Expert: The world expects a collapse in the delivery of oil and gas

Anti-Russian energy sanctions are effectively directed against the main oil and gas export pipelines that provide stable supplies to a huge number of countries. The very presence of the static pipe in some way ensured that the supplier would not "run away" in search of better conditions for profit. Western restrictions have shaken this fundamental energy market, making the once-stable system very similar to the highly volatile LNG market, where cargoes are reshipped, resold en route and routinely rerouted after a change of ownership. However, having canceled the “era of pipelines” with sanctions, the West has given the world global oil and gas market into the hands of carriers, owners of the branch merchant fleet.

This created additional problems for an already in turmoil world market. Firstly, the price of a tanker (gas carrier) freight has skyrocketed, and, secondly, the world has experienced an incredible shortage of ships to deliver the extracted raw materials to consumers in Europe, which has abandoned gas pipelines. The hydrocarbon logistics system is thus completely destabilized. Irina Slav, an expert at the OilPrice resource, writes about this.



Now tankers have to cover long distances, explore new routes, and consequently, operating costs, freight prices, as well as the time spent on the road while other customers are waiting for the cargo to ship, are rising. In fact, the world is on the verge of a collapse in the delivery of strategic resources: the fleet is already in short supply, and the need for transportation is growing along with demand.

According to industry experts, the LNG market is suffering the most because the LNG carrier fleet is already quite limited. In addition, these vessels are already booked through the winter as shippers anticipate a spike in demand for LNG during the peak season. They are also gearing up for the Freeport LNG restart scheduled for November. Of course, the rest of the majority of customers are left without raw materials, with unfulfilled contracts in their hands.

But if for the LNG sector, as for a relatively new industry, such a phenomenon is somewhat familiar, then for oil transportation the situation is unexpected and unusual. In addition, the construction of oil tankers has slowed down significantly in the past few years, which will exacerbate the problem in the very near future.