Less than five percent of the global fleet of supertankers is currently used for storing oil as the cost of renting the ships, known as very large crude carriers or VLCCs, is too high to make this profitable, leading operator Frontline said.
Around 20-30 VLCCs, or between 3.1-4.7 percent of the global fleet of 645 ships, is now used for storage, Frontline Management Chief Executive Robert Hvide Macleod told Reuters.
The vessels now used for storage could typically store a combined 40-60 million barrels of oil.
Oil traders who expect crude prices to rise will often buy cargoes and store them on ships, but the cost of renting the vessels has risen sharply this year thanks to rising output from leading producers.
Recommended Reading
Qnergy Tackles Methane Venting Emissions
2024-03-13 - Pneumatic controllers, powered by natural gas, account for a large part of the oil and gas industry’s methane emissions. Compressed air can change that, experts say.
A Different Way to Approach Energy Industry Hiring
2024-02-07 - Modern energy companies have embraced competitive efficiency, cutting-edge innovation and ESG transparency. It is time for modern energy hiring to do the same.
Women in Energy: Here’s to Ms. Flat-Bottomed Paper Bag Inventor
2024-03-10 - A salute to the women of genius, including ‘Ms. Plain English Computer Language Inventor’ and ‘Ms. Parity is Not Conserved in Weak Interaction Discoverer.’
MethaneSAT: EDF’s Eye in the Sky Targets E&P Emissions
2024-03-07 - The Environmental Defense Fund and Harvard University recently launched MethaneSAT, a satellite tracking methane emissions. The project’s primary target: oil and gas operators.
Exclusive: Scepter CEO: Methane Emissions Detection Saves on Cost
2024-04-08 - Methane emissions detection saves on cost and "can pay for itself," Scepter CEO Phillip Father says in this Hart Energy exclusive interview.