut butter.

Trafigura Names First of 35 New Tankers

Photo: Trafigura Group

Singapore's commodity trading company Trafigura Group has named the first of its 35 crude oil and product tankers being built in South Korea and China.The naming ceremony took place at Hyundai Samho Heavy Industries’ shipyard in Jeolanam-do, in the southwest of South Korea yesterday (September 20) in the presence of Singapore’s Senior Minister of State for Transport and Health, Dr Lam Pin Min. Dr Lam’s wife, Dr Jeanette Chen, became godmother to the first vessel to be named, the Mt Marlin Singapore…

Oil Could Rise to $100 by 2019

© alexyz3d / Adobe Stock

Oil prices could rise towards $100 per barrel towards the end of the year or by early 2019 as sanctions against Iran bite, commodity merchants Trafigura and Mercuria said on Monday at the Asia Pacific Petroleum Conference (APPEC) in Singapore.Almost 2 million barrels per day (bpd) of crude could be taken out of the market as a result of the U.S. sanctions against Iran by the end of the fourth quarter this year, said Daniel Jaeggi, president of commodity merchant Mercuria Energy Trading…

KNOT Concludes TC Contract for Two Shuttle Tankers

Image: Knutsen OAS shipping

Norway-headquartered Knutsen NYK Offshore Tankers (KNOT) has concluded a time-charter contract for two shuttle tankers with Equinor ASA for a maximum 20-year period starting in the second quarter of 2020.KNOT is a NYK Group company, in which NYK has a 50 percent share.The contract aims to use two 152,000 DWT Suezmax tankers equipped with dynamic-positioning systems built by Hyundai Heavy Industries Co. Ltd. to shuttle crude oil produced in waters off Brazil.Upon commencement of this contract…

Making the Case for LPG as a Marine Fuel

 Research engine at Research Center Copenhagen equipped for LPG use. Images: ©MAN ES

The sulfur emission control areas (SECAs) in place in North-America and Northern Europe, in combination with the upcoming global 0.5% limit on sulfur in 2020 (or 2025) and similar EU limits in 2020, call for alternative fuels as a means for compliance. Several alternative fuels are available and, at the same time, new fuel oil products with very low sulfur content have been introduced.In this respect, the ability of the new MAN ME-LGIP engine to run on LPG, which is a sulfur-free fuel…

Trafigura Leases 35 Crude Oil and Product Tankers

(Photo: Trafigura)

Commodity trader Trafigura had leased 35 newly built crude oil and oil product tankers from an undisclosed Asian financial partner with the vessels expected to be delivered late this week and all through 2019, the company said."Until 2020, the vessels will run on regular fuel, and from then onwards, whenever allowed (some ports do not allow usage of open loop scrubber), they will burn high sulphur fuel oil, which is possible due to the scrubber onboard each vessel," a company spokesman told Reuters on Friday.The tankers…

Hurricane Michael Bears Down on Florida

This chart CREDIT National Hurricane Center

Hurricane Michael is expected to strengthen today in the Gulf of Mexico, with the Florida panhandle directly in its dangerous path.Thousands of local residents in Wakulla, Gulf and Bay counties have been ordered to leave. Forecasters now say that Michael could be a Category 3 storm when it makes landfall on Wednesday. That prediction, if true, would make the storm the strongest to hit this area in at least a decade.As of 3 AM CDT on Tuesday, Michael was a Category 1 storm, with sustained winds of up to 90 miles per hour.

Chevron Eyes Houston Ship Channel for 2nd US Gulf Refinery

(File photo: Port of Houston)

Chevron Corp wants to build or buy a refinery along the U.S. Gulf Coast to process crude oil from its rapidly growing Permian Basin operations, a senior executive said on Tuesday.The company would like to have refining operations on the Houston Ship Channel, in the western part of the U.S. Gulf, to complement an existing eastern Gulf refinery in Mississippi that makes lubricants and other materials, Pierre Breber, Chevron's head of downstream and chemicals, said."Something on the ship channel side could make a lot of sense for our company…

Chinese Marine Builder to Work with Singapore Trader to Buy Fuel

(Photo: CCCC Marine Construction & Development Co)

The marine construction unit of the state-owned China Communications Construction Company (CCCC) on Tuesday signed an agreement to work with Singapore-based commodities trader Zenrock Group to purchase fuel.Marine Construction & Development Co (MCD), which is involved in major infrastructure projects around the world as part of China's Belt and Road initiative, wants to streamline its process for buying fuel, said Chief Financial Officer Jin Xinxiang."In the past, (our) oil procurement activities have been very segregated into individual projects.

US Crude Oil Shipments to China Halt Amid Trade War

© Christopher Halloran / Adobe Stock

U.S. crude oil shipments to China have "totally stopped", the President of China Merchants Energy Shipping Co (CMES) said on Wednesday, as the trade war between the world's two biggest economies takes its toll on what was a fast growing businesses.Washington and Beijing have slapped steep import tariffs on hundreds of goods in the past months. And although U.S. crude oil exports to China, which only started in 2016, have not yet been included, Chinese oil importers have shied away from new orders recently."We are one of the major carriers for crude oil from the U.S. to China.

Build It and They Will Buy: The New World of LNG Canada

Rendering of the LNG export facility (Image: LNG Canada)

The first major liquefied natural gas (LNG) project to be approved globally in five years will be built in Canada, but its underlying philosophy appears to be more closely allied to the Australian concept of "she'll be right, mate."The LNG Canada project was given the green light on Tuesday by Royal Dutch Shell, which is leading the $31 billion venture along with partners Petronas, Mitsubishi, PetroChina and Korea Gas.What makes the first export plant on Canada's west coast different…

DHT Holdings Gets $50mln for Scrubber Retrofit Project

File Photo: DHT Holdings

The crude oil tanker company operating a fleet of crude oil tankers in the VLCC, Suezmax and Aframax segments, DHT Holdings announced that it has secured commitment to a $50 million financing for its earlier publicized scrubber retrofit project, subject to final documentation.The financing is structured through an increase of the existing $300 million secured credit facility entered into in the second quarter of 2017. The increased facility will bear the same interest rate equal…

International Seaways to Install Scrubbers in VLCC Fleet

File Photo: International Seaways

International Seaways announced that it has signed contracts with Clean Marine AS of Norway and a qualified system installer for the purchase and installation of exhaust gas cleaning systems (scrubbers) on seven of its modern VLCCs, with an option for a further three systems covering the remaining three modern VLCCs in its fleet.The tanker company providing energy transportation services for crude oil, petroleum products and liquefied natural gas (LNG) said in a press release that the seven scrubbers are all to be installed prior to January 1…

Equinor Charters Shuttle Tankers for Roncador Field

Photo of Bodil Knutsen, a current ship within the Knutsen fleet. (Photo: Knutsen NYK Offshore Tankers AS)

Norway's Equinor has entered into time charter contracts with the shipowner Knutsen NYK Offshore Tankers AS (Knutsen) for two newbuild shuttle tankers to transport crude oil from the Roncador oil field in the Campos Basin offshore Brazil.The new vessels will be built at Hyundai Heavy Industries in South Korea and are scheduled to enter operation in 2020.The vessels, which meet all requirements for offshore loading in Brazil, are designed for operations in Brazilian waters and are optimized for intended trading pattern, Equinor said.

Subchapter M Casts Off

Image Credit: Vane Brothers

Initial reports show that the towing industry is adjusting well to the new normal on inland rivers. In fact, it is business as usual for most.July 20, 2018 was a critical date for tow boat operators. That was the deadline for all U.S.-flag towing vessels – over 26 feet, or less if used to assist with transport of oil or hazardous materials – to be in compliance with Subchapter M, the U.S. Coast Guard’s towing vessel safety regulations. It’s been a long time coming. As a regulatory program…

US Oil Exports to Asia May Slide Further

© Anatoly Menzhiliy / Adobe Stock

Rising shipping rates have increased the costs of shipping oil from the United States to Asia and may further the restrict the flow of U.S. oil to the region later this year, multiple trade and shipping sources said on Thursday.Freight rates for tankers that carry crude oil have soared globally, buoyed by peak seasonal demand, weather disruptions and higher bunker fuel costs, the sources said.The cost of chartering a Very Large Crude Carrier (VLCC) capable of carrying 2 million barrels of crude from the U.S.

Alfa Laval to Suppy Pumping Systems for China-built FPSO

Pic: Alfa Laval

Swedish company Alfa Laval  has won an order to supply Framo pumping systems to an FPSO (Floating Production, Storage and Offloading) vessel to be built in China.The provider of specialized products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling said in a press release that the order has a value of approximately SEK 70 million ($7.72 mln).It was booked late September in the Pumping Systems unit of the Marine Division, with deliveries scheduled for 2019.The order comprises marine pumping systems for crude oil offloading…

US Actively Considering Waivers on Iran Oil Sanctions

© donvictori0 / Adobe Stock

The United States is "in the midst of an internal process" of considering sanctions waivers for countries that are reducing their imports of Iranian oil, a U.S. government official said on Friday.The Trump administration, which withdrew from a deal over Tehran's nuclear program in May, is reimposing sanctions on Iran's crude oil consumers on Nov. 4. The government official, who spoke on the condition of anonymity, called the exceptions SRE waivers, also known as significant reduction exemptions.(Reporting by Timothy Gardner Editing by Marguerita Choy)

Wintershall CEO Meets Norwegian Prime Minister on Growth Plans

Photo: © Wintershall/Bernd Schoelzchen

Mario Mehren, CEO of Wintershall, Germany's largest crude oil and natural gas producer, has presented Wintershall’s growth plans in Norway during a visit by Norway's Prime Minister, Erna Solberg, to Berlin.Mehren announced a further increase in production during a discussion with the Prime Minister and representatives of German energy politics and the energy industry, which was held at the Norwegian Embassy."It has become clear during the last few weeks that Wintershall and DEA will become the company Wintershall DEA within the next year.

INSIGHTS: John Rynd / President , CEO and Director, Tidewater Inc.

John Rynd / President , CEO and Director, Tidewater Inc.

Mr. John Rynd graduated from Texas A&M University with a Bachelor of Arts degree in Economics. He previously served as Chief Executive Officer and President, and as a director of Hercules Offshore from 2008 through 2016. Prior to his time with Hercules, Mr. Rynd spent 11 years with Noble Drilling Services, Inc., where he served in a variety of management roles. Earlier in his career, he served in various roles of increasing levels of responsibility with Chiles Offshore and Rowan Companies. Beyond this, Mr.

Maritime Reporter Magazine Cover Oct 2018 - Marine Design Annual

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