Tanker owners are facing critical decisions amidst the ongoing global energy transition. While various types of tankers remain essential for transporting energy commodities, investment in new vessels has been restrained, despite projections indicating the necessity for such assets in the coming decades.
Rationale Behind Investment Reticence
Despite the persistent demand for tanker transportation, owners are hesitating to invest in new vessels, reflecting caution in light of evolving market dynamics and uncertainties surrounding the energy transition.
Continued Need for Traditional Tankers
With peak oil production anticipated after this decade, the requirement for crude oil, refined products, and petrochemical transportation persists, necessitating the existence of at least one more generation of traditional crude oil tankers.
Shift Towards Alternative Fuel Vessels
The increasing demand for alternative fuels like ammonia and methanol presents opportunities for tanker owners. However, industry decarbonization initiatives and the need for global sustainability will heavily influence the transition to these new cargo types.
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Source: LR
