Bringing VLCCs to port
Transport costs for US crude exports should fall as facilities are built to handle the largest tankers
US crude exports are already breaking records and new pipeline capacity will bring even more cargoes to sea by the end of this year. How this crude is loaded at the terminals—and the type of tanker it is loaded aboard-is about to change, promising new savings for oil exporters. Today, most US crude shipped to Atlantic Basin buyers is loaded on smaller 750,000-bl Aframax tankers. In contrast, almost all US crude sent to Pacific Basin buyers is transported using very large crude carriers (VLCCs) that can hold 2mn barrels each. Due to insufficient channel depth along the US Gulf Coast, almost all VLCCs must be reverse lightered: cargoes are initially loaded on Aframaxes, which then conduct ship
Also in this section
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth
