Day rates for vessels that move oil and refined products between U.S. ports rose after the U.S. banned Russian oil and product imports this year, Kinder Morgan Inc. CEO Steven Kean said on June 1.
Pipeline and terminal operator Kinder Morgan, which owns about 16 Jones Act vessels, saw a "meaningful" uptick in demand spurred by the U.S. ban following Russia's invasion of Ukraine, Kean said at the Bernstein Annual Strategic Decisions conference.
The Jones Act requires goods moved between U.S. ports to be carried by ships built domestically and staffed by U.S. crews. Kinder Morgan vessels carry crude oil, refined products and fuel blend stocks to the mid-Atlantic and northeast ports.
Daily chartering rates were moving toward the bottom end of pre-pandemic rates of $60,000 to $65,000, Kean added.
The U.S. imported 672,000 bbl/d of Russian crude and refined products last year, according to Energy Information Agency data. Of that, 30%, or 199,000 bpd, was crude, while 473,000 bbl/d was refined products.
Recommended Reading
Haynesville’s Harsh Drilling Conditions Forge Tougher Tech
2024-04-10 - The Haynesville Shale’s high temperatures and tough rock have caused drillers to evolve, advancing technology that benefits the rest of the industry, experts said.
CERAWeek: Large Language Models Fuel Industry-wide Productivity
2024-03-21 - AI experts promote the generative advantage of using AI to handle busywork while people focus on innovations.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.
Betting on the Future: Chevron Technology Ventures’ Investment Strategy
2024-04-09 - After a quarter century, Chevron Technology Ventures seeks both incremental and breakthrough technologies with its early-stage investment program.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.