World tanker industry maintains momentum from Persian Gulf war

Journal Article · Mon Jun 10 04:00:00 EDT 1991 · Oil and Gas Journal; (United States)

OSTI ID:6127537

The world tanker industry has managed to maintain the momentum generated during the Persian Gulf War. Freight rates for large vessels have regained the high levels seen during the first 2 months of this year, while the expected postwar decline in use of tankers has not materialized. The health of the tanker industry is linked closely with the volume of long haul crude oil from the Middle East, a spot charter from the gulf to Europe, an owner would only break even on the cost of building and operating a new tanker to the highest environmental standards. Owners currently can expect spot rates of about $40,000/day, excellent by the standards of the late 1980s and early 1990s but still below the level needed to justify new buildings. And there are many in the industry who think $40,000/day will be just a happy memory later in the year. Owners are facing pressure for major changes in the industry. Governments and the public want better operating standards and new environmentally sound tankers to reduce the risk of oil spills. At the same time, the industry has to learn to live with repercussion in the 1990 Oil Pollution Act in the U.S., which has opened the way for unlimited liability against tanker owners involved in spills off the U.S. The search also is on for improved profits to make investments required by the changing world of seaborne oil transportation.

• OSTI ID: 6127537
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 89:23; ISSN OIGJA; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
022000* -- Petroleum-- Transport
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MARITIME TRANSPORT
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PETROLEUM INDUSTRY
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