Lower Oil Prices News

11 Nov 2019

Bourbon Commits 100+ Vessels to Fleet Xpress

(Photo: Bourbon)

Marine services firm Bourbon has signed a contract committing more than 100 offshore support vessels (OSVs) to Inmarsat’s Fleet Xpress, the maritime broadband service that combines the speed of Ka-band with continuous back up from Inmarsat’s FleetBroadband operating on L-band.The deal represents a breakthrough offshore contract for Fleet Xpress, which is already installed on some 7,000 vessels - mainly seagoing merchant ships, the company said.“This contract is substantial in…

12 Sep 2019

OFS Sector Expected to Take a Hit

Graph: Rystad Energy

Lower oil prices will push the global oilfield services (OFS) sector into a recession in 2020 after three successive years of growth, according to Rystad Energy.In a new sector outlook update, Audun Martinsen, head of oilfield services research at Rystad Energy, forecasts a 4% decline in global oilfield service revenue if oil prices stay flat next year.“Lower oil prices call for negative growth in the service market in 2020,” says Martinsen. “For suppliers, this means that a three…

15 Aug 2019

Saudi Aramco, World’s Most Profitable Co, Again

Image: Saudi Aramco

Saudi Aramco announced that its net income was $46.9 billion for the first half 2019, compared to $53.0 billion for the same period last year. That easily outstripped corporate titans such as Apple Inc, Amazon.com Inc and other big oil producers, many of which suffered larger declines in profit as output and crude prices fell. Saudi Aramco President & CEO Amin H. Nasser, said: “Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance…

05 Aug 2019

Investments in Exploration Drilling to Double

Image: Rystad Energy

Rystad Energy sees investments both in offshore and onshore exploration drilling doubling in the next five years, compared to the last five years. Conventional onshore demand will be driven by Asia, Africa and South America.Europe on the other hand, will be a hot spot for offshore exploration, led by investments on the Norwegian Continental Shelf, the energy research and business intelligence company said.In the past few years conventional exploration drilling has been on a rocky road…

01 Aug 2019

MOL Group On Track to Meet 2019 Guidance

Pic: MOL Group

Hungarian international oil and gas company MOL Group delivered an EBITDA of USD 1.15bn in H1 2019, exactly half of the full-year 2019 guidance.Upstream EBITDA was 10% lower in H1 2019 at USD 553mn, as higher volumes were more than offset by lower oil and gas prices. The segment remained the largest free cash flow generator of the Group. Average daily hydrocarbon production was 111.8 barrels of oil equivalent per day (boepd) higher by 2% year-on-year.Downstream Clean net income EBITDA amounted to USD 403mln in H1 2019, 18% lower year-on-year.

10 Feb 2019

Size Matters in Shale Industry

Image: Rystad Energy

Having taken a closer look at the detailed economics of the most recent 1,000 wells drilled in the most popular shale hotspot – the Wolfcamp A zone of the Permian Delaware basin – Rystad Energy can see a clear pattern emerging that favors large players.As US crude production is set to grow significantly over the next decade, analysts still debate whether shale drilling is actually a profitable endeavor. Some skeptics claim operators overstate their well production profiles, while…

23 Oct 2018

LNG Shipping Rates Double Since End-August

© Björn Wylezich / Adobe Stock

Headline rates for shipping liquefied natural gas (LNG) in Pacific and Atlantic basins stand at around $140,000 to $150,000 a day for a 160,000 cubic meter LNG tri-fuel diesel electric (TFDE) vessel, brokers say.That is a 6-year high and compares to Atlantic basin rates of $75,000 at the end of August and around $95,000 at the end of September.Rates have jumped due to supply from new plants, longer distances traveled and anticipation of higher prices prompting shippers to lock in longer-duration contracts."Charterers continue to lock in multi-month contracts ahead of the winter and we continue

19 Jul 2018

Keppel Q2 Profit up 44 Percent

Singapore's Keppel Corp posted a 44 percent rise in its second-quarter profit, citing stronger earnings from its property and infrastructure divisions that offset losses in its other segments, including offshore and marine.Keppel, whose businesses range from rig-building to property development, posted a net profit of S$246 million ($179 million)for the quarter ended June, versus S$171 million a year-ago.Total revenue at the company, in which Singapore state investor Temasek is the biggest shareholder, was S$1.52 billion, slightly lower than the S$1.55 billion posted a year ago.Profit at the company's property division rose 132 percent to S$225 million, helped by en bloc sales in some development projects and a fair value gain.Its offshore and marine (O&M) division, which builds drilling r

25 Apr 2018

Sembcorp Marine Outlook Subdued on Q1 Profit Slump

(File photo: Sembcorp Marine)

Singaporean rig builder Sembcorp Marine Ltd said on Wednesday first-quarter profit fell 86 percent, and signaled a subdued outlook for orders and business volumes.Sembcorp Marine said profit came in at S$5.3 million ($4 million) for the three-month period ended March, compared with S$37 million in the same period a year ago.The year-ago profit was boosted by an one-off gain from the disposal of Sembcorp Marine's stake in Cosco Shipyard Co.Overall business volume has remained significantly below peak levels…

30 Aug 2017

Borr Drilling Aims to Expand Fleet, Keep Costs Low

Borr Drilling, the Norwegian drilling start-up, which listed on the Oslo exchange on Wednesday, said it aimed to expand its fleet, taking advantage of its low cost base. The start-up, launched last year and backed by the world's biggest oil service firm Schlumberger, said it aimed to have the lowest cash break-even costs in the industry and would take advantage of current low prices for rigs. "We have no debt," Borr's Chief Executive Simon Johnson told Reuters after its shares started trading on Oslo's main market. They were previously listed on the over-the-counter market. "That might change in the future, depending on the financing needs, but we can control what we pay for assets," Johnson said.

04 Aug 2017

Overtonnage Weighs on VLCC Rates

© Jose Gil / Adobe Stock

Freight rates for very large crude carriers (VLCCs) on Asian routes from the Middle East could fall to a new low for the year next week as too many ships chase the number of available cargoes, ship brokers said on Friday. That came as average rates from the Middle East to Asia have fallen close to last year's low. Average rates dropped to around 32.50 on the Worldscale measure on Sept. 23, 2016, equivalent to about 42.75 this year after Worldscale rates were recalculated for 2017.

26 Jun 2017

Rolls-Royce & the Future Tech 'Reality'

Rolls-Royce and Finland’s Tampere University of Technology are working on the support systems necessary for autonomous navigation. The systems will be developed and tested using a purpose-built autonomous ship simulator located at the University. (Photo: Rolls-Royce)

Rolls-Royce. The words have been used by many to signify excellence – though not with the company’s permission, of course. Rolls-Royce Marine is taking a leading position in developing and introducing the systems and technologies needed for the running of a successful business in the maritime industry of the 21st century. At a company presentation held in London earlier this year, Mikael Mäkinen, President of Rolls-Royce Marine, outlined the company’s vision for the future and its strategies to put these new systems based on new technologies into place.

18 Apr 2017

Banned at Sea: Venezuela's Crude-stained Oil Tankers

File photo (© Jose Gil / Adobe Stock)

In the scorching heat of the Caribbean Sea, workers in scuba suits scrub crude oil by hand from the hull of the Caspian Galaxy, a tanker so filthy it can't set sail in international waters. The vessel is among many that are constantly contaminated at two major export terminals where they load crude from Venezuela's state-run oil company, PDVSA. The water here has an oily sheen from leaks in the rusty pipelines under the surface. That means the tankers have to be cleaned before traveling to many foreign ports…

01 Mar 2017

Seadrill Could Be Heading for Bankruptcy

Photo: Seadrill Limited

The oil rig owner SeaDrill could be forced into bankruptcy protection soon, if it fails to reach a restructuring agreement with its lenders, reports Reuters. The rig firm, controlled by John Fredriksen, is battling with $14 billion in debt and liabilities. "In the event a consensual restructuring agreement is not concluded or an agreement to an extension is not reached, we are also preparing various contingency plans, including potential schemes of arrangement or chapter 11 proceedings," the company warns.

10 Aug 2016

Hapag-Lloyd Posts H1 Loss

File Image: A Hapag-Lloyd Containership. (credit: Hapag-Lloyd)

Freight rates down 20 pct; CEO says to focus on costs cuts, merger deal with UASC. German container shipping group Hapag-Lloyd said it dropped to a first-half operating loss as disappointing freight rates hurt its business. The loss before interest and tax (EBIT) came to 39.7 million euros ($44.26 million), down from a year-earlier profit of 267.7 million, the company said on Wednesday. Chief Executive Rolf Habben Jansen said the main focus in the second half would be to further improve the cost base and to get freights back to a more sustainable level.

07 Jul 2016

China and India Key Markets for Transportation

Image: Norton Rose Fulbright US LLP

The transport sector is looking to Asia Pacific as the key market for investment over the next five years, according to the seventh The way ahead Transport survey from global law firm Norton Rose Fulbright. China and India are the most popular jurisdictions for investment, followed by the US, with growth through consolidation viewed as the best investment opportunity currently. While confidence among respondents from the aviation and rail industries is high, owing to lower oil prices…

06 Jul 2016

Shipping Sentiment at All-time Low on Trade Slowdown, Brexit Risk

File photo: Ferdinand Harts

Global shipping confidence is at an all-time low as fears of a global recession and Britain's vote to leave the EU pile pressure on parts of the industry already suffering from its worst downturn, a leading transport survey showed on Wednesday. The global container sector, which transports everything from bananas to iPhones, as well as the dry bulk shipping market hauling commodities including iron ore and coal, are struggling with a glut of ships, a faltering global economy and weaker consumer demand.

24 Jun 2016

Expanded Panama Canal Nears Inauguration

Graphics: Panama Canal Authority

As the global shipping industry facing tough weather, the $5.25 billion expansion of the Panama canal is set to open Sunday (June 26), reports AP. The deeper, wider channel is designed to accommodate the world’s growing fleet of mega cargo ships and expanding trade between North America and the Far East. When the project opens, it will nearly triple the capacity of the original canal, allowing ships carrying up to 14,000 containers a quicker path between Asia and the USA. About a third of the canal's traffic is between U.S. East Coast ports and northern Asian ports.

23 Jun 2016

Tracking Global Piracy Trends

Graph: Clarkson Research Services

Piracy has existed since the conception of shipping, and pirate attacks on vessels continue to disrupt trade, raising vessel security concerns and impacting the operation and insurance costs for ships, says Clarkson Research Services. The drivers behind piracy are wide but primarily economic and clearly, geography is also key. This month, we take a closer look at recent shifts in the regional distribution of piracy ‘hot spots’. Piracy remains a prevalent concern within the shipping industry, raising issues around vessel security, disrupting trade routes and increasing ship operation costs.

18 May 2016

Cuba's Trade Deficit Widens as Commodity Crash Bites

Cuba's chronic goods trade deficit widened by $1.5 billion in 2015 as exports fell 24 percent and imports rose 3 percent, the government said on Wednesday, in the first data showing a commodity crash has hurt the economy. The information, released on the National Statistics Office web page did not cover Cuba's large service exports. Prices for key Cuban exports such as sugar, nickel and refined oil products all tumbled last year. The Communist-run country began cutting back on its 2016 import orders last year and has been slow in making some payments to creditors and suppliers. Cuba orders much of its imports a year in advance. Cuban…

05 May 2016

DNV GL 7 JIPs in North America

New research from DNV GL has revealed that cost management has become an even higher priority for senior oil and gas professionals  Courtesy DNV

In a concerted drive to find smart solutions to safely reduce complexities and cost in the North American oil and gas industry, DNV GL is leading seven new joint industry projects (JIP) from the region in 2016. The initiatives will support overall efficiency efforts in the pipelines, wells and subsea, umbilicals, risers, and flowlines (SURF) sectors. Key focus areas for DNV GL in 2016 will be centered around solving challenges around standardization, operations (OPEX services), safety, environment, regulations and performance.

03 May 2016

Pirates Switch to Kidnapping Crew as Oil Fetches Less

Pirate gangs in West Africa are switching to kidnapping sailors and demanding ransom rather than stealing oil cargoes as low oil prices have made crude harder to sell and less profitable, shipping officials said on Tuesday. Attacks in the Gulf of Guinea - a significant source of oil, cocoa and metals for world markets - have become less frequent partly due to improved patrolling but also to lower oil prices, according to an annual report from the U.S. foundation Oceans Beyond Piracy (OBP), which is backed by the shipping industry. "They have had to move towards a faster model and that faster model is kidnappings," OBP's Matthew Walje said, noting that ransom payouts were as high as $400,000 in one incident.

29 Apr 2016

Asia Tankers-VLCCs Rates Ease as Tanker Jams Fade

file image: A VLCC transits the Suez Canal (Suez Canal Authority)

Port congestion eases at Basra and Chinese ports; tanker demand set to expand on lower oil prices. Freight rates for very large crude carriers (VLCCs), hurt by slower-than-usual release of cargo, could slip further next week as more tonnage becomes available with the easing of recent tanker traffic jams in China, ship brokers said on Friday. Charter rates from the Middle East to Japan slipped to a six-month low on Thursday, falling by 12 Worldscale points or almost $14,000 since April 21.

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