Shuttle Tanker Demand To Rise In Coming Years

Shuttle Tanker Demand To Rise In Coming Years
Demand for shuttle tankers will grow in the coming years, as produced volumes in need of transport rise to 3.3 billion barrels by 2030.

While international companies must leave Brazil every 90th day to meet local content regulations, Petrobras can operate more efficiently with significantly more trips per vessel than its international competitors.

In Russia, the shuttle tanker market is the same size as the North Sea but is divided into the Arctic Russia and Far East Russia markets. The former is focused on shuttling from Arctic oilfields to Murmansk, with the latter shuttling crude and condensate from the Sakhalin fields to the Asian market.

Due to the relatively lightweight class of Russian shuttle tankers and the fact that they are ice-classed, there tends to be a higher vessel intensity per barrel produced in the region than in other markets.

Looking ahead

According to Rystad, the North Sea will be a crucial driver for increased activity as a new investment spree follows the Norwegian government’s tax regime, introduced in mid-2020, which is aimed at incentivizing sanctioning activity to be filed by the end of 2022.

Brazil has also been vocal about its ambitions to become more energy independent, with many wells to be drilled by 2030. In addition, we see that a growing number of international players are entering the stage in Brazil with their stake in crude oil production.

This trend alone will drive shuttle tanker demand upwards as the vessel intensity per barrel produced is higher than local leader Petrobras.

To contact the author, email bojan.lepic@rigzone.com


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