The Iran deal, should it occur, would be a major positive for oil tankers. Not so much because of more oil on water – The Iranian crude is already making its way in the “phantom “trade carried by rusted quasi wrecked tankers- but because these ”tankers” will disappear and be replaced by efficient ones. Actually, scrapping is gaining momentum as scrap values are close to market resale values. The Bull Papua was sent to scrap for $10 million (it was bought second hand for $12 million eight years ago) and the VLCC NEW INSPIRATION should be scrapped soon for $ 27 million, the same price at which a Greek buyer acquired it in 2018. The supply side of tankers is on its way to shrink, and we oil demand recovery, we may finally have the upswing we have expected for years. 2021 was one of the historical bad years for tanker day rates… DHT, EURONAV and FRONTLINE look with TEEKAY as the usual suspects to be owning.
Largely unnoticed by the market was the SHELL/GTT agreement for a Hydrogen carrier. GTT has mastered for 50 years the cryogenic separation membrane technology and is ready to apply it to Hydrogen shipping, a very promising business segment. Together with its acquisition of Hydrogen H2 from Areva two years ago at less than 1 times sales (ITM POWER is still on 400 times….) to create ELOGEN in green hydrogen, this new ventore is a great step forward for both SHELL and GTT in the Net Zero business.