Full Tanks & Tankers: A Stubborn Oil Glut Despite OPEC Cuts
After the first OPEC oil production cut in eight years took effect in January, oil traders from Houston to Singapore started emptying millions of barrels of crude from storage tanks. Investors hailed the drawdowns as the beginning of the end of a two-year supply glut - raising hopes for steadily rising per-barrel prices. It hasn't worked out that way. Now, many of those same storage tanks are filling back up or draining more slowly than investors and oil firms had expected, according…
Libyan Port Fire Destroys 1.8m Barrels of Crude
A fire raging at an oil storage facility at Libya's Es Sider port has destroyed up to 1.8 million barrels of crude, a top oil official said on Tuesday. Total damage so far, including the lost oil, is estimated at $213 million, al-Mabrook al-Buseif, the top oil official of the recognised Libyan government, told Reuters. (Reporting by Ayman al-Warfalli; Writing by Ulf Laessing; Editing by David Goodman)
Ecology Proposes Spill Prevention and Response Readiness Rules
Washington waters and to improve response readiness. trucks and rail cars. facility and vessel operators who transfer oil to or from vessels. practices to prevent spills. required to deploy oil-spill containment boom prior to transferring oil. activities. that they can mount an effective, timely response if they spill oil. spill readiness drills.
Washington State – Oil Transfer Requirement Training
Washington companies and operators that transfer oil over water to non-recreational vessels got some unanticipated help this month on successfully complying with the Department of Ecology (Ecology) oil transfer rules adopted in September 2006. On March 8 and 15, Ecology staff made technical assistance visits to 65 oil transfer locations across the state. Since different requirements are being phased in during the rule's first year, the agency's "Answers to Transfers" campaign was designed to answer questions and provide guidance about how the rule will affect different types of regulated facilities. The new regulations describe how oil must be transferred over water to tank vessels…
Washington State Bolsters Spill Prevention and Response
In anticipation of adopting new safeguards regarding oil transfers over water and early spill response requirements, the Department of Ecology (Ecology) has added new spill prevention inspectors, a spill responder and a contingency plan reviewer to oversee mobile oil facilities. For the first time, Ecology is stationing a vessel and oil-handling facility inspector and a hazardous material responder in Bellingham. Both positions will focus on prevention and response activities in Island, San Juan, Skagit and Whatcom counties. There are three oil refineries and two oil pipelines in the region that generate heavy ship traffic in northwest Washington. To prevent oil spills in the Puget Sound and lower Columbia River, the department has added four inspectors.
First Supertanker Docks at Vopak-Dialog Terminal
A supertanker carrying about 1 million barrels of Middle East crude docked on Monday at a terminal jointly run by Vopak and Dialog Group in Malaysia, the companies said. The arrival of tanker MT Mesdar marked the start of operations at southeast Asia's first commercial crude oil tank farm. The tanker had been chartered by CSSA, the shipping arm of French oil major Total, and it loaded the crude cargo at Fujairah in the United Arab Emirates in February, Reuters shipping data showed. Located in Pengerang, in the southern state of Johor, just across the Johor Strait from the Singapore trading hub, the site can hold 420,000 cubic metres of crude (2.6 million barrels) and also offers blending and distribution services.
With New Project, BP Breathes Life into North Sea
BP has started production at an oilfield in the North Sea after a $5.7 billion redevelopment, one of the largest such projects there in recent years that will breathe new life into the ageing offshore basin. The Quad 204 project in the western Shetland region, also knows as Schiehallion, is expected to ramp up production throughout 2017 to reach a level of 130,000 barrels per day, BP said in a statement. The Schiehallion field was first developed in the mid-1990s. The 4.4 billion pound project, which was sanctioned in 2011, will unlock an estimated 450 million barrels of oil and gas, extending its life into 2035. The upgrade includes the construction of a giant floating…
S.Korea Plans to Boost Iran Oil Imports
South Korea plans to boost imports of Iranian oil, especially condensate, this year to meet growing demand after sanctions on the Islamic nation were lifted in January. The world's fifth largest importer of crude is also a big buyer of condensate, a super light oil that can be processed into fuels and petrochemicals. Iran's return would help ease tight condensate supply in a market dominated by fellow OPEC producer Qatar. "We will increase oil and natural gas (liquids) imports from Iran, especially Iranian condensate," South Korea's trade and energy ministry said on Tuesday. Iran is exporting 100,000 barrels of oil a day to South Korea, one of its main crude customers, and hopes to double that figure by the end of 2016, Oil Minister Bijan Zanganeh was quoted as saying on Monday.
Enterprise: Clients Must Pay for Dock Work
Enterprise Products Partners LP said on Wednesday that companies using its crude oil storage facility in the Houston Ship Channel must pay extra for dock services, brushing off complaints from client BP Plc . "We believe if you want a service, you pay for it," Enterprise Chief Operating Officer Jim Teague told analysts when asked about concerns, first reported by the Wall Street Journal, that the company's strong position in Gulf Coast storage gives it too much pricing power. Britain's BP has reportedly told the U.S. Federal Trade Commission that Enterprise, a major midstream company, has started charging $1 a barrel in dock fees for crude it handles at the Houston site, on top of storage fees. Since Houston is the top U.S. petrochemicals port, the dock fees could add up to big revenue.
Tianjin Resumes Commodity Port Ops
Oil, gas and iron ore imports resume after disruptions; Strategic oil reserves in the region not affected. Many operations have resumed at China's Tianjin port, trade sources said, after explosions last week that killed more than 100 people and disrupted business at what is an important oil, gas and bulk import harbour for Asia's biggest economy. The explosions on Aug. 12 led to the disruption of all chemical and oil tanker discharges at the port, and imports of iron ore were also affected. But shipping data from Reuters on Monday showed that tankers were discharging again, with traders and shippers confirming that operations had restarted over the weekend. Port officials were not immediately available for comment.
Ship Fined for Failure to Have Oil Spill Readiness Plan
The Washington Department of Ecology (Ecology) has levied an $8,500 fine to the Greek shipping firm Marmaras Navigation Co. Ltd. for operating a cargo vessel in Washington waters without a state-approved oil spill readiness plan. The penalty against Marmaras Navigation marks the first time Ecology has levied a fine under its new oil spill contingency plan rule adopted in October 2006. Ecology requires that cargo and passenger ships, tank vessels, oil storage facilities and pipeline companies demonstrate that they can mount an effective, timely response if they spill oil. Under the rule, the vessel must either have their own approved spill readiness plan or be enrolled in one of the two non-profit organizations with approved plans that cover vessels in Washington.
Drydocks World wins ADIPEC Awards
Drydocks World and Maritime World, the international providers of maritime and offshore services to the shipping, oil, gas, and energy sectors have been awarded the Best Oil & Gas Project Award for outstanding Project Excellence on the SOLAN Project. The gala event was held on the 30th anniversary of Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) at the Emirates Palace, Abu Dhabi on November 10 2014. According to ADIPEC officials, the judging panel received 396 participant entries from over 100 companies across 27 countries.
China's Shandong Tanks Are Full, Tankers Await Discharge
Most crude tankers float for less than a week; half of fuel oil tankers are carrying bitumen mixture. More than 20 tankers carrying crude and fuel oil are anchored off the ports of China's eastern Shandong province, as onshore storage tanks are full, according to trade sources and shipping data on Thomson Reuters Eikon. Frenzied buying by independent refiners, most of whom are located in Shandong, and trading companies seeking to re-sell crude to these refineries have filled up tanks, they said. "Oil inventories at storage tanks are very high," a China-based trader said.
Barents Sea Oil Terminal: Development Concept Chosen
Statoil and its partners have chosen a development concept for the Skrugard field in the Barents Sea. The concept includes a floating production unit with a pipeline to shore and a terminal for oil from the Skrugard field at Veidnes outside Honningsvåg in Finnmark. The field is scheduled to come on stream in 2018. "The decision to bring Skrugard oil ashore at Veidnes is a key element of the further development of Norwegian oil and gas industry. This may spark off a new industrial era.
MXB Begins Physical Operations in Mumbai
Matrix Bharat Pte. Ltd. (MXB), a supplier of marine fuels in India, has begun physical operations in Mumbai. In conjunction with this, MXB has commenced operations on Jawahar Dweep, an island off the southeastern coast of Mumbai. MXB is a joint venture between Matrix Marine Fuels and Bharat Petroleum Corporation Ltd. (BPCL), one of India’s largest PSU (state owned) oil refining and marketing companies. The company will provide physical products at Mumbai’s Outer Port Limits (OPL), servicing vessels that are waiting to berth, as well as vessels making bunker-only-calls.
SMP Expands Ops in Mobile, Ala.
Shell Marine Products (SMP), the global supplier of marine fuels, lubricants and services, announced the start-up of its bunker fuels operations in Mobile, Ala. The company already has a strong business base in the USA Gulf Coast region, supplying bunker fuels and lubricants, and has expanded its geographic coverage to offer fuel oil, gas oil and lubricants to customers in Mobile. Shell Marine Products has fuel oil storage facilities in Mobile Harbor located at Radcliff/Economy Terminal. The company has also secured privileged access to the only double-hull bunker barge in the region to facilitate all fuel oil deliveries. With over 1,000 ships calling Mobile harbor each year, the region is an interesting bunkering market.
Washington State Proposes Changes
Changes to state environmental regulations proposed by the state Department of Ecology (Ecology) should reduce the risk of oil spills into Washington's waters during oil transfers. Aiming for a goal of zero oil spills, Ecology developed the draft "rules" with a special advisory committee made up of the oil industry and other citizen advocates. Changes in state oil-transfer regulations were requested by the 2004 Legislature following the Dec. 30, 2003, spill of 4,700 gallons of heavy oil into Puget Sound while a tank barge was receiving oil cargo from a Richmond Beach oil-storage facility near Seattle. "We believe these new standards can make a significant difference in the amount of oil that is both catastrophically and cumulatively dripped…
Brightoil Reports Steady Growth in Interim Results
Brightoil Petroleum (Holdings) Limited announced its interim results for the six months ended December 31, 2014, reporting steady growth over the period. During the period, profit attributable to the owners of the group increased 3% year-on-year to HK$561 million. Basic earnings per share amounted to 6.41 HK cents, up 3% from a year ago. Total revenue climbed 11% from HK$40.3 billion in 1HFY2014 toHK$44.9 billion for the period as the twin-engines business model (upstream and mid-downstream businesses) enabled the group to secure steady growth amid volatile oil prices.
Brightoil Petroleum Transforms
Brightoil Petroleum (Holdings) Limited, the largest service provider of marine bunkering in Shenzhen Port and its surrounding areas, announced its interim results as at 31 December 2008. For the six months ended 31 December 2008, the group's revenue surged to HK$2,942,195,000, representing a skyrocketing increase of approximately 237 times as compared to the corresponding period last year. Gross profit posted a year-on-year growth of 1,528% from HK$12,004,000 to HK$195,444,000. Profit attributable to shareholders went up significantly by 232% to approximately HK$168,082,000 and earnings per share jumped by 229% to 13.8 HK cents when compared to the same period of the previous year.
Unannounced Spill Drills Exceed Expectations
Four oil-handling facilities in Washington had unannounced spill drills sprung on them last week by the state Department of Ecology and all four passed. The four facilities that participated in the simultaneous drills were the BP Cherry Point Refinery in Ferndale, Shore Terminal in Tacoma, Tesoro Terminal in Port Angeles and ConocoPhillips-Yellowstone Pipeline in Spokane. Beginning around 10 a.m. on Wednesday, March 9, staff from Ecology, the U.S. Coast Guard and the federal Environmental Protection Agency arrived at the facilities and presented scenarios that called for the companies to notify appropriate officials, organize a command center, and assess what type of spill response was needed to protect the public, the environment and workers.
WA Oil Transfer Rules Protect Waters
In September 2006, state lawmakers directed Washington Department of Ecology (Ecology) to adopt stringent oil transfer rules after 4,700 gallons of heavy fuel oil spilled during an oil transfer operation at Chevron-Texaco's Richmond Beach fuel terminal in December 2003. Swift currents drove the oil ashore on the Suquamish Tribe shellfish beds at Doe-kag-wats beach and salt marsh at Indianola in Kitsap County. In 2008, nearly 15 billion gallons of oil were transferred over Washington waters by ship, fueling facility, tank truck or rail, according to Ecology reports. That equals 1.7 million gallons an hour. Since the rules went into effect, Ecology has seen reductions in the amount of oil spilled. In 2008, only about 158 gallons were spilled to Washington waters during fuel transfers.
Moose Boats Delivers Two Patrol Vessels
Moose Boats, an aluminum boat designer and manufacturer in the San Francisco Bay Area announced the delivery of two patrol boats in late 2013. Moose Boats delivered a new M1-44 Catamaran Patrol Boat to Bridgeport Police Department on Long Island Sound. The M1-44 all-aluminum catamaran is powered by twin Cummins QSC8.3 600hp marine turbo diesel engines coupled via TwinDisc MG5075SC transmissions to twin Hamilton 322 water-jets with Hamilton Blue Arrow Controls. The vessel named “John Jack Flynn III” features a generous fully enclosed cabin complete with shock mitigating seats…
Marathon Traders Gain E.Coast foothold with Hess Deal
Marathon Petroleum Corp is poised to expand its growing Midwest and Gulf Coast fuel trading operation to the East Coast with Thursday's deal to buy Hess Corp's retail network and transport contracts. The purchase will give Marathon control of Hess's gasoline stations and access to pipelines, including the capacity to ship approximately 40,000 barrels per day on the sought-after Colonial Pipeline from the Gulf Coast to the East Coast, according to the companies. The $2.9 billion deal is expected to close late in the third quarter. That likely means opening up new trading opportunities. Marathon's nearest refinery is nearly 500 miles east of New York City in Canton, Ohio, with few major pipelines in between.