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Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 457095  
Subject: More route changes Date: 4/25/2013 11:46 PM
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I was going to use Qaz's line, "I know a little ...", but then realized if I did try to
use it, I would be contradicting myself. Some of the new events, I'm still very much in the dark.
Okay, so I think I might have mentioned in one or more prior threads that increasing US energy
production is having an impact on certain categories of tankers, in particular the largest
crude carrying tankers- the Very Large Crude Carriers, or VLCCs. So, it seems logical that
if the US is producing more crude internally, then crude imports would drop.

During 1Q13, the class specific disparity grew further; US-delivered VLCC cargo declined
44.6%, y/y, while the decline for Suezmaxes and Aframaxes came in at 7.8% and 2.3%, respectively.


That part is somewhat clear.

http://drg.blob.core.windows.net/hellenicshippingnewsbody/pd...

But then I read that refined petroleum imports are also increasing, and I'm puzzled. Why would the
import dynamics be changing on the product side too? And it isn't just the US that is impacted.
Seems that the Australian refineries are also having issues with operational efficiency.
So, while Australia is a net energy exporting country, it too imports both crude oil and
refined petroleum. About 80% of its crude oil is imported, and 50% of its refined fuel is
also imported.

http://www.hellenicshippingnews.com/News.aspx?ElementId=3494...

Who'd a thunk refineries in developing countries would be supplying consumers and customers
in developed countries? Okay, technically Singapore probably qualifies as a developed country.
If both the US and Australia have increased their domestic energy production, it seems
counter-intuitive that refined petroleum imports would also be going up.

Now it begins to make sense why a tanker company like Teekay, that has traditionally focused
on crude oil tankers, has opted to order product tankers. Their most recent deal has a
Teekay subsidiary, Teekay Tankers (TNK), ordering 4 Aframax size tankers + 12 newbuild options


Also, a Teekay subsidiary that focused on the liquid gas sector, Teekay LNG partners (TGP), has
recently formed a partnership with another gas focused entity, Exmar. TGP and Exmar are
collaborating more closely on Liquified Petroleum Gas (LPG) transport.

http://gcaptain.com/teekay-exmar-form-joint-venture/
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