Industry Rundown: Latest news from across the industry
Industry Rundown is a weekly post curated from the latest developments in the oil and gas, power generation, shipbuilding, marine, and general steel industries.
Oil, Gas and Petrochemicals
Petronas Suriname E&P, a subsidiary of the Malaysian energy company Petronas, has announced the discovery of oil at the Roystonea-1 exploration well in Block 52 offshore Suriname. The well was drilled at a water depth of 904m and reached a total depth of 5,315m, revealing oil-bearing Campanian sandstone reservoirs. Petronas is now evaluating the potential for development and synergies with their previous Sloanea-1 discovery in the same block, demonstrating their commitment to Suriname’s hydrocarbon potential.
The World Bank has warned that if the Israel-Hamas conflict escalates further and leads to a disruption similar to the Arab oil embargo in 1973, oil prices could surge to $157 per barrel. This projection is part of three risk scenarios the World Bank has outlined, and in the event of a “large disruption” comparable to the 1973 Arab oil embargo, it could lead to a 56% to 75% increase in oil prices. In the past, such conflicts have significantly impacted oil prices, but under the World Bank’s baseline estimates, oil prices are expected to average $90 a barrel in the current quarter, with a decrease to an average of $81 per barrel in 2024 if the conflict doesn’t widen.
South Korea successfully conducted its first ship-to-ship LNG bunkering operations for a coal-carrying bulk carrier at the POSCO raw material dock in Gwanyang port. This achievement marks a significant step in implementing LNG bunkering and reducing safety concerns in South Korean ports. The Ministry of Oceans and Fisheries of Korea is actively supporting LNG bunkering operations through discounts and R&D projects to promote safe and efficient bunkering with the aim of establishing Korea as a primary hub for alternative marine fuels.
Steel
Iron ore prices rose for the second consecutive week, with January iron ore futures on the Dalian Commodity Exchange increasing by 6.3% to 924.5 yuan/t ($126.38/t). The surge in prices is attributed to optimism stemming from economic stimulus measures and positive fundamentals in China, the world’s largest consumer of iron ore. However, concerns persist about potential government intervention from Chinese authorities due to soaring prices, and the market faces the risk of lower demand due to potential production controls amid worsening air conditions in northern China.
Power Generation
Asia is projected to see a 3.1% expansion in energy demand in 2024, demonstrating a significant increase from the 1.2% growth reported in 2023, according to an Economist Intelligence report. This growth is expected to be driven by strong demand in Asia, despite concerns about China’s economic outlook. Meanwhile, energy consumption in Europe is set to decline for the third consecutive year due to high energy prices and limited gas supply, while North America and Latin America will experience marginal growth due to soft economic conditions.
Shipbuilding / Marine
Hyundai Glovis, a major vehicle transport operator, has received board authorization to construct the world’s largest car carriers, each with a capacity of 10,800 vehicles. The decision was made while reporting quarterly results and in a filing with the Korean Stock Exchange. The move is part of a $1.84 billion investment plan to build a dozen of these massive vessels, aiming to secure a fleet of LNG dual-fuel propulsion engines to meet environmental regulations and reduce emissions by more than 20% by 2030. The decision comes in response to increased demand in the car transport sector, driven by factors such as port congestion and growth in the Chinese car manufacturing industry.
Steelboso’s 5 Most Searched Materials
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