Newbuild Crude Tankers Rise in Popularity

Low shipbuilding prices and the North American energy boom are leading ship operators and investors to finance billions of dollars into building crude tankers, according to IMDO’s Weekly Market review.

New drilling and extraction technology enabling the shale oil and gas boom has triggered plans for LNG projects, led Canada to boost crude exports and historically, led the US to consider lifting their long-standing crude oil export ban.

Removing the ban would be controversial and far off, however the willingness of the US government to debate such an idea has led shipping executives to try and position themselves to take advantage.

Used tanker prices have risen by about 15% since November, after four years of falling prices, and many operators are considering newbuilds.

Indeed prices of newbuild (Very Large Crude Carriers) VLCCs have risen 10% since mid-2013 and are now in excess of $100m. Despite this, orders for new VLCCs, jumped from just three in 2011 to 47 last year, with 18 ordered during the first quarter this year.

One Greek owner who asked not to be named commented, “We are looking into buying three new VLCCs on the assumption that the US will reverse its crude oil ban…It is a huge gamble, but I’ve been in the tanker business for 30 years and never seen so much movement on this issue.”

IMDO, June 19, 2014

Share this article

Follow World Maritime News

In Depth>

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >

CEDA Dredging Days 2019

CEDA Dredging Days programme will follow its successful format of contributed peer-reviewed…

read more >

Offshore Wind Europe 2019

#OWEU19 is a meeting place for governments, developers and suppliers to grow the confidence in wind power. Perfect to grow your business by securing new customers, meeting officials and industry heads.

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >