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Tuesday, July 17, 2018

Open Session – ‘Tankers - your energy link’

Chaired by Mr Stephen van Dyck (Maritrans Inc.), this session focused on the tanker industry and its association with the world's energy supplies and demands.

Two presentations by Matthew Simmons (Simmons and Company International) and John Felmy (American Petroleum Institute) gave a global and US perspective on the main oil and gas supplies and demands. Mr Felmy concentrated on the link between the tanker industry and the energy markets noting that although energy efficiency was increasing globally, oil demands were outstripping this efficiency increase. This would in turn ensure a continued growth in the tanker market over the next 20 years. Mr Simmons continued with this outlook stating that a forecasted change of 2% in oil demand would translate into a demand for between 45 – 60 VLCCs. Touching upon the natural gas markets, Mr Simmons felt that the spot LNG market would not be sustainable owing to the cost of extraction and subsequent long term investment within the market itself.

Basil Mavroleon (Charles R. Weber & Co)

drew attention to the specific effects of the supply and demand trends on imports into the US explaining the variable drivers influencing the tanker sector. Mr Mavroleon noted in particular the significant impact of the accelerated single-hull phase-out schedule in Europe, the political uncertainties around the world including Iraq and North Korea, and changes in regional economies such as China.