Oil Majors

  • News from BP, the world's largest oil company, that it plans to have "close control" over 50 percent of its tonnage by 2005 may bring a wry smile to more than a few old timers. It was not very long ago at all that oil majors were systematically divesting themselves of vessels that, they said, tied up capital unnecessarily and were not a part of their core business. At the time, they contended that they could rely on others to provide maritime transport more cheaply.

    Has the wheel turned full circle? Last month BP's CFO Byron Grote revealed impressive results - BP's second quarter profit was $3.1 million, up 42 percent year on year while its first half figures, at $6.8 billion, were up 81 percent. But he also affirmed that the company intends to control more of its own tonnage, either by owning or time-chartering it.

    In his speech entitled "Prestige - A Charterer's Reaction" which Captain Noel G. Hart, Manager, BP Shipping (USA) presented at an INTERTANKO meeting in April and was published, in part, in the June 2003 edition of this publication. Hart said: "Some of you would be aware BP is currently in the midst of expanding its fleet - we have nearly a dozen ships delivering this year alone. Have you asked yourselves why we are doing this?

    I will save you the question — we are doing it to be less dependent on a spot market that continues to disappoint — remember the figure I quoted before — only half the ships we could use, we can use. And so our assurance strategy — which was embryonic at the time of the Erika incident, and which matured in the 12 months following, has determined a path for us across a broad range of our marine activities, but one more visible feature was to increase our capacity to move our own cargoes." Hart pointed to some sobering statistics that were used, in part, to formulate the plan: "BP inspects 2,200 tankers/year, utilizes about 1,000 SIRE reports, handles over 25.000 internal vetting enquiries/year and audits about 30 ship owners/year. There are over 12,000 tankers in our data base — we have a potential business interest to charter around 5,000 of those — the others are coasters, or committed into various closed trades not available for spot use and so on, yet we only approve of around 2,500 tankers. Half the fleet that we would want to charter is unacceptable to us. Even with the half that is acceptable, many will still fail an initial inspection." A Look Back Back in the 1960s and early 1970s, oil companies owned a greater proportion of tonnage themselves than at any time since. Then they had another chunk on long-term timecharter, other vessels on medium term deals, and relied on the spot market only for unforeseen requirements.

    Then came the age of the tanker independent and when the tanker market crashed, it was better for oil companies to charter in large volumes of third-party tonnage at loss-making rates than continue to run their own high-cost shipping operations along traditional lines.

    Now, in the wake of a number of highprofile tanker casualties but particularly the Prestige, the strategic risk associated with shipping activities, which are an essential part of any oil major's global logistics chain, is viewed completely different. Deep-pocketed oil companies simply cannot afford to risk overreliance on independent tonnage, particularly in a tight market where goodquality ships are hard to find. Analysts believe that in certain sectors of the tanker market, such circumstances are now inevitable in the light of the faster phase-out of single hulled tonnage in the months ahead. Just look at the scale of the lawsuits bouncing backwards and forwards across the Atlantic between the Spanish Government and the American Bureau of Shipping. No major corporate, forced to take whatever tonnage it can get in a tight market, would want to find itself having to charter tonnage that it knew was marginal. In practice, no oil major probably would, but then that poses a risk to the company's other fields of operation.

  • being a major U.S. oil company, the appointments reflect both the international nature of the Liberian Shipowners' Council members and the mix of oil majors and independent owners

  • Cedex, France E-mail: rm.total-lubmarine@total.com Web: www.lubmarine.com The Company: Total Lubmarine is a global business unit of the oil major Total Group specialized and dedicated to marine lubricants and greases. Providing marine lubricants since 1952, Total Lubmarine is fully integrated

  • U.S. waters to comply with the revised 2013 Vessel General Permit (VGP).   Shell Naturelle S4 Stern Tube Fluid 100 is made with fully saturated ester base oil, as the oil major contends that this offers the best resistance to hydrolysis and oxidation. It is also a non-emulsifying fluid, which allows ship operators

  • by the December sinking of the Erika off the coast of France, achieved a tangible first step last week with the signing of a Ship Safety Charter by oil majors and ship classification firms involved in the French petroleum shipping industry. The parties signing the three-page document, including TotalFina

  • While the Offshore Oil & Gas markets continue to push further from shore in ever-deeper waters, the need for proven technology to work more efficiently in increasingly hostile and unfamiliar environments grows in tandem. And while growth in the energy sector continues to energize multiple markets, it is

  • a possible breach of its debt covenants. The group, whose main activity is building and operating floating production and storage platforms (FPSOs) for oil companies, also said on Tuesday that U.S. oil major Exxon Mobil Corp. would keep one of its FPSOs on a long-term lease rather than buying it as

  • Notably, though, and in early March, Louisiana-based Harvey Gulf International Marine LLC, which has more than 50 vessels in its fleet and supplies offshore oil rigs among other services, also filed for Chapter 11 bankruptcy in Houston.Better News Ahead?Separately, Norway-based DOF, an operator of 67 purpose-built

  • we were a little nervous, but, after just one month in operation (it was delivered in March 2013) it’s performing above all expectations.” Norwegian oil major Statoil is also reported to be happy with the innovative approach to engine, fuel and environmental management. The firm has engaged Ocean Response

  • . Frontline also walks the walk. A large, young, double hull fleet, which is a market trend setter is an apt desire for most any company that carries oil from point A to B. Frontline, has sped from zero to 60 at record pace. Hatched in 1996 over frustration stemming from carrying cargo based on oil

  • prosper. On the flip side, the abundance of cheap oil and gas found onshore is starting to have an impact on offshore oil and gas developments, as the oil majors are digesting rapidly rising production and crewing costs and slashing E&P expenditure. Jim McCaul, our long-time editorial sounding board, encapsulates

  • prominent underwriter that offers favorable terms for those firms having to “stack” large numbers of their offshore support fleets. Separately, the same oil majors who spent lavish amounts of money to ramp up for the specter of $115 crude oil now spend similar amounts of sweat equity on negotiating discounted

  • MT Apr-19#60  be 
ancy solutions for offshore oil & gas  clamps, hardware)
    April 2019 - Marine Technology Reporter page: 60

    to the sur- large and growing product line of buoy- buoyancy, framework, instrument face. Signi? cantly, the system can be ancy solutions for offshore oil & gas clamps, hardware and ballast. Systems designed for depths as great as 6000 and technology companies. Though it are customized per the ?

  • MT Apr-19#59  winches with  trial and oil and gas industries. Based)
    April 2019 - Marine Technology Reporter page: 59

    of ers in the marine, construction, indus- Hawboldt Industries Hawboldt is a designer and manufac- rental equipment includes winches with trial and oil and gas industries. Based turer of custom-built Launch and Recov- a variety of cables, mobile A-frames in in New Orleans, La., with locations in ery

  • MT Apr-19#52 ver the past 20 years, great strides have been made  Sea?)
    April 2019 - Marine Technology Reporter page: 52

    ver the past 20 years, great strides have been made Sea? oor geodesy projects are underway across the globe, all in the ability to observe and monitor the worlds’ in pursuit of scienti? c advances that will help us crack the ocean. Just think that less than two decades ago, one code on earthquake and

  • MT Apr-19#47  21
APRILMAYJUNE
Ocean Energy: Oil, Wind & Tidal Underwater)
    April 2019 - Marine Technology Reporter page: 47

    AUVSI XPONENTIAL April 9-11, Southampton, UK Mar 29- Apr 2 Chicago, IL Ad Close: Mar 21 Ad Close: Apr 21 Ad Close: May 21 APRILMAYJUNE Ocean Energy: Oil, Wind & Tidal Underwater Defense Technology Hydrographic Survey: Single & Multibeam Sonar Workclass ROV Navy Research Institutions Underwater Lights

  • MT Apr-19#46 tech delivers cost savings and Waagen’s Test Center)
    April 2019 - Marine Technology Reporter page: 46

    tech delivers cost savings and Waagen’s Test Center attracts A place to grow Along with the 1,100-square-meter testing and training cen- wind power entrepreneurs, ? oating or marine wind power con- ter backed by The Switch — plus researchers, equipment and tinues to grow. Since Equinor’s launch of a

  • MT Apr-19#45  subsea cable players serving oil  clients looking on and)
    April 2019 - Marine Technology Reporter page: 45

    dent Birkeland says. It’s a bold other infrastructure, as well as access to potential future wind statement in Norway, where subsea cable players serving oil clients looking on and a chance to see breakthrough innova- and gas are well-known and well-capitalized. tions ? nd immediate use. Sustainable Energy

  • MT Apr-19#44  subsea operations in offshore oil and gas.    pacity for)
    April 2019 - Marine Technology Reporter page: 44

    oating marine wind installations — as ef? cient as surface have tested a prototype and are now building a pilot with ca- and subsea operations in offshore oil and gas. pacity for 500 (metric tons),” Unitech Subsea Systems CEO, The Norwegian start-up program features The Sustainable Gunnar Birkeland, tells

  • MT Apr-19#41  and experi-
ence of offshore oil and gas (risers, umbilical)
    April 2019 - Marine Technology Reporter page: 41

    slurry. Another pipe adjoining the lift pipe returns seawater back to the ocean. So, deepsea mining combines the tech and experi- ence of offshore oil and gas (risers, umbilical, surveys and “drones”) with the experience of dredging; nearshore dia- mond and gold mining and the land-based mining industry

  • MT Apr-19#39 waii, underwater mining tools target the whole gamut of)
    April 2019 - Marine Technology Reporter page: 39

    waii, underwater mining tools target the whole gamut of min- of major offshore acreage awards. Deepsea miner, Ocean ing support tasks. Minerals, says REEs are “17 chemically similar metals con- sisting of the 15 elements known as the lanthanides plus yt- High-stakes ops trium and scandium” and they’re of

  • MT Apr-19#38  pipeline inspection work for oil company 
awareness systems”)
    April 2019 - Marine Technology Reporter page: 38

    just acquired a HUGIN AUV from Kongsberg Mar- In all, INESC TEC developed the “perception, navigation and itime after doing pipeline inspection work for oil company awareness systems” for the mining vehicle and EVA robot (to- Equinor. In a press release, the Singapore-based out? t said gether the same

  • MT Apr-19#32  services. When 
at offshore oil and gas and renewables)
    April 2019 - Marine Technology Reporter page: 32

    . speed and payload. The company’s vision is for its HAUVs to operate in? eld Modus’ background is in subsea trenching services. When at offshore oil and gas and renewables sites, including wind the company was looking to invest in new technology, it felt farms, independent of service vessels. This

  • MT Apr-19#28  and 
The customer base in oil and gas has sent clear)
    April 2019 - Marine Technology Reporter page: 28

    are pressing to enable vehicle delivery to site ef? ciently and safely. ahead, laser focused on innovating new business models and The customer base in oil and gas has sent clear signals to technology to truly ful? ll customer needs. Image: Houston Mechatronics Image: Houston Mechatronics April 2019 28

  • MT Apr-19#26  on topside fa-
outside of oil and gas. Businesses like)
    April 2019 - Marine Technology Reporter page: 26

    robotics enable. disruptive business models in the commercial service sector In virtual residency, vehicles will be stowed on topside fa- outside of oil and gas. Businesses like Uber, AirBnB, Alibaba cilities scattered around ocean hotspots or stowed subsea in and Amazon have all transformed our personal

  • MT Apr-19#25  hard to change.  When the oil and  spond with innovation)
    April 2019 - Marine Technology Reporter page: 25

    , in turn, has This demand from the customer base resulted in business models which are has forced service companies to re- very hard to change. When the oil and spond with innovation. The response: gas downturn began, very few com- Resident sea? oor technology (Resi- panies revisited the balance of their

  • MT Apr-19#24  effects of the ‘downturn’ in oil  very useful) vessel ?)
    April 2019 - Marine Technology Reporter page: 24

    ser- Wwe have in the industry? vice companies to lower their reliance on the ubiquitous (and For the past few years the effects of the ‘downturn’ in oil very useful) vessel ? eet, because vessels are expensive. and gas have dominated the industry’s technology roadmap. Most subsea businesses are hamstrung

  • MT Apr-19#23  oceanic epidemics that are im-
Oil & Gas Defence
pacting our)
    April 2019 - Marine Technology Reporter page: 23

    Press will release Harvell’s new book, “Ocean Outbreak: Confronting the Rising Tide of Marine Disease,” on the oceanic epidemics that are im- Oil & Gas Defence pacting our food chain and proposing solutions to slow a looming global en- vironmental disaster. +33 (0)297 898 580 http://rtsys.eu/en www

  • MT Apr-19#22 Case Study Science
Sea Star Population in Danger
The)
    April 2019 - Marine Technology Reporter page: 22

    Case Study Science Sea Star Population in Danger The combination of ocean warming have stayed so low in the past three est ocean, and it is not recovering in the and an infectious wasting disease has years, we consider them endangered in same way experienced by the intertidal devastated populations of

  • MT Apr-19#17 of the bridge of?  cially opened to westbound traf?  c in)
    April 2019 - Marine Technology Reporter page: 17

    of the bridge of? cially opened to westbound traf? c in Au- The project scope required driving more than 1,000 cylindri- gust 2017 and, a few weeks later, temporarily began carry- cal piles into the Hudson riverbed to create 41 pillars to hold ing eastbound traf? c until the eastbound span was completed

  • MT Apr-19#4  year recovery of the offshore oil and gas industry. Make)
    April 2019 - Marine Technology Reporter page: 4

    , this industry is on solid footing and on the rise again following the trauthwein@marinelink.com collapse and protracted 4+ year recovery of the offshore oil and gas industry. Make no mistake, the offshore business, a critical piece in the pace, direction and development of Contributing Writers Justin Manley

  • MT May-19#62  21
APRILMAYJUNE
Ocean Energy: Oil, Wind & Tidal Underwater)
    May 2019 - Marine Technology Reporter page: 62

    AUVSI XPONENTIAL April 9-11, Southampton, UK Mar 29- Apr 2 Chicago, IL Ad Close: Mar 21 Ad Close: Apr 21 Ad Close: May 21 APRILMAYJUNE Ocean Energy: Oil, Wind & Tidal Underwater Defense Technology Hydrographic Survey: Single & Multibeam Sonar Workclass ROV Navy Research Institutions Underwater Lights

  • MT May-19#43 Image: SurfWEC
team relies on a neural network.  knows)
    May 2019 - Marine Technology Reporter page: 43

    Image: SurfWEC team relies on a neural network. knows that the path from inventor’s workbench to utility level “Neural networks are a way to respond to things that are not performance is neither straight, short or cheap. The SurfWEC clearly, easily de? ned,” said van Hemmen. “If I have a perfect

  • MT May-19#42 Image: SurfWEC
criteria speci?  cally required to bring)
    May 2019 - Marine Technology Reporter page: 42

    Image: SurfWEC criteria speci? cally required to bring wave energy conversion to the utility level,” said Raftery. “There have been four major fail- “I’m convinced that we can get it ures in the industry that really put investors off. The sinking of the to work, but this is the one tech- Advanced

  • MT May-19#41 Image: SurfWEC
“There have been four major failures in)
    May 2019 - Marine Technology Reporter page: 41

    Image: SurfWEC “There have been four major failures in the industry that really put investors off. The sinking of the Advanced Research Technologies/Wavegen “Osprey” in 1995, the sinking of the Finavera “Aquabuoy” in 2007, the sinking of the Trident “DECM” in 2009, and the recent sinking of the Wello

  • MT May-19#36  the expansion of berths, fuel oil tanks and stor- Development)
    May 2019 - Marine Technology Reporter page: 36

    an intermediate section was identi? ed, in The agreement between Brazil and France for the Subsea order to allow the expansion of berths, fuel oil tanks and stor- Development Program (PROSUB) has three basic premises: age spaces, thus increasing the original capacity of our sub- technology transfer