The Petroleum Shipping Industry- Operations and Practices- Vol I

328 Pages·1996·9.74 MB·English

by  Michael D Tusiani

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VOLUME I
AN ontechnical Overview
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VOLUME I
AN ontechnical Overview
Michael D. Tusiani
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Disclaimer
The recommendations, advice, descriptions, and the methods in this book are presented
solely for educational purposes. The author and publisher assume no liability whatsoever
for any loss or damage that results from the use of any of the material in this book. Use
of the material in this book is solely at the risk of the user.
Copyright© 1996 by
PennW ell Corporation
1421 South Sheridan Road
Tulsa, Oklahoma 74112-6600 USA
800.752.9764
+l.918.83l.9421
[email protected]
www.pennwellbooks.com
www.pennwell.com
Director: Mary McGee
Managing Editor: Marla Patterson
Production/Operations Manager: Traci Huntsman
Library of Congress Cataloging-in-Publication Data
Tusiani, Michael D.
The Petroleum Shipping Industry, Volume I:
A Nontechnical Overview / by Michael D. Tusiani
ISBN-lO: 0-87814-671-7
ISBN-13: 978-0-87814-671-0
All rights reserved. No part of this book may be reproduced, stored in a
retrieval system, or transcribed in any form or by any means, electronic or
mechanical, including photocopying and recording, without the prior
written permission of the publisher.
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ACKNOWLEDGMENTS xi
l. OIL: AN INTRODUCTION TO SHIPPING 1
1973 oil crisis and the war on oil 3
Renewable energy sources 3
Nonrenewable energy sources 8
Government energy policies 12
Energy conservation 13
Developing technologies 18
Unconventional sources of oil 18
Severing the link between economic activity and energy 19
The verdict 23
2. WHY TANKER OWNERS? 25
Advantages of chartering 26
Long-term rate setting mechanism 31
Short -term rate setting mechanism 33
Worldscale rates 37
3. PRE-ONASSIS ERA 41
Early history of oil and tankers 41
Paving the way for shipping fortunes 50
4. ONASSIS ERA 55
Siting of oil refineries 55
Growth of an energy-intensive economy 57
The dethroning of "King Coal" 58
The United States becomes energy dependent 59
Economy of scale 62
Crude carrier size classes 64
Fortuitous closing of the Suez Canal 68
The invention of the VLCC 72
Climax of an era 74
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5. POST-ONASSIS ERA (CREATING THE SURPLUS) 83
Aftermath of the crisis 87
Loss of large crude carrier demand in North America and Europe 93
Loss of large crude carrier demand in Europe 99
Gain of large crude carrier demand in the Far East 112
6. POST-ONASSIS ERA (DEALING WITH THE SURPLUS) 117
Scrapping 117
Structural shifts in large crude carrier ownership
between the 1970s and 1990s 124
Organizational structure of tanker-owning companies 134
Strategic alliances 136
7. REFINERY OPERATION AND TANKER DEMAND 139
White products l40
Black products l41
Refiner's margin 142
Refinery operations determines tanker demand 143
Product carrier employment l49
8. TANKER DESIGN AND EMPLOYMENT PATTERNS 163
Tank cleaning 165
Tank coating 167
Product carrier rates and employment patterns 168
Aframax and Suezmax tankers 173
VLCCs 181
9. FORECASTING TANKER RATES 193
Necessity to forecast 194
The logical approach to freight rate forecasting 196
Product carrier demand forecast 197
Elements of a VLCC supply-demand forecast 198
Naive, predestined, and chaotic approaches 212
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10. OIL POLLUTION LIABILITY 219
International conventions 220
Civil liability convention 222
Fund convention 223
TOVALOP and CRISTAL 224
Oil spill claims 225
Oil Pollution Act of 1990 229
Manning standards for foreign flag tankers 241
Double-hull vs. mid-deck design 242
Environmentalists 245
Oil spill prevention is better than cure 247
OPRC convention 248
11. LPG CARRIERS 253
Liquefied petroleum gas 253
Snapshot of the U. S. LPG market 255
Snapshot of the Japanese LPG market 261
World LPG demand 263
Impact of liquefied gas pricing on demand 265
Forecasting seaborne demand 268
LPG shipping costs 269
Netback values affect trading patterns 271
International LPG trading pattern 272
LPG carriers 273
12. LNG CARRIERS 287
Nature of LNG projects 294
Volume II - A Look At Practices And Operations 299
INDEX 303
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