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Tuesday, March 20, 2018

INTERTANKO speaks on the repercussions of the Prestige accident at the Seatrade conference in Dubai

The Seatrade organisation held a comprehensive conference and exhibition in Dubai 3-5 February. Erik Ranheim, INTERTANKO Manager, Research and Statistics, opened the session on markets by showing the loose correlation between Middle East oil production and tanker demand. He said that even if long haul tanker transportation costs had increased to some USD3 per barrel, it was still neither the ship owners nor the oil producers that received the main part of the costs for a gallon of gasoline at the pump. The long distance transportation costs were marginal and it was taxes that made up the biggest part of the gasoline price, in particular in Europe.

He said that the Prestige accident had damaged the credibility of the industry, even if the accident most probably would have been of a quite different magnitude if the ship had been allowed access to a port of refuge.

He went through the phase-out schedule proposed by the European Commission and the consequences for the supply of tonnage to Europe. He showed graphs comparing the MARPOL, EU and OPA90 phase-out schedules for tankers 60-199,999 dwt. The EU proposal and OPA90 have quite similar phase-out requirements, although OPA 90 allows a longer lifetime for double-bottomed and double-sided tankers, and single-hulled VLCCs may trade to LOOP and dedicated lightering areas until 2015.

The graphs used for the presentation can be downloaded from INTERTANKO’s web site.

Contact: Erik Ranheim