1. INTERTANKO and the tanker Industry WMU Oslo 24 September 2007 Erik.Ranheim@INTERTANKO.com Manager Research and Projects

2. International Association of Independent Tanker Owners A non-governmental organization established in Oslo in 1970 to speak authoritatively and proactively on behalf of tanker operators at international, regional, national and local level Membership 260 Members 40+ countries 2,650+ tankers 220 million dwt 75% of independent tanker fleet 300 Associate Members 2. INTERTANKO

3. MISSION “Provide leadership to the Tanker Industry in serving the world with safe, environmentally sound and efficient seaborne transportation of oil, gas and chemical products.” VISION for the TANKER INDUSTRY “A responsible, sustainable and respected Tanker Industry, committed to continuous improvement and constructively influencing its future.” 2. INTERTANKO

4. Member Company Regional ManagerIssue Manager Member Company INTERTANKO Position Issue Developing an INTERTANKO Position 2. INTERTANKO

5. INTERTANKO represents and promotes the interests of the responsible tanker owners worldwide and provides members with advice, information and support on technical, operational, documentary, port and other issues and is a meeting place and discussion forum for tanker owners INTERTANKO Services 25 Secretariat Oslo, London, Washington & Singapore 14 Committee’s and 4 Regional Panels 50+ Work Items on the Agenda

6. 2. INTERTANKO advice on charter party questions advice on international regulations market information –statistics –world economy –oil market –tanker and chemical fleet –casualties and oil spills guidance and information publications –50% off the purchase price of publications Freight and Demurrage Information Pool –a database of charterers' records on settlement of freight and demurrage –receive assistance in securing payment of outstanding demurrage claims INTERTANKO Services: Using INTERTANKO

7. Air emission Human element Criminalisation of seafarer Liability for oil pollution Competition rules International regulations INTERTANKO’s most important issues

8. Liaison INTERCARGO International Chamber of Shipping (ICS) BIMCO Oil Companies International Marine forum (OCIMF) Individual oil companies Ports Associations (reception facilities, terminal vetting) Pilots PSC (MoUs) Local, National, Regional and International regulatory bodies 2. INTERTANKO Round Table of International Shipping Associations (RTisa)

9. 1.Requirements Independent owners Entry of all tankers into Membership IACS Classification Societies The International Group P&I Transparency of ownership Limited detentions in ports Approved by the council 2.Best Practices Budget Resources Breaches of MARPOL Reporting Deficiencies to Class Leading Industry Performance IMO Pilotage Recommendations for Danish Waters Guide for Correct Entries in the Oil record book Right Whale Avoidance Best Practice - Cadet Berths IMO Guidelines for Lifeboat Safety Incident Transparency Ballast Water Management Plan Emergency Response for Damage Stability INTERTANKO Membership criteria

10. The State of the tanker Industry

11. High safety Low pollution Low age End of high earnings

12. Tanker incidents by cause 1978-1Q07 Number incidents Source: Based on incident reports from Lloyd’s Maritime Information Service Oil pollution – 1000 ts

13. Tanker incidents by cause 2006 Source: Based on incident reports from Informa

14. Tanker accidents and trade Source: ITOPF/Fearnleys 1000 ts spilt Bn tonne-miles trade

15. Pollution rate 1000 ts spilt per bn tonne miles carried Source: ITOÅF/Fearnleys 1000 ts spilt bntonne-m

16. Accidental pollution from tankers largest accidents Source: ITOPF 1000 ts spilt

17. Accidental pollution from tankers largest accidents and age Source: Informa/INTERTANKO Number incidentsAverage age

18. Total losses, tankers and bulkers Source: Clarkson Number

19. World CO 2 emission, energy use and population - indices Source: CO 2 emission: US Energy Information Administration Energy use: BP Review Population: UN CO 2 emission increase stronger than energy and population increase due to relatively stronger increase in coal consumption Index

20. World CO 2 emission

21. Tanker Market

22. Oil price and VLCC freight rates $ per day freight rate $ per barrel oil price

23. Oil price and VLCC freight rates $ per day freight rate $ per barrel oil price

24. VLCC spot and break-even rates $ per day freight rate

25. VLCC break-even rates $ per day freight rate

26. Source: INTERTANKO Oil price and freight rate $/barrel

27. Source: INTERTANKO Gasoline price at the pump $ per litre

28. mbd Source: IEA World oil demand - mbd

29. litres Source: BP Review Oil consumption per capita

30. mbd Oil consumption if world populations consumed oil as Americans

31. Seaborne oil trade and Middle East oil production mbd Source: Fearnleys/IEA '000 bil tm

32. Tanker productivity – tonne-miles/dwt Source: Fearnleys/IEA

33. mbd Source: IEA Sources of European oil imports - mbd mbd

34. Source: IEA Sources of US oil imports - mbd

35. Source: IEA Sources of Asian oil imports

36. Source: IEA World oil demand increase - mbd mbd Increase 2008 Rest of world: Other Asia: 0.23 mbd Latin America: 0.14 mbd Africa: 0.11 mbd Europe: 0.26 mbd Others 0.34 mbd Total 1.08 mbd

37. Source: IEA Chinese net oil imports - mbd mbd

38. World oil supply - mbd Source: IEA mbd

39. Tanker Supply

40. Tanker contracting $ bn m dwt VLCC 13. 4 $ bn Suezmax: 5.9 ” Aframax: 8.8 ” Panamax: 2.8 ” Handy: 22.9 ” (43%) Source: INTERTANKO/Clarkson Shipyard Monitor

41. Tanker fleet, orderbook and phase out tankers above 30,000 dwt m dwt 79 m dwt133 m dwt

42. Phase out SH tankers above 30,000 dwt m dwt

43. Tanker fleet double-hull development Source: Clarkson %

44. Tanker deliveries, removals, max phase-out m dwt

45. Tanker fleet development Oil and chemicals m dwt

46. VLCC fleet development Number Source: INTERTANKO m dwt

47. Conclusion High safety performance Strong earnings – until now Strong fleet increase Reduced earnings