Oil Price News

08 Apr 2019

OSV Market: Which Way is Up?

OSV "THUNDER" owned by Jackson Offshore serving floater "DEEPWATER CONQUERER"
Source: Jackson Offshore

Any analysis of markets for offshore service vessels (OSV) usually begins with analogies to rough weather, best of times/worst of times or similar. OSV expert Seabrokers, with a home base in Stavanger, Norway, in the February edition of its Seabreeze market report follows this convention with a description of the “feast or famine” conditions in the North Sea. Recent day rate action highlights the localized nature of markets for anchor handlers (AHT), platform supply vessels (PSVs) and similar equipment…

04 Apr 2019

Rystad Expects Oil Price Rally in H1 of 2020

Graph: Rystad Energy

The energy research and business intelligence company Rystad Energy expects that a short-lived price rally through the first half of 2020 as oil prices approach $70 a barrel.It will then lose momentum and be replaced by a need for additional production cuts by Russia and the cartel of oil producing countries, OPEC, the Norway-headquartered firm said.“We retain our bullish stance for the second half of 2019 and first half of 2020 as we anticipate OPEC+ to extend production cuts through 2019…

03 Apr 2019

Monjasa Boosts Bunker Volumes by 17%

Pic: Monjasa

Global bunker company Monjasa Group boosted sales volume in 2028 reaching 4.1 million metric tonnes of marine fuels, up 17% over its previous year figure of 3.5mt.Despite a continuously challenged maritime shipping industry, 2018 was a good year for the Monjasa. Coupled with the entry of new banking partners and closer relations with oil majors, the Monjasa Group improved its business fundamentals during the year, reporting a positive net result of USD 5mln.Coupled with a higher average Brent oil price of USD 71 per barrel…

02 Apr 2019

LNG Infrastructure Needs More Money: DNV GL

Pic: DNV GL

The vast majority (85%) of professionals working in the liquefied natural gas (LNG) sector believe that more investment is needed in LNG infrastructure to satisfy forecasts for growing global demand after 2025.However, more than two-thirds (69%) stated that uncertainty over prices is limiting spending in the megaprojects needed to feed the world’s growing appetite for LNG.A new report published by DNV GL has revealed that the vast majority (85%) of LNG professionals believe several new infrastructure projects will need to be initiated in 2019 to ensure LNG supply can meet demand post-2025.

29 Mar 2019

COSCO Shipping Flags Risks From Oil Price, Trade Dispute

Photo courtesy of COSCO

China's COSCO Shipping Holdings Co Ltd said trade frictions and high oil prices pose risks for the global shipping industry this year, after confirming on Friday that its net profit for 2018 fell by more than half.The state-owned company, the world's third largest container shipping line, said net profit attributable to shareholders slid 53.8 percent to 1.2 billion yuan ($178.83 million) last year from 2.7 billion yuan a year earlier.It had warned profit would slump in January.Revenue rose 33.6 percent as demand for its container shipping and terminal business remained strong, COSCO said.

26 Mar 2019

Argus LSFO Price Assessments for Fujairah

Pic: Port Of Fujairah

Oil price reporting agency Argus Argus has launched low-sulphur fuel oil (LSFO) price assessments for the ex-wharf and delivered bunker markets in Fujairah.Fujairah is a major bunker fuel hub on the Gulf of Oman in the UAE, supplying up to 1mn t/month to vessels.The Argus LSFO 0.5pc sulphur prices for the ex-wharf and delivered bunker markets are the first assessments to be launched in the Fujairah market for the quality of fuel needed to comply with the International Maritime Organisation's (IMO) new sulphur limits for marine fuel.

17 Mar 2019

OPIS, GLX Roll-out LNG Trading Indices

Pic: EIA

IHS Markit has announced that its energy price-reporting arm, Oil Price Information Service (OPIS), has signed a strategic agreement for an end-to-end LNG trading solution with GLX, an online platform to transact physical LNG cargoes.OPIS, an internationally-referenced price reporting agency serving the oil, natural gas, chemical, coal and biofuels industries has been a long-trusted industry leader for energy price indices, real-time news and expert analysis across the global fuel supply chain.

25 Feb 2019

Maersk Drilling Mulls Listing in Recovering Market

File Image: CREDIT Maersk Drilling

Drilling rig contractor Maersk Drilling, which will soon list on the Copenhagen stock exchange, said the offshore drilling market is improving as oil firms generate more cash and look to boost reserves.A fall in oil prices in 2014 prompted a severe downturn in the industry as oil companies cancelled or postponed exploration plans, reducing demand for offshore drilling rigs."What drives our faith in a market recovery is to a high degree the higher activity we see from the oil companies…

24 Feb 2019

U.S. Fracking Shrinks by 25% in 2H2018

Graph: Rystad Energy

The new median estimate for nationwide fracking activity in December 2018 suggests 36 frac jobs per day, said a research.The energy research and business intelligence company Rystad Energy revealed in a study that 25% contraction in fracking activity between the peak in May-August 2018 and the end of the last year.It should be noted that in both November and December 2018 fracking activity level exhibits negative year-over-year change, it said."There is no doubt that significant part of this decline was driven by seasonal weather and capital constraint factors…

15 Feb 2019

Oil & Gas M&A Deal Value Up in 2018

 Pic: EY

Global oil and gas total deal value increased by US$ 79.7b during 2018 to reach US$426.8b, despite a decrease of 18% in deal volume, said EY Global oil and gas transaction review 2018.It said that while the first two quarters of 2018 saw greater deal appetite aided by rising oil prices, caution returned in the second half of the year due to a decline in the oil price to 2015 levels.Looking ahead, the 2019 mergers and acquisitions (M&A) environment will likely be shaped by lower commodity prices…

31 Jan 2019

Kirby Announces 2018 Q4/FY18 Results, Deal to Buy Cenac's Marine Fleet

Kirby Corporation announced a net loss attributable to Kirby for the fourth quarter ended December 31, 2018 of ($24.4) million, or ($0.41) per share, compared with earnings of $231.3 million, or $3.87 per share, for the 2017 fourth quarter. Excluding certain one-time charges, 2018 fourth quarter net earnings attributable to Kirby were $44.9 million, or $0.75 per share. Consolidated revenues for the 2018 fourth quarter were $721.5 million compared with $708.1 million reported for the 2017 fourth quarter.For the 2018 full year…

23 Jan 2019

The Tanker Market: 2019 and Beyond

Alex and Alice under construction. Photo courtesy Euronav

Late 2018 saw the tanker market bubble upwards through late November, with daily vessel hires moving in the direction of, though not yet reaching levels not seen since late 2014-2015, when oil prices were in freefall and inventories building to the brim. A few pundits have suggested that we are seeing a “mini 2014” where lowered oil prices are coaxing another inventory build which would drive tanker capacity utilization, and per diem freight inflows, higher. The oil market has changed over four years…

21 Jan 2019

AsiaPac Oil and Gas Industry Looks Up

Brice Le Gallo, Regional Manager, South East Asia & Australia, DNV GL - Oil & Gas

Confidence in the outlook for Asia Pacific’s oil and gas industry has more than doubled in the past two years, according to new research published by DNV GL, the technical advisor to the oil and gas industry.According to a new research from DNV GL, three quarters (76%) of senior oil and gas professionals in Asia Pacific are optimistic about the industry’s growth in 2019, compared with 58% in 2018 and 30% in 2017. The proportion of industry leaders who are confident in their own organizations’ prospects has also risen from 59% last year to 74% in 2019.

17 Jan 2019

Offshore Service Market to Outspace Onshore Shale

Graph: Rystad Energy

Spending on the offshore service sector will outpace spending on the onshore shale sector this year, said Rystad Energy.According to Rystad's Oilfield Service Research report, service companies exposed to the offshore subsea market and the maintenance, modifications and operations (MMO) sector are set to benefit from this trend reversal.At current oil price levels, spending on land rigs, fracking and other services for the shale industry is likely to stay essentially flat in 2019.

15 Jan 2019

Weak Freight Markets Hobble Sovcomflot IPO

(Photo: Sovcomflot)

Russian state-owned shipping company Sovcomflot said on Tuesday that uncertain conditions in the freight market are delaying its long-planned initial public offering (IPO).The Russian government has weighed a listing of Sovcomflot for years as part of broader privatization plans, but obstacles ranging from weak markets to international sanctions placed on Russians over Moscow's role in Ukraine crisis have prevented an IPO.The Russian economy ministry has said it had hoped to raise…

28 Dec 2018

Transocean: $830M Drilling Contract for Ultra Deepwater Drillship

While the late 2018 oil price swoon has put a damper on an otherwise positive year for offshore energy markets, Transocean Ltd. (NYSE: RIG) ends the year on a positive, signing a construction management contract, as well as a five-year drilling contract with Chevron USA, Inc. for one of its two dynamically positioned (DP) ultra-deepwater drillships currently under construction at the Jurong shipyard in Singapore.The drilling contract has an estimated backlog of $830 million, excluding mobilization and reimbursables.The rig will be the first ultra-deepwater floater rated for 20,000 psi operations and is expected to commence operations in the Gulf of Mexico in the second half of 2021.In the event of termination for convenience by the customer…

11 Dec 2018

AET Grows in Brazil

Eagle Paraiba. Photo: AET_Tankers

With the ongoing development of deepwater pre-salt plays and a decreased demand on local content in tankers and other vessels, Brazilian national operator Petrobras and other super-majors have been looking abroad for better rates and reliable operators of shuttle tankers. Claudio Paschoa, Maritime Reporter’s correspondent in Brazil spoke to Peter Liew, Global Director – Mid Size Tankers, Crude Shipping, about AET Tankers’ history and its operations in Brazil.AET (formerly American Eagle Tankers) was founded in Houston in 1994 primarily to conduct lightering operations in the Gulf of Mexico.

04 Dec 2018

Enquest Acquires Remaining Stake in Magnus

Image: Enquest

United Kingdom-based petroleum exploration and production company Enquest said it had completed the acquisition of the remaining 75% stake in Magnus, an additional 9.0% stake in the Sullom Voe Oil terminal and supply facility and additional interests in associated infrastructure from BP.The Magnus transaction, as previously announced, is expected to add approximately 60 MMboe of 2P reserves (equating to approximately 30 percent of the Group’s reserve base) as at 1 January 2018…

29 Nov 2018

IOG Delays North Sea Project Financing

Image: Independent Oil and Gas Plc

UK based oil and gas development & production company Independent Oil and Gas Plc (IOG)cautioned that current oil price volatility and capital market conditions aren’t conducive to deliver its financing plan for the core Southern North Sea project before year-end.The company which explores for and develops oil and gas properties in the North Sea said in a press release that it was ready to enter the execution phase of its core development project in the UK Southern North Sea,…

27 Nov 2018

Norden Buys Medium Range Tanker Pair

Image: Norden

Danish shipowner Norden has purchased 2 South Korean-built MR product tankers from 2009. Both vessels have a deadweight capacity of 50,000 tonnes and the acquisition further expands the Norden product tanker fleet ahead of the expected market improvement towards 2020.With the purchase, the Norden owned tanker fleet has been expanded with 4 MR vessels in 2018 bringing the total Norden tanker fleet up to 58 vessels including chartered vessels.A press release from the Denmark company…

22 Nov 2018

Heerema Fabrication Group Sells UK and Netherlands Yards

Image: Heerema Fabrication Group

Dutch offshore construction and engineering company Heerema Fabrication Group (HFG) intends to divest a significant part of its activities in the field of design and fabrication of complex steel constructions for the offshore market.HFG has been struggling for some time with insufficient project volume and marginal profitability. In addition, the risks associated with building topsides are high and clients are not prepared to pay for this risk.As a result of the divestment HFG…

13 Nov 2018

Argus Adds New Marine Fuel Price Assessments

© Nikita Starichenko / Adobe Stock

Oil price reporting agency Argus has launched five new price assessments for low-sulphur marine fuels, ahead of new global rules capping the amount of sulphur in marine fuels, also known as bunkers.International Maritime Organization (IMO) regulations will cut the limit for sulphur in bunker fuels globally from 3.5 percent to 0.5 percent from the start of 2020."Argus is pleased to be taking the lead in bringing price transparency that enables this large and emerging oil market to advance trading in preparation for the IMO 2020 required fuels…

13 Nov 2018

BY THE NUMBERS - Offshore Supply Vessels: Balanced Continued Pressure with Gradual Recovery

Credit: Alix Partners

Global consulting firm AlixPartners, in a new paper entitled, “Too many ships, too few rigs: why recovery is still a distant dream for the OSV sector,” warns that companies counting on a quick return to stability in the OSV sector are in for a rude awakening.The September report goes on to say that OSV companies continue to face pressure due to a radically changed oil industry and must take quick and decisive action in order to survive in what should be considered the ‘new normal.’Separately…

Maritime Reporter Magazine Cover Apr 2019 - Navies of the World

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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