Oil Flowing News

The U.S. on Thursday imposed sanctions on maritime companies and vessels for shipping Russian oil sold above the G7's price cap, as Washington seeks to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine.The U.S. Treasury Department in a statement said it slapped sanctions on three United Arab Emirates-based companies and three vessels owned by them in the action, accusing the vessels of engaging in the export of Russian crude oil priced above the $60 a barrel cap.

U.S. penalties on shippers transporting Russian oil in breach of the G7's price cap could push more Russian cargoes onto vessels referred to as the ghost fleet and away from mainstream tankers, shipping sources and analysts told Reuters.The cap bans Western companies from providing maritime services for Russian seaborne oil exports sold above $60 a barrel.It was designed to keep oil flowing to markets while reducing Russia's energy earnings that it can use to finance its war on Ukraine…

The U.S. on Thursday imposed the first sanctions on owners of tankers carrying Russian oil above the G7 price cap of $60 a barrel, one based in Turkey and one in the United Arab Emirates, in an effort to close loopholes on the mechanism designed to punish Moscow for the war in Ukraine.The U.S., other G7 countries and Australia imposed the cap last year, seeking to reduce Russia's revenues from seaborne oil exports as part of sanctions for its invasion of Ukraine.The cap bans Western companies from providing maritime services, including insurance, finance and shipping, for Russian seaborne oil exports sold above $60 a barrel, while seeking to keep oil flowing to markets. Caps also were imposed on Russian fuel exports.U.S.

The IMO is urging Member States to contribute equipment to help UN-led efforts to prevent a possible catastrophic oil spill from the FSO Safer, an ageing and rapidly decaying floating storage offshore (FSO) unit moored 4.8 nautical miles off the Red Sea coast of Yemen.A converted super tanker, the FSO Safer contains an estimated 150,000 metric tonnes (approximately 1.1 million barrels) of crude oil, four times the amount spilled during the Exxon Valdez incident in 1989. It has been moored at Ras Isa since 1988 where it had been receiving…

The U.S. Treasury Department said late on Wednesday that shipments facing the G7's upcoming price cap on oil products such as diesel and gasoline from Russia will have a grace period to arrive at their destination.G7 democracies and Australia are planning to cap prices on two oil products from Russia from Feb. 5 as part of their effort to reduce Moscow's export revenues as it wages war in Ukraine. The move will follow the G7's cap on Russia's seaborne crude oil exports that went into effect on Dec. 5.The measures seek to limit Russia's revenues gradually.

Chinese refiners are paying for Russian crude oil using cash transfers to maintain imports from Russia’s Fast East, as banks shy away from financing the oil because of sanctions, sources with knowledge of the matter said.Global oil prices have soared to their highest in a decade as banks halted financing Russian oil after the United States and other countries ramped up sanctions on Moscow following its invasion of Ukraine.Spot crude premiums and freight rates also spiked, piling on buyers’ costs.Several European and U.S.

Chinese buyers of Iranian oil are starting to shift their cargoes to vessels owned by National Iranian Tanker Co (NITC) for nearly all of their imports to keep supply flowing amid the re-imposition of economic sanctions by the United States.The shift demonstrates that China, Iran's biggest oil customer, wants to keep buying Iranian crude despite the sanctions, which were put back after the United States withdrew in May from a 2015 agreement to halt Iran's nuclear program.The United…

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, which won't admit crude-stained ships for fear of environmental damage to their harbors, port facilities or other vessels. The…

Libyan forces loyal to eastern commander Khalifa Haftar said on Monday they had tightened their control over four major oil ports, casting a Western-backed project to unite Libya and revive oil exports into deep uncertainty. Haftar's forces met little resistance as they seized the terminals at Ras Lanuf, Es Sider, Zueitina and Brega in an operation launched on Sunday, displacing a rival armed faction aligned with the U.N.-backed Government of National Accord (GNA) in Tripoli. The advance is the latest power struggle over the OPEC nation's energy assets, after the 2011 fall of Muammar Gaddafi and the chaos that followed left the North African country splintered into competing rival armed factions.

The United States has started to import small batches of Colombia's Puerto Bahia heavy crude, an unusual development that underscores at least a temporary shift in the type of heavy oil flowing into U.S. refineries. Typically, U.S. refineries have received their heavy oil from Canada, Venezuela and Mexico. But shipments of those grades have been limited by Canada wildfires, and slipping output in Mexico and Venezuela. The first shipment of the Colombian heavy crude arrived at Lake Charles, Louisiana in February co-loaded with Vasconia crude for refiner Phillips 66, followed by a 260,000-barrel cargo in March for the same customer, according to sources and data available from the U.S. Energy Information Administration.

Shipping services that support Russia's attempts to extract oil from remote parts of the Arctic will run into difficulties as banks scale back energy financing due to Western sanctions, increasing transport costs for the frontier sector. Sanctions imposed on Russia by the United States and European Union over Ukraine have targeted the delivery of oil technology, goods and services, aiming to make it impossible for Moscow to access new oil sources. The world's largest energy exporter, Russia relies on oil and gas exports for about half its federal budget.

The Jones Act has been blamed for everything from higher prices of goods and oil to a shortage of rock salt supply in the Northeast during the past winter, but the 94-year-old U.S. federal statute governing the U.S. coastal shipping trades will not be going away anytime soon. The solid status of this deeply entrenched U.S. federal maritime law is reflected in heavy investments by oil, logistics and shipping companies in this lucrative domestic shipping sector. Last December, Kinder Morgan spent nearly $1 billion in its acquisition of its first Jones Act tanker assets when it bought American Petroleum Tankers and State Class Tankers. The market outlook for U.S.- flagged oil tankers remains bright, and some companies are banking on that.

Crude oil prices on both sides of the Atlantic rose on Friday as data showed strong jobs growth in the United States and investors cast doubt on reports Libya's oil ports were about to reopen. The March U.S. non-farm payrolls report showed 192,000 jobs were added in March in major test of the argument that the economic weakness of January and February was due to bad weather. Expectations had been building that an eight-month blockage of Libya's oil export ports would end after rebels and the government said they were close to an agreement. The Libyan government said it had seen evidence of "good intentions" at indirect talks with eastern rebels that could lead to renewed exports.

BP Exploration and Production Inc. Agrees to Plead Guilty to Felony Manslaughter, Environmental Crimes and Obstruction of Congress Surrounding Deepwater Horizon Incident; BP Agrees to Pay a Record $4 Billion in Criminal Fines and Penalties Two Highest-Ranking BP Supervisors on Deepwater Horizon Oil Rig Charged with Manslaughter and Former Senior BP Executive Charged with Obstruction of Congress. BP Exploration and Production Inc. (BP) has agreed to plead guilty to felony manslaughter, environmental crimes and obstruction of Congress and pay a record $4 billion in criminal fines and penalties for its conduct leading to the 2010 Deepwater Horizon disaster that killed 11 people and caused the largest environmental disaster in U.S. history, Attorney General Eric Holder announced today.

Former BP Engineer Arrested for Obstruction of Justice in Connection with the Deepwater Horizon Criminal Investigation; First Criminal Charges to Result from the Deepwater Horizon Task Force Investigation. Kurt Mix, a former engineer for BP plc, was arrested today on charges of intentionally destroying evidence requested by federal criminal authorities investigating the April 20, 2010, Deepwater Horizon disaster, announced Attorney General Eric Holder, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S.

Maritime Reporter invited Carleen Lyden-Kluss, Co-Founder and Executive Director of the North American Marine Environment Protection Association to provide an overview of the Deepwater Horizon disaster in the Gulf of Mexico. On April 20, our maritime world changed. No matter how you slice it, everyone in the maritime industry feels the effects of the tragedy; the loss of 11 lives and injury to 17 others, the extensive environmental impact, the economic fallout and ongoing costs, the exposure of weaknesses in the response system, and the regulatory changes that will result from this. The details of the event are well known:  the Deepwater Horizon oil spill, also called the BP Oil Spill/the Gulf of Mexico oil spill, is now considered the largest offshore spill in U.S. history.

According to a June 12 report from Nola.com, the Coast Guard has told BP that the system the company has developed for capturing oil gushing from a collapsed Gulf rig isn't big enough and won't be expanded fast enough. Responding to a plan BP submitted last week to improve and expand the performance of its containment cap system, Rear Adm. James Watson, the federal on-scene coordinator, said the giant company must do better. In light of the estimate released June 10 by a federal panel of scientists who said the amount of oil flowing into the Gulf of Mexico could be 20,000 to 40,000 barrels a day -- double the previous estimates - BP's plan is insufficient, Watson said in a letter dated June. (Source: Nola.com)

The Interagency Alternative Technology Assessment Program workgroup, newly established by the National Incident Commander for the BP Deepwater Horizon oil spill, announced a new effort to collect and review oil spill response solutions from scientists and vendors. The Coast Guard’s Research and Development Center, in collaboration with interagency partners, issued a Broad Agency Announcement on www.FedBizOpps.gov, calling for the submission of white papers that cover: oil sensing improvements to response and detection; oil wellhead control and submerged oil response; traditional oil spill response technologies; alternative oil spill response technologies; and oil spill damage assessment and restoration.

Although this has been considered an off year in the Gulf of Mexico from rig count and fleet utilization standpoints, it is another record year for major offshore operators expanding their fleets and the shipyards that are building these vessels. Last year, over 50 supply boats were delivered and about an equal number of crew/supply vessels made their way into the fleets of operators. This year looks equally robust as vessels are being ordered in quantities of four, six and even 10. This begs the question as to why offshore vessel operators are order record number of vessels if the business is sluggish? The answer is two fold: Deep water and deep gas. Drilling activity is bound to increase based on these two factors industry leaders believe.

The Paris-based International Energy Agency has welcomed OPEC's decision not to make any further cuts in production. Despite a steep fall in oil prices since the terrorist attacks of September 11, the Organisation of Petroleum Exporting Countries today rejected the option of lowering its target for the seventh time this year. "A further cut would simply have added uncertainty to an already uncertain market," said Robert Priddle, executive director of the IEA. Priddle described the OPEC stance as a display of moderation. He also expressed appreciation of statements by OPEC countries and by the Organization's Secretary General, which have pledged to keep oil flowing to consuming countries in the event of any supply disruption.