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Tuesday, October 16, 2018


Aframaxes- the breadwinners of the year

Aframax freight rates started to improve at the beginning of 2000, and while freight rates for Aframaxes have fallen recently, these falls have been relatively less than those for VLCCs and Suezmaxes, which are currently below break-even rates for new ships.

Over the period since the end of 1999 WorldScale (WS) rates Caribs to US Gulf 70,000 dwt, which started to increase later than the Aframax rates in the N Sea, have been even more volatile ranging from around WS 100 to WS 400. Since November 1999, when it was WS 100, the average WS rate has been WS 220.

INTERTANKO has recorded 55 period contracts for tankers 70-120,000 dwt of half-a-year and longer in 2001. The average TC rate obtained has been USD 25,000 per day, ranging from $16-40,00 per day and the average age of tankers chartered was 7.4 years.

During the first part of 2001 INTERTANKO has also recorded 33 newbuilding contracts for tankers 70-120,000 dwt of 3.3 mil dwt.  Deliveries in 2001 will be limited to 13 tankers, but will increase to 40 in 2002.  To date we have only recorded 4 tankers and combos in this size range to be scrapped this year.

Click here for a detailed overview of the Aframax market


40% (1 mbd) of Iraqi oil crude oil exported from Ceyhan - PIW

According to Petroleum Intelligence Weekly (PIW), 40% (1mbd) of Iraqi crude oil is being exported from Ceyhan while another 28% (0.7) mbd is exported from Mina-al-Bakr. Iraq also exports 0.188 mbd via the Syrian pipeline and some is trucked.  In addition, Iraq exports some 0.07 mbd of products. 

Click here for an overview of the monthly development of Iraqi and other Middle East oil producers’ production


U.S. long-term energy policy set by Bush Administration

The Bush Administration’s National Energy Policy report was submitted 16 May 2001. The report, crafted by a Cabinet-level task force headed by U.S. Vice President Dick Cheney, outlines 105 recommendations including speeding up the construction of power lines, increased oil drilling, increased funding for renewal energy research, and development of clean coal technology. Furthermore the Bush administration wishes, by various means, to provide for the safe expansion of nuclear energy.  It is important to note that only 3% of the electricity is generated by using oil as the energy source, and this percentage is assumed to be declining.  Though many of the proposals outlined in Bush's energy plan can be enacted through regulations or executive orders issued by the White House, about 20 percent of them have to be approved by the House and Senate.

The report expects that over the next twenty years U.S. oil consumption may grow by 6 mbd (or 33%) while domestic oil production is expected to continue its decline by a further 1.5 mbd. To meet demand, oil imports would have to grow by 7.5 mbd by 2020. By then, U.S. oil production would supply less than 30% of U.S. oil needs. Oil pipelines and refining capacity are in need of repair and expansion. Not a single major oil refinery has been built in the U.S. for nearly a generation. U.S. natural gas consumption may grow by more than 50% over the next 20 years, whereas U.S. natural gas production may grow by only 14% in the same period. On the other hand, American energy consumption in relation to GDP growth (energy intensity) has improved. Had the intensity of U.S. energy use remained constant since 1972, consumption would have been 74% higher in 1999 than it actually was. However, energy use per capita has remained constant over the last 15 years. Critics of the report have said that the plan sets no targets for improved energy efficiency and has offered no short-term relief for out-of-control electricity prices on the U.S. West Coast.

The U.S. Congress has barred drilling companies from tapping offshore oil and natural gas reserves along nearly 610 million acres of the U.S.'s shoreline - a moratorium the Clinton administration recently extended until 2012. But now President Bush has directed the Interior Department to "re-examine" that policy, as specified in his multi-tiered national energy strategy. The report recommends opening a small fraction of the Artic Natural Wildlife Refuge to environmentally regulated exploration and production.