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Saturday, November 25, 2017

Crude Oil News

Frontline Posts Q3 Loss as Tanker Rates Hit 4-year Low

(File photo: Frontline)

Frontline q3 net loss $‍24.1​ million. The current crude oil tanker rate environment does not presently reflect that strong demand. Shares down 4.8 pct at 0840 GMT vs fall of 0.3 pct in Oslo's benchmark share index.

Crude Tanker Shipping Market to Get Hurt in 2018

Graph:  Drewry Shipping Consultants Limited

Crude tanker freight rates are expected to decline further in 2018 following a sharp decline in 2017, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry. Although tonnage supply growth in the crude tanker market is expected to be low next year after surging in 2017, this will not be enough to push tonnage utilisation rates higher as demand growth is expected to be sluggish. A slowdown in global oil demand growth and a likely decline in China’s stocking activity will keep growth in the crude oil trade moderate next year.

Frontline Calls for Consolidation among Oil Tanker Firms

© Christopher Halloran / Adobe Stock

The global market for crude oil tankers remains too fragmented and needs consolidation among owners, one of the industry's leading companies said on Wednesday. Oslo-listed Frontline, the oil shipping arm of billionaire investor John Fredriksen, also said the market for crude carriers is expected to remain weak until the second half of 2018. "The tanker market is highly fragmented with many owners who have one or two vessels," Frontline Chief Executive Robert Hvide Macleod told analysts in a conference call.

Asian Floating Storage Declines as Crude Market Tightens

File Image (CREDIT: AdobeStock / (c) Jose Gill)

Strong demand is tightening the market but rising US output could sap efforts to rebalance market. The amount of oil stored on tankers around Singapore has dropped sharply in the last months, the latest indication that OPEC-led supply cuts are successfully tightening crude markets even as U.S. exports have soared. Shipping data in Thomson Reuters Eikon shows around 15 super-tankers are currently filled with oil in waters off Singapore and western Malaysia, storing around 30 million barrels of crude.

U.S. Crude Oil Production October Exceeded Imports Reports EIA

Diesel chart courtesy of EIA

The U.S. Energy Information Administration (EIA) releases latest short-term energy outlook. Monthly estimated domestic crude oil production exceeded crude oil imports in October 2013 for the first time since February 1995. The weekly U.S. average regular gasoline retail price has fallen by more than 40 cents per gallon since the beginning of September. EIA's forecast for the regular gasoline retail price averages $3.24 per gallon in the fourth quarter of 2013, $0.10 per gallon less than forecast in last month's STEO.

Bill Aims to Lift Ban on Texas Energy Exports

Congressman Michael McCaul introduced H.R. 4349, the Crude Oil Export Act, which lifts the 1970s era prohibition on the export of American crude oil and would remove the major remaining barrier that keeps the U.S. from being competitive with other oil exporting nations. McCaul said, "Most of America's crude oil production is taking place underneath the feet of Texans in the Eagle Ford Shale and the Permian Basin. According to McCaul, the Crude Oil Export Act will repeal the 1970s era ban on crude oil exports; maintain a ban on crude oil exports to any country that is subject to U.S. trade restrictions, sanctions or that the President or Congress has designated as subject to exclusion for national security reasons…

Small Spill After Tankers Collide Off Louisiana

The U.S. Coast Guard said that shipping operations at the Southwest Pass, off Louisiana, were not affected by a minor crude oil spill after two crude oil tankers collided on Wednesday evening. "The Coast Guard has established a safety zone around the incident area. Normal shipping operations will continue outside the safety zone," said the Coast Guard Marine Safety Office in Morgan City, La. The spill which took place approximately 40 miles south of Grand Isle, La., was not near the Louisiana Offshore Oil Port (LOOP) as earlier reported, said Mark Bugg, scheduling manager for the LOOP, the only deep-water U.S. oil port and a major conduit for the country's crude oil imports.

JNPT Liquid Cargo Terminal Handles Highest Crude Oil

Photo: Jawaharlal Nehru Port Trust

Jawaharlal Nehru Port Trust (JNPT), India’s number one container port, created a major record on November 16, 2016, by loading 80,640 MT of ONGC crude oil on a large vessel ‘MT Desh Bhakta’, which was berthed at LB-01 of BPCL-run Liquid Cargo Terminal. This is the highest quantity of crude oil loaded on a vessel at JNPT which has surpassed the previous highest of 80,489 MT loaded on Tanker vessel ‘MT Ratna Urvi’ in June 2012. ONGC’s crude oil tanker MT Desh Bhakta, which measures LoA of 244.2 meters…

U.S. Oil Imports Up

U.S. crude oil imports January to June 2001 were above the 2000 level in each month. However, crude oil imports during 3rd quarter were below the 2000-year level for each month. Crude oil imports in August 2001 were about 1.0 mbd below the August 2000 level and the September 2001 level was 0.3 mbd below that of September 2000. Crude oil imports Jan-Sept. 2001 were record high, 0.10 mbd above the Jan-Sep. 2000 level. The highest U.S crude oil imports ever - 9.484 mbd - were recorded in August 2000. U.S. product imports declined dramatically from 3.33 mbd in January 2001 to 2.12 mbd in August, increasing slightly to 2.24 mbd in September 2001. Products imports Jan-Sept. 2001 were also record high, 0.21 mbd above the Jan-Sep. 2000 level. (Source: INTERTANKO News)

Not All Contangos are Created Equal

After the collapse of the global financial system in 2008, crude oil forward curves moved into steep contango. Fortunes were made in storage asset plays in 2009-2010, which is likely the reason that so much attention is being devoted to the topic today; however, the contango is inherently different today than it was after The Great Recession. As the U.S. energy revolution continues to develop, global crude oil supply and demand dynamics have begun to evolve. Improvements to hydraulic fracturing processes have helped the U.S. become the world’s largest crude oil producer.

Cosco Energy Transportation to Buy New Tankers

Photo: Cosco Energy Transportation

Cosco Energy Transportation has entered into the Agreements with Dalian Shipbuilding Industry Company Limited for the construction of the Very Large Crude Carriers (VLCCs) and the Suezmaxs. The total consideration for the construction of the VLCCs and the Suezmaxs is RMB 3.67 billion (USD 88.5 million). The consideration is determined by reference to the market price of crude oil tankers ranging in sizes from 280,000 to 320,000 dead weight tons and 150,000 to 160,000 dead weight tons respectively during the past 6 months.

Brazil: Exports to Exceed Imports in 2014

Brazil will export more crude oil in 2014 than it will import, Magda Chambriard, director general of Brazil's oil regulator, the ANP, said on Tuesday. If her prediction comes true, the oil-trade surplus will be Brazil's first since 2012, when the country exported $20.3 billion of crude oil and imported $13.4 billion, according to Brazil's commerce and trade ministry. Brazil had an oil trade deficit in 2013, importing $16.3 billion of crude oil and exporting $13 billion, the ministry said on its website. As most of Brazil's oil output is heavy crude oil and its refineries operate best with light crude, Brazil exports domestic oil to buy lighter, imported grades.

Daewoo Gets $740m in Contracts for Two Vessels

Reuters reported that Daewoo Shipbuilding and Marine Engineering Co. had secured a combined $740m order to build a drill ship and a crude oil carrier. The two vessel orders underlined booming oil exploration around the world, Daewoo said in a statement, as crude oil futures have set a series of recent records. The shipbuilder will deliver the drill ship for $623.8m to an unidentified shipping firm from the Oceania Continent, while the crude oil carrier will go to a Europe-based shipper by the end of 2010.

Nansha Factory Cuts First Steel for Tanker Newbuilds

Construction begins on two 113,000 DWT product/crude oil tankers in Nansha Factory   A steel cutting ceremony was held at the Nansha Factory December 1 for the third and fourth of eight vessels of 113,000 DWT product/crude oil tankers for NAVIG8 Group registered in U.K.   Personnel from the builder’s business and operations management departments attended the opening ceremony, as well as signed the progress documents representing GSI with shipowners’ representative.   GSI signed eight shipbuilding contracts with NAVIG8 Group for building 113,000dwt product/crude oil tankers in August, 2013., and construction on the first and second vessels began in June, 2014.   chinagsi.com  

Nippon Oil Starts Commercial Production

Nippon Oil Corp. has started commercial production of crude oil at a reservoir in the North Sea. Maximum daily oil production at the Blane field, located some 260 kilometers east of Scotland's Aberdeen, is estimated at 17,000 barrels. MOC Exploration (U.K.) Ltd., a fifty-fifty joint venture between Nippon Oil and the Japanese government, holds a 14.0 pct stake in the concession, which accounts for daily production of 2,380 barrels of crude oil. Nippon Oil plans to transport the crude oil from the field to the Scottish mainland via a pipeline, and then sell it on to European users, it said. The Blane field produces light crude oil, suitable for processing into gasoline and gas oil.

Angola Crude Exports Set to Rise in January

Angola is set to export 1.77 million barrels per day of crude oil in January, up from 1.60 mln bpd in December, a provisional shipping list showed on Tuesday. The oil from the OPEC member, and Africa's second largest exporter, will be shipped on 57 vessels, the shipping list showed. Exports of Cabinda, Girassol, Palanca, Saturno, Hungo, and Plutonio were set to be higher in January than December, while Dalia exports were lower. Stronger supply of West African crude oil will put further pressure on crude oil futures prices at a time of ample global supply and fragile demand growth. Traders are awaiting Nigerian crude oil exports lists for January, expected to start emerging this week.

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.S. Maritime Trade -- are gaining steam. A new report from the Government Accounting Office (GAO) will surely add fuel to the "export oil" fire now, as GAO reports that U.S. consumers could save on gasoline if the ban on crude oil exports were lifted, even if such a move creates uncertain environmental risks. Allowing more domestic fuel to reach the global energy market would probably boost the national economy and ease the U.S. trade deficit, but other implications are less clear, the GAO said.

Shipping Not Affected By Louisiana Tanker Collision

Shipping operations at the Southwest Pass, off Louisiana, were not affected by a minor crude oil spill after two crude oil tankers collided on March 15, Coast Guard officials said. The spill took place approximately 40 miles south of Grand Isle, La., when a lightering vessel owned by American Eagle Tankers Inc., the Eagle Carina, collided with a Chevron oil tanker, the J. Dennis Bonney, while preparing to transfer crude oil from the tanker to the lightering vessel, company officials said. It was estimated that approximately 7,560 to 8,400 gallons of crude oil were spilled. The Coast Guard classifies an offshore spill of this volume as minor. There were no injuries resulting from the collision and no reports of impact to marine wildlife resulting from the spill, officials said.

Indonesia, CNOOC Talks End in Deadlock

Early renegotiation of gas selling price with China National Offshore Oil Company (CNOOC) has ended in deadlock as the ceiling price proposed by CNOOC was seen as too low, according to Asian Pulse. Indonesia has signed a long term contract to supply China's Fujian province with 2.6 million tons of liquefied natural gas (LNG) annually from Tangguh, Papua. Under the agreement in 1992 the LNG price was tide with crude oil price or around $2.4 per MMBTU based on a ceiling price of $25 per barrel of crude oil. The ceiling price is no longer acceptable to Indonesia with the soaring crude oil price at present. Currently the LNG price is around $8 per MMBTU based on a crude oil price of $65 per barrel.

Avondale To Build Fourth DH Tanker

Litton Industries Inc. said Polar Tankers Inc. has exercised an option for a fourth double-hull crude oil carrier, valued at $197 million, to ship Alaskan crude oil. Under a contract awarded in 1997, Litton's Avondale Industries Inc. subsidiary has three 125,000 DWT crude oil carriers under construction. Delivery of the first ship is scheduled for January 2001. Long Beach, Calif.-based Polar Tankers, a subsidiary of Phillips Petroleum Co., Polar Tankers has an option with Litton Avondale for a fifth ship which could be exercised in the first quarter of calendar year 2001. The Millennium Class "next generation" tankers being built at Litton Avondale are the first new crude-oil carriers being built for the Alaskan trade in compliance with the Federal Oil Pollution Act of 1990.

Delfin Taps China for US FLNG, but Final Investment Decision 'Challenging'

(Image: Delfin LNG)

Delfin Midstream, developing the first floating facility to export U.S. natural gas, has sealed a preliminary 15-year sales deal with city gas distributor China Gas Holdings, Delfin founder and Chief Executive Officer Frederick Jones said. But industry veteran Jones told Reuters in an interview that Delfin is also tapping unnamed Chinese banks to fund its ambitious $8 billion as the current global supply overhang in liquefied natural gas (LNG), with bumper exports also expected from Australia and Qatar, makes Delfin’s target of a final investment decision (FID) in 2018 challenging.

Daewoo Wins $483M In Ship Orders

Daewoo Heavy Industries won $483 million in ship orders last week from companies in the U.S. and Greece. It will build four ultra large crude oil carriers for Majestic Shipping Co. of the U.S., and three very large crude oil carriers for Aeolos Management S.A. and Atlantic Bulk Carrier Ltd of Greece, a company statement said. Majestic ordered two 450,000-ton ultra crude oil carriers and took options on two more. Atlantic Bulk ordered two 75,000-ton bulk carriers and Aeolos Management bought one 300,000-ton very large crude oil carrier, Kim said. The ships are to be delivered by the end of 2002.

Great Lakes Crude Oil Shipping Feasibility Study

Calumet Specialty Products Partners, L.P. Announces Feasibility Study for Crude Oil Shipping. Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet") announced it will explore the feasibility of building and operating a crude oil loading dock on Lake Superior, near its Superior, WI refinery, designed to load ships with heavy Canadian and light Bakken crude oil for shipment through connecting waterways. "Calumet is currently assessing the viability of the project and gauging interest in the marketplace. We would expect to have this project fully operational during the shipping season of 2015 and are currently in talks with potential customers and partners," said Todd Borgmann, VP of Business Development at Calumet.

Maritime Reporter Magazine Cover Nov 2017 - The Workboat Edition

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