Tanker Market Could See More Upside Potential in 2H

first_imgzoom Due to rather severe summer doldrums, earnings across all tanker sectors dropped to levels not seen since September 2014. Tanker rates typically stage a recovery going into the northern hemisphere winter months, however, according to Poten & Partners, there are concerns that this might not happen to the same extent this year.In its latest tanker opinion, Poten & Partners revealed the main drivers of the market that could shape the rate environment in the second half of 2016.Fleet growth in the first half of this year has contributed to the pressure on rates. In the first half of 2016, 23 VLCCs have been delivered, which is already equivalent to the full-year deliveries for each of 2014 and 2015, while another 37 vessels are scheduled for delivery in the second half of the year. The situation in the other tanker segments is similar, however, the main exception is the MR segment as the inflow of new tonnage has started to slow.Furthermore, only a handful of tankers have been scrapped so far this year and, given the age distribution of the tanker fleet, a significant pickup during the remainder of 2016 is not expected.However, the tanker supply factor that could possibly drive rates higher is increased floating storage as well as tanker demand.The year 2016 started well enough as tanker trades were supported by the re-entry of Iran in the export market as well as growing U.S. crude oil imports, but the second quarter of 2016 witnessed several unforeseen events which reduced oil flows worldwide.Many of the factors that negatively influenced the tanker market are likely to turn around in the second half of the year, Poten & Partners said, adding that, “at this point in the cycle there is obviously a lot more upside potential than downside risk.”Canadian production has been restored, for example, and outsized inventory draws in the U.S. are expected to come to an end as well. There are promising signs coming from Libya, where an agreement has been announced to reopen several export terminals, while U.S. airstrikes may reduce the threat of further oil disruptions.Analysts indicate that an additional 300,000 barrels/day of production and exports is possible in the near term.last_img read more

Inspections Helping to Make Sure Workers are Safe on the Job

first_img “These inspections give us the opportunity to connect face-to-face with employers and workers to make sure they know their responsibilities when it comes to safety,” said Labour and Advanced Education Minister Kelly Regan. The department routinely conducts workplace inspections as part of its efforts to improve workplace safety. Officers have already reached the total number of targeted inspections conducted last year, more than 630 at over 500 workplaces, issuing 763 orders and 1,108 warnings. Occupational Health and Safety officers are making safety a top priority for landscaping workers this summer. Officers conducted unannounced inspections of more than 35 landscaping job sites across the province last week sharing information, raising awareness and checking compliance with workplace safety rules. Highlights of the blitz include: 37 inspections 88 orders issued for infractions including not using required personal protective equipment and lack of first-aid training 51 warnings for concerns like not having the proper first aid kit on sitelast_img read more

Drilling association says industry is on life support

Drilling association says industry is “on life support” The summer of 2016 is not going to be a happy one for those still looking for work in the energy patch.Even though prices have firmed up a little in recent weeks, there is no indication as to when activity in terms of exploration might pick up. The president of the Canadian Association of Oilwell Drilling Contractors says his industry is “on life support” and he’s concerned about the immediate and long term future.“We’ve seen some stabilization in commodity prices, which is good, I think we’re moving in the right direction. But we’re definitely not out of the woods at this point,” says Mark Scholz.Scholz thinks it could be another year before drilling activity picks up, and when it does, service companies are going to have a tough time rebuilding their workforce.“(It’s) going to exacerbate the situation on the upside, which is we’re going to have a very difficult time trying to find people to get back onto the rigs and back to work,” he says.Scholz says rig utilization numbers are hovering around historic lows, many workers who in the past rode out down cycles are now considering getting out of the industry all together. by Posted Jun 25, 2016 11:43 am MDT Last Updated Jun 25, 2016 at 11:45 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email read more