leading the way; making a difference the tanker industry energy round-table forum québec 15 june...
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Leading the way; making a difference 55% of the crude oil is transported by sea Adding petroleum products, 75% of oil consumed is transported by seaTRANSCRIPT
Leading the way; making a difference
The Tanker Industry
Energy round-table forum Québec 15 June 2015
Erik RanheimSenior Manager IT/Web, Research and Project Section
Leading the way; making a difference
International Association of Independent Tanker Owners
Owners210 Members frommore than 40 countries 230 Associate Members• Spokesman• Advisor• Forum
INTERTANKO is present where decisions ontankers are taken
45 year anniversary 2015
Leading the way; making a difference
55% of the crude oil is transported by sea
Adding petroleum products, 75% of oil consumed is transported by sea
Leading the way; making a difference
An expanding industry
Chem;
102
Chem/oil; 2,326
Crude; 2,253
Product 1,143 LPG; 401 LNG
; 410
Type of tankers> 10,000 dwt
In addition there are 8,800 tankers, all types and sizes below 10,0000 dwtTankers build on more than 100 years of experience
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
0
900
1,800
2,700
3,600
4,500
Crude and Product Tankers
Dwt
No.
no tankers
Source: SSY
82% independent owners12% Government owned6% Oil company/traders owned
74% in the single voyage spot market
Leading the way; making a difference
A costefficient industry
USA Japan UK Canada0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Long haul freight rates
Refining/Marketing profit
Oil price
Tax
Cost elements making up the gasoline price:
Dollar per gallon Gasoline price at the pump June 2015
17%
50%
Tax: 65%
33%
Leading the way; making a difference
The Tanker Industry is regulated by a comprehensive International Regulatory Regime
Safety and pollution prevention in shippingis regulated by UN’s International Maritime Organisation through comprehensive Conventions developed over 60 years:• MARPOL• SOLAS• STCW +• COLREG• Load line• Search and rescue• ISPS• etc
Shipping is also regulated by ILO, the Law of the Sea and other national and international regulations
Leading the way; making a difference
The tanker Industry is Subject to a Comprehensive Control Regime
Flag States• Statutory
Classification Societies DnV GL / ABS / LR + +..• Class standards / statutory / commercial controls
Port Statescontrol
Insurance - Hull - P&I
Charterers• Vettingzero tolerance for accidents
Leading the way; making a difference
The tanker industry has a high degree of safety
Source: ITOPF/Fearnleys/Lloyd’s Information Unit *2010s is a projection based on 5 years
99.9797% ofof the oil
transported safely
99.99992% ofof the oil
transported safely
000 ts oil spilt per decade bn tonne miles transported per decade
1970s 1980s 1990s 2000s 2010s*
-700.0
-50.0
600.0
1,250.0
1,900.0
2,550.0
3,200.0
0
30,000
60,000
90,000
120,000
150,000
1000 ts spilled
bn tonnes miles transported
- 63% -3% -82% -70%%
Leading the way; making a difference
Large tanker accidents
Include fatalities on other ships types in connections with collisions
197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014
0
130,000
260,000
390,000
520,000
650,000
Leading the way; making a difference
Source: INTERTANKO, based on incident reports from LMIU and pollution figures from ITOPF
Tanker incidents - all tanker types and sizesNumber incidents 1,000 ts oil spilt
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
210
420
630
840
1050
0
120
240
360
480
600
Miscellaneous Fire/Expl Hull & Machinery
Grounded Coll/Contact Oil pollution
Information is based on reports from Lloyd's Mar-itime Information Unit and The International Tanker Owners Pollution Federation
INTERTANKO records each tanker incident reported
Leading the way; making a difference
The tanker industry pay up 3rd party Insurance and Liability
P&I Club
The Group of P&I Clubs
The Group of P&I Club re-insurance The Fund Convention
goes beyond shipowner's liability limited obligations $750
m SDR. Will have to pay whole amount if not shipowner
liable or owner cannot pay Conventions under auspice of IMO
The Civil Liability Convention(CLC)
places strict liability for damage from oil pollution on the shipowner
Shipowner
Pollution victims Cargo owners
Leading the way; making a difference
Other Main Challenges for Tankers
Invasive spices – ballast water management Cleaner air, sulphur, nitrogen, soot,…• Annex VI implemented/date
uncertain 1920/25 GHG reduction
• Existing ships improved procedure, new ships more energy efficient
Cleaner seas• Acidification of oceans• Anti-fouling Systems• Garbage, other pollutions
into the sea
Leading the way; making a difference
A mature but expanding industry developed over more that 100 years Subject to comprehensive international regulations worked out by IMO over some 60 years Controlled by authorities, class and charterers Subject to strict liability for oil pollution Working for continuous improvement
The tanker industry
The International Association of Independent Tanker Owners
Summing up