View non-flash version
MARKET REPORT Hie Outlook for Oil Shipping to MOO Rising oil production, increased use ofFPSOs drive shuttle tanker demand A combination of new discoveries, cost reductions, improved technol- ogy and fast track development solutions such as Floating Production Storage and Offloading (FPSO) have extended the com- mercial life of the North Sea as an oil producing area. The North Sea, consequently, continues to defy expectations with spectacular growth in oil produc- tion, and predictions forecast a boom to the end of the decade. In its latest report, The North Sea Tanker Market: The Outlook for Oil Shipping to 2000, Drewry Shipping Consultants looks at how higher North Sea output has affected oil shipping, and examines the implications for the tanker market. Drewry expects that shuttle tankers will be carrying 64 percent more North Sea crude in 2000 as compared with 1995 levels, which equates to an extra 1.5 million bar- rels per day. The growing demand for shuttle tankers from offshore loading oil- fields in the North Sea is a result not only of the rising level of oil production, but also of the increas- ing use of FPSO developments, the growing significance of heavy crudes in the North Sea and the close proximity of much of Europe's refining capacity. The main growth areas for off- shore loading will be in the Norwegian Sea, West of Shetland, and the central area of the North Sea. The increased demand in these areas will more than make up for the decline in demand for shuttle tankers from the older, more established fields. To accom- modate the projected increases in demand, the North Sea shuttle tanker fleet will need to expand. Effect On Conventional Tanker Trading Patterns All sectors in the North Sea tanker market have registered spectacular growth in the 1990s in terms of the volume of crude cargo traded. However, the switching of employment of some VLCCs, from long-haul trades out of the Arabian Gulf, to work in the North Sea, has meant that growth in North Sea oil production has not always been translated into significantly higher freight rates for the North Sea's traditional aframax and suezmax tankers. The rising level of oil production has resulted in a commensurate growth in tanker demand in Northwest Europe that has had a knock on the effect of tanker trad- ing patterns worldwide. The previ- ously highly international tanker market is breaking down into a series of regional markets. In particular, North Sea output, coupled with other non-OPEC pro- duction advances, has helped limit the long expected increase in the reliance on OPEC oil. Short and medium haul supplies from the North Sea (along with West Africa and Latin America) have increasingly displaced long haul cargoes from the Arabian Gulf in the European and American markets. Crude cargoes from the Arabian Gulf increasingly go east to Southeast Asia and the Far East, rather than worldwide. This cuts import demand for MOTOR-SERVICES HU60 STAMP, INC. AUTHORIZED DISTRIBUTORS & SERVICE CENTER . DISTRIBUTOR & SERVICE CENTER FOR DEUTZ/MWM, AUTHORIZED SERVICE CENTER FOR MaK WITH FULL SPARE PARTS INVENTORY AND AUTHORIZED SERVICE FOR G M T & SKL . AUTHORIZED MAN B&W AND ALPHA DIESEL REPAIR FACILITY WITH FACTORY EXCHANGE COMPONENTS (VALVE CAGES, VALVE STEMS, PISTON CROWN , ETC ) EX OUR STOCK (USA). • AUTHORIZED TURBOCHARGER REPAIR AND SPARE PARTS FACILITY FOR MAN B&W DESIGN, NAPIER AND HOLSET/BANNEWITZ FOR REBLAD1NG, DYNAMIC BALANCING & RETROFITS . WOODWARD GOVERNORS & REGULATEURS EUROPA, FULL REPAIR FACILITY WITH STATE- OF-THE-ART 5 HP DIGITIAL ELECTRONIC TESTSTAND, EXTENSIVE SPARE PARTS INVENTORY & EXCHANGE GOVERNORS. FIELD SERVICE FOR DIGITAL CONTROLS & LOAD SHARING SYSTEMS , LINE BORING OF BEDPLATES AND DISTORTED MAIN BEARING SADDLES WITH OUR OPTICAL ADJUSTEMENT EQUIPMENT AND THE MOBILE UNIT IS AVAILABLE FOR ALL MAJOR SIZES . LASER ALIGNMENT AND RECHOCKING OF ENGINES AND FOUNDATIONS WITH 'EPOCAST 36' . FULL RANGE OF MACHINING IN OUR FACILITY OR ON BOARD WITH OUR LATEST EQUIPMEN T, FROM GRINDING OF LANDING SURFACES TO IN SITUE MACHINING OF LINER O-RING AREAS OUR 24 HOUR SERVICE HOT-LINE 1 - 800 - 622 6747 (MSHS) 3190 S.W. 4TH AVENUE - FORT LAUDERDALE, FLORIDA 33315 - PHONE (954) 763 3660 - TELEFAX (954) 763-2872 Circle 267 on Reader Service Card Maritime Reporter/Engineering News Circle 307 on Reader Service Card Tough Fender Products Save You Money! Ultra Poly®'s Ultra Fend®and Poly Fend®custom-sized fendering systems provide superior replacements for hardwood fendering. • Engineers report NO maintenance or repair costs • Virtually unbreakable • Available in high visibility colors .Ezsr iiiirapoiy Manufacturers of High-Impact UHMW 1 -800-USA-UHMW 1-800-872-8469 FAX: (206)272-1457 INTERNET http://www.marinenetwork.com/pnw/ultrapoly 145th St. Bridge, New York City A/p/ia [ PROPULSION SYSTEMS ^DIESEL ENGINES MADE IN GERMANY <& GMT
