The domestic tanker industry in the United States is finding support from the boost in the nation’s crude oil production. After falling to 5 million b/d in 2008, the lowest level since 1946, US crude oil production has climbed sharply to over 7 million b/d and has held steady above this level since the end of 2012. One of the most significant contributors to the rise in US crude oil production has been the employment of fracking technology in North Dakota’s Bakken shale formation.
McQuilling Services continues to hold a contrarian view of the positive sentiment that surrounds the clean tanker market and robust MR2 ordering. In an effort to validate our opinion, we compiled the clean product trade data that was used for McQuilling Services Tanker Market Outlook this year. We arranged the 225 trades (15 x 15 regions) in descending order from the longest to shortest distances, classifying the top 113 trades as long haul trades and the bottom 112 as short haul trades. We calculated the required number of vessels for all 225 trades for one way and round trip voyages based on a sailing speed of 13 knots and 8 port days, average deadweight tonnage and historical capacity utilization.