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Wednesday, October 17, 2018

INTERTANKO focuses on Russian oil and tankers in St. Petersburg

INTERTANKO’s Research & Project Manager,Erik Ranheim, focused on Russian oil and tankers at this week’s C5 conference on Russian Shipping in St. Petersburg. 


He emphasized that Russia has become the largest oil exporter in the world and has been the fastest growing oil producer this decade. The Former Soviet Union (FSU) as a whole has more than doubled its oil production over the last 10 years to almost 9m barrels a day (mbd). The FSU had supplied some 55% of the increase in oil demand since the year 2000. He said that there are many challenges related to oil exports from this area, such as navigation through narrow waters in the Turkish and Danish straits, and also harsh ice and weather conditions.


Because most Russian oil is exported to Europe over relatively short distances, Russian oil exports are not so important to the tanker market as their large volumes might indicate. Russia supplies some 35% of Europe’s crude oil imports which total some 13.1 mbd. Lately Russia’s exports of oil products have also increased – but at the expense of its crude oil exports.


A major question today is whether Russian oil production is stagnating. There are new projects being developed and one of the major players, Rosneft, expects its own production to increase from 2.02 to 2.23 mbd in 2008, and then then on up to 2.6 mbd in 2010, 3.2 mbd in 2015, and 3.4 mbd by 2020


Ranheim also talked about the international Russian tanker fleet, which is very modern - the average age of the tanker fleets of Novoship and Sovcomflot is less than 7 years.


The Russians themselves spoke up to complain about lack of investment in Russian shipping and port infrastructure. International Russian tanker companies today mainly fly international flags, despite that Russia has started up an International Registry. It was said that this Registry has attracted only old ships so far. Russia’s International Registry is  based on registration in some 12 different ports and registration might be too slow and bureaucratic.


To view the full presentation click here


Contact: Erik Ranheim