Archives for posts with tag: Oil

Oil prices have always been big news for shipping and offshore, and are currently making the headlines. Since early October, crude prices have undergone one of the lengthiest periods of steady decline on record. Whilst the steep drops from the heights of $147/bbl in 2008 and $114/bbl in 2014 were clearly more substantial as a whole, the recent downward trend is certainly noteworthy. So what’s going on?

For the full version of this article, please go to Shipping Intelligence Network.

Offshore is quite a project driven sector in the sense that work at offshore fields drives much of the demand for offshore vessels. But offshore is also project driven in the sense that offshore output growth is linked to field project start-ups. And since 28% of global oil production is offshore, the aggregate of individual offshore start-ups can potentially have significant implications for wider energy market trends…

For the full version of this article, please go to Offshore Intelligence Network.

The Middle East Gulf, which laps the shores of several major OPEC countries, holds 32% of the world’s 60 largest offshore oil fields, some of which have been active for 60 years. But though it is a mature area, in 2018 it is still projected to account for 28% and 34% of global offshore oil and gas production, with output having been supported by a large number of expansion, EOR and redevelopment projects.

For the full version of this article, please go to Offshore Intelligence Network.

The Middle East is a key component of global oil production. In total, it accounts for just under 25m bpd of oil output (or 30m bpd including NGLs), of which nearly a quarter is produced offshore. The Middle East also produces 63.5bn cfd of gas (64% offshore). The majority of Middle Eastern producers are OPEC members, so the group’s decisions have a large impact on production volumes in the region.

For the full version of this article, please go to Shipping Intelligence Network.

As recent history demonstrates, if the global oil supply-demand balance moves from a deficit of supply to a surplus, or vice versa, the effect on oil prices and hence the offshore sector can be far reaching. At present, as 2019 draws nearer, oil demand and supply look to be increasingly finely balanced. However, there are still a range of uncertainties that could significantly shift the current oil supply-demand outlook.

For the full version of this article, please go to Offshore Intelligence Network.

2018 so far has been a year of firming oil prices. Despite continued strong output growth from US shale, the crude price has risen, with Brent even topping $80/bbl, fuelled by political risk: Venezuelan instability, North Korea and sanctions on Iran. Supply outages, plus higher prices muting demand, have hit the tanker market. However, the flip side has been more positive indications (at last) in the offshore sector.

For the full version of this article, please go to Shipping Intelligence Network.

 

Sometimes in shipping, as in life, things come along that nobody really expects. US shale/tight oil production, which was barely on the radar ten years ago, seems to be one of those things. The most recent news, of US crude being unloaded in the Middle East and of output passing 1970s levels, has not come entirely out of the blue. But imagine saying ten years ago that the USA could soon be a net oil exporter…

For the full version of this article, please go to Shipping Intelligence Network.