The Caribbean region has come under considerable pressure this year amid political uncertainty and depressed pricing for crude oil. Colombia, Mexico and Venezuela are the major producers in the region and currently account for about 4.6 million b/d of crude and condensate production, which compares to just below 4.9 million b/d in the beginning of 2017. All three nations have struggled from a lack of investment in the upstream sectors, which has been particularly tough since the oil price collapse of 2014.
What is the Tanker Market Outlook?
Dec. 21, 2017
Forecasting the future in most industries is an activity characterized by imprecise results. Nonetheless, firms must develop some basis for planning for their future business activities. This is especially true for those in the tanker shipping industry where marine logistics is a key part of the supply logistics chain and ships represent capital investments.
As Forties Falter, the US Moves In
Dec. 14, 2017
The Forties Pipeline System suffered a major shutdown this week after running at reduced rates since December 6 as a hairline crack in the 450,000 b/d pipeline near Red Moss in Aberdeenshire worsened. The system transports around 40% of UK North Sea oil production, connecting 85 fields to the British mainland and feeding Ineo’s refinery in Grangemouth. The shutdown is expected to last for several weeks as pipeline operator Ineos stated “no less than two weeks” and will likely push the current Forties loading program into the New Year. We note that Brent crude prices found immediate ...
Euro-zone Reaches New Highs
Dec. 12, 2017
Global manufacturing PMI reached its highest level since March 2011 this past month amid increased levels from nearly everywhere. One of the main drivers behind this growth has been the Euro-zone, which according to preliminary data reached its highest level since April 2000 at 60.1. While this data is based on preliminary estimates, we tend to believe the bullish trend as official monthly data from October indicates a surge in manufacturing activity. The manufacturing PMI of the Euro-zone has outpaced that of the US since the beginning of the year as European countries continue to hold the top eight ...
Pioneiro de Libra Leads the Pack
Dec. 8, 2017
The floating, production, storage and offloading unit (FPSO), Pioneiro de Libra, made headlines in November, kicking of the start of the Libra oilfield, the second to be developed in Brazil’s pre-salt area, with about 50,000 b/d of capacity. Additional crude supply is expected from the Lula and Campos fields with a 150,000 b/d FPSO and 30,000 b/d smaller project on track to begin in the first quarter of 2018. These new projects coupled with ramp-ups at the P66 150,000 b/d platform, additional crude production is expected to be 160,000 b ...