Archives for posts with tag: Oil

Last week’s Analysis took a long-term view of seaborne trade. This week, we look at the history of global oil demand, a key driver of seaborne trade (crude and products trade totalled 62m bpd last year, 25% of the total in tonnes), offshore oil production (25m bpd), and oil prices. In 2020, the now global spread of Covid-19 is leading to major disruption to oil demand, and the ‘long’ view provides an interesting context.
Shipping Intelligence Network.

Exploration drilling has naturally faced cutbacks since the offshore downturn. As discretionary spending, it typically suffers in weaker markets. Yet, as 2019 began, it seemed like several promising wildcat wells were on the horizon. Some wells have delivered key discoveries, likely to add impetus toward project FIDs. But other high-profile campaigns have disappointed. So, what’s succeeded and what’s failed?

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

One of the most important building blocks of shipping market economics is the concept of the ‘delivered cost’ of a commodity and freight’s part within it. In general, the freight element of the cost of delivering (i.e. selling from the point of origin and shipping to the buyer) of a commodity is only a limited part of the total delivered cost. This has key implications for shipping market behaviour.

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

Environmental concerns are increasingly to the fore in world political economy, with the global energy mix and questions of “peak demand” for different fossil fuels receiving increasing attention as a result. While there is clearly still much uncertainty around this topic, it is worth exploring how shipping continues to develop alongside the changing dynamics of the global energy mix.

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

The offshore sector has seen some impressive gas projects over the last decade, from the development of the vast South Pars/North Field to the start-up of pioneering mega-projects off Australia and the introduction of FLNGs. Accounting for 32% of total gas output, offshore gas is now a key part of the global energy mix. But similar could be said of US shale gas. So how do shale and offshore gas measure up?

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

Powered by ongoing innovation, drilling activity and infrastructure projects, the US energy revolution seems to be continuing apace, with the country likely to become a consistent net crude oil exporter within a few years. But as the recent FID at the 15.6 mtpa Golden Pass LNG plant in Texas suggests, seaborne LNG trade is being significantly affected by the shale boom in the US’s vast interior too…

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

Following the recent oil price plunge, US shale oil production growth has been in the headlines once again, this time as one of the main factors behind the latest slide in oil prices. However, it can still be tricky to appreciate just how significant US shale oil output has now become to global oil markets. Comparing this year’s surge in output against some offshore benchmarks can be helpful.

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

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.