Oil Prices News

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.

16 Jan 2019

Ship Fuel: Singapore Bunker Volumes Dip, 2019 Uncertain

© stockphoto mania/AdobeStock

Sales of marine fuels in Singapore, the world's biggest ship fueling port by volume, totaled 49.8 million tonnes in 2018, down 2 percentfrom a record the year before, the Maritime and Port Authority of Singapore (MPA) said on Monday.December sales volumes of marine fuels, also known as bunkers, reached an 11-month high of 4.308 million tonnes, up 10 percent from November and the second-highest for the year, the data showed.The strong month helped lift Singapore's 2018 marine fuel sales figures to the second highest on record…

14 Jan 2019

Crude & Fuel Outlook: Fund Managers Neutral

© MiaStendal/AdobeStock

Hedge fund managers show signs of having completed their recent sale of crude and refined fuels, with positions edging up slightly in the first week of the new year, amid hopes a recession can be averted.Oil prices have bounced off their recent lows, the U.S. dollar has weakened against most other major currencies and expectations of a trade deal between the United States and China are rising.Portfolio managers raised their net long position in ICE Brent crude futures and options by 6 million barrels to 158 million barrels in the week to Jan.

11 Jan 2019

PetroVietnam: Maritime Tensions Weigh on Operations

(Photo: PetroVietnam)

Vietnam's state oil firm PetroVietnam said on Friday that tension in the South China Sea will continue to weigh on its offshore operations this year.The company, formally known as Vietnam Oil and Gas Group targets to produce 12.37 million metric tonnes of crude oil this year, down 11.45 percent from last year's output, it said in a statement.Vietnam and China have been embroiled in maritime disputes in parts of the busy waterway, where China claims 90 percent of the potentially energy-rich maritime territory, which Vietnam calls the East Sea."The complicated developments in the East Sea have h

11 Jan 2019

Oil and Gas Digital Investment Set to Surge

Digital Oil and Gas. Pic: Cisco

Global oil and gas executives are preparing to accelerate their investment in digital technologies, primarily as they seek to double down on their cost-saving ambitions.An EY survey of 100 global oil and gas executives found that 89 percent expect to step up their investment in digital over the next two years.Despite oil prices reaching more attractive levels during the third quarter of 2018, operational efficiency remains a top priority owing to a legacy of falling prices in…

08 Jan 2019

South Korean Shipbuilding No.1 Again

Image:  Hyundai Heavy Industries Co

South Korea’s shipbuilding industry reclaimed the title of world’s biggest shipbuilder (in terms of orders volume) in 2018 for the first time in six years, since it had conceded No.1 spot to China in 2012.The global orders of Korean shipbuilders stood at 12.6 million compensated gross tonnage (CGT) last year, accounting for 44.2 percent of the total orders, according to Clarkson Research, shipbuilding and marine analysis agency in the U.K. The orders of Chinese shipbuilders were 9.1 million CGT…

02 Jan 2019

Global FSRU Market to Grow 9% in Next Three Years

Image: Gazprom Marketing & Trading

The global floating storage regasification unit (FSRU) market is expected to post a CAGR of over 9% during the period 2018 – 2022, said a market research report. However, the growth momentum of the market is expected to decelerate during the year-over-year growth.According to a report from Technavio, stabilisation of crude oil prices is one of the major trends being witnessed in the global FSRU market 2018 – 2022.From 2014 to 2016, crude oil prices have witnessed fluctuations with steep variations in the price of crude oil per barrel…

26 Dec 2018

Soldier-run PDVSA and AWOL Oil Output

© natanaelginting/Adobe Stock

Last July 6, Major General Manuel Quevedo joined his wife, a Catholic priest and a gathering of oil workers in prayer in a conference room at the headquarters of Petroleos de Venezuela SA, or PDVSA.The career military officer, who for the past year has been boss at the troubled state-owned oil company, was at no ordinary mass. The gathering, rather, was a ceremony at which he and other senior oil ministry officials asked God to boost oil output."This place of peace and spirituality…

06 Dec 2018

The Tipping Point: U.S. Exports more Oil than it Imports

© VanderWolf Images/Adobe Stock

The United States last week exported more crude oil and fuel than it imported for the first time on record, underscoring the nation's growing influence as a supplier of oil to the world.Exports of crude surged in the week to Nov. 30 to more than 3.2 million barrels per day, the U.S. Energy Information Administration said on Thursday.When adding in all imports and exports of crude and refined products, for the week the U.S. exported a net 211,000 bpd – the first time that has happened, according to U.S.

15 Nov 2018

Teekay Expects Recovery in Tankers Market

Image: Teekay

Crude tanker rates have continued to strengthen during the early part of the fourth quarter of 2018, particularly in the Atlantic Basin with Aframax tanker rates in this region attaining levels not seen since December 2016 and Suezmax tanker rates averaging the highest since March 2017, says Teekay Tankers.The conventional tanker fleet operator said that crude tanker spot rates firmed counter-seasonally during the third quarter of 2018, which is typically the weakest quarter of the year, as higher OPEC and Russian oil production, coupled with strong crude oil exports out of the U.S.

15 Nov 2018

Hyundai Merchant Marine Loss Grows in Q3

Image: Hyundai Merchant Marine

South Korea's largest shipping firm by sales Hyundai Merchant Marine (HMM) said that its operating loss in the third quarter increased to 123.1 billion won (US$108.65 million) from 29.5 billion won in the same period last year.According to the company, the net loss widened due to unfavorable market conditions and high fuel costs.According to Yonhap, the net loss reached 166.7 billion won (US$146.7 million) in the July-September period, compared with a net loss of 60.3 billion won during the same period last year."Bunker fuel prices reached $445 per metric ton in the third quarter…

14 Nov 2018

Maersk Warns Trade War Will Impact Box Shipping

Maersk Chief Executive Soren Skou (CREDIT: Maersk)

Top U.S. importers are stocking up on Chinese goods before new import tariffs take effect, shipping giant A.P. Moller-Maersk said on Wednesday, but warned a trade war would hit demand for container shipping in the coming years.Maersk's data indicated that imports into the United States from China had grown 5 to 10 percent year-on-year in the third quarter as companies such as Walmart and Home Depot built up inventories to avoid new import tariffs, Chief Executive Soren Skou said."The irony is that after (U.S.

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…

26 Oct 2018

Fugro Q3 Revenue Jumps

(Photo: Fugro)

Dutch deep-sea prospector Fugro has reported a 29.1 percent rise in third-quarter revenue on a comparable basis, driven by the expansion of offshore wind developments and a recovery in the global oil and gas market.Rising oil prices have helped Fugro by making it more economic to prospect for the hard-to-reach subsea deposits in which it specializes."In our early cyclical marine site characterisation activities we are experiencing sharp growth and improving prices, resulting in strongly improved profitability…

25 Sep 2018

Smarter Energy Policy Will Broaden Offshore Recovery

For the past few years, depressed commodity prices, stricter regulatory requirements and competition from onshore development at home and from other countries offering attractive offshore lease and royalty terms have had severe impacts on new exploration in the U.S. Gulf of Mexico. Thankfully, the tide appears to finally be turning.In August, Gulf of Mexico Lease Sale 251 drew increased competition for offerings and $178 million in high bids, $53 million more than previous sale held in March.

25 Sep 2018

Asset Management Optimized Using Aerial Drones

© Riko Best / Adobe Stock

A new alliance aims to shake up traditional asset management and engineering inspection services in North America.Partners DCL Rigging & Mooring (DCL) and Aerostar Drone Solutions Inc. intend to utilize advanced, multiple-imaging sensors on unmanned aerial vehicles (UAVs) to dramatically lower the cost of conducting engineering surveys and inspection engagements.“We are using our 50 years of combined industry and engineering experience to develop alternative inspection techniques utilizing UAV technology,” said Darren Jackson, President of Aerostar.

25 Oct 2018

Moore Stephens: Ship Operating Costs to Rise in 2018, 2019

Richard Greiner, Moore Stephens partner, Shipping and Transport

International accountant and shipping consultant Moore Stephens says total vessel operating costs in the shipping industry are expected to rise by 2.7% in 2018 and by 3.1% in 2019, according to our latest survey.Responses to the firm’s latest annual Future Operating Costs Survey revealed that drydocking is the cost category likely to increase most significantly in both 2018 and 2019, accompanied in the latter case by repairs and maintenance. The cost of drydocking is expected to increase by 2.1% in 2018 and by 2.3% in 2019…

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

08 Oct 2018

Ensco to Buy Rowan in $2.38 Bln Deal

©  Lukasz Z / Adobe Stock

Offshore driller Ensco Plc said on Monday it plans to buy smaller rival Rowan Cos Plc in an all-stock deal valued at $2.38 billion, as it looks to expand its fleet and benefit from a partnership with Saudi Aramco.This is Ensco's second deal since OPEC-led efforts boosted oil prices in the second half of 2016. Ensco bought rival Atwood Oceanics in a similar deal last year.Rowan shareholders will receive 2.215 Ensco shares for each share held.

06 Nov 2018

LNG Trade to Increase by 10% in 2020

Pic: Golar LNG Limited

Dominated by new U.S. volumes, liquefied natural gas (LNG) trade is expected to increase by 10 percent per annum from 290 million tons in 2017 to around 388 million tons in 2020, said Golar LNG.According to industry analysts, ton mile demand is expected to increase by more than 40 percent over the same time frame. Annual fleet growth of 5 percent through to 2020, will, according to industry analysts, not be sufficient to meet this demand.Leading brokers continue to expect a 30-40 vessel shortfall.

09 Nov 2018

Low EU River Stir Fuel Markets in Singapore

File Image: An inland cargo movement on the Danube River. CREDIT: Adobestock / © digitalstock

Rhine water levels hit record lows in October; river is a key fuel transport hub for Europe.Low water levels on the Rhine river have caused a fuel supply deficit in parts of Europe's industrial heartlands that is sucking up cargoes from more than 10,000 km away in Singapore.Following a long, scorching summer, water levels on the Rhine - a key commodity shipping lane connecting industrial centres in Switzerland, Germany, France and the Netherlands to major seaports - fell to record lows…

01 Nov 2018

Cautious Consolidation for OSV Companies Brings Market Change

A Gulfmark offshore support vessel (CREDIT: Gulfmark)

Will a rising tide in the offshore oil markets float all the boats? In the U.S. Gulf of Mexico, that remains to be seen.Offshore services, exploration and production are on a roll. In early October, yet another business combination of big drillers was announced. In a sign of optimism, Ensco announced its plan for an all-stock acquisition of Rowan Offshore, worth around $2.4 billion. The new company will be domiciled in the United Kingdom, but will have a large presence in Houston.

04 Nov 2018

Fitch Warns: Shippers' Costs and Capex may Increase

Image: Port of Hamburg

More stringent fuel regulations regarding sulphur content could significantly increase global shipping companies' operating costs and capex needs, says Fitch Ratings in a new report."This may negatively affect their credit quality unless they manage to pass these costs to customers. Many shipping companies have started implementing fuel surcharges to recover costs associated with the new sulphur cap regulation, but their ability to sustain these will depend on market fundamentals…

Maritime Reporter Magazine Cover Dec 2018 - Great Ships of 2018

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