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104-479: The refinery is owned and operated by Irving Oil Limited Refining Division, a subsidiary company of Irving Oil . The refinery was built in 1960 as a partnership between Irving Oil and Standard Oil Co. of California (SOCAL, today known as Chevron ) on a 780-acre (320 ha) site in Saint John, New Brunswick . It was built to allow for expansions, the first of which occurred in 1971 and then again in 1974. In 2000,

208-547: A petroleum tanker , is a ship designed for the bulk transport of oil or its products. There are two basic types of oil tankers: crude tankers and product tankers . Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries . Product tankers, generally much smaller, are designed to move refined products from refineries to points near consuming markets. Oil tankers are often classified by their size as well as their occupation. The size classes range from inland or coastal tankers of

312-559: A 40,000  DWT tanker, $ 60.7 million for a 80,000–95,000  DWT , $ 73 million for a 130,000–150,000  DWT , and $ 116 million for 250,000–280,000  DWT tanker. For a concrete example, in 2006, Bonheur subsidiary First Olsen paid $ 76.5 million for Knock Sheen , a 159,899 DWT tanker. The cost of operating the largest tankers, the Very Large Crude Carriers, is currently between $ 10,000 and $ 12,000 per day. Oil tankers generally have from 8 to 12 tanks. Each tank

416-454: A February 2013 meeting between New Brunswick Premier David Alward and Alberta Premier Alison Redford , whereby New Brunswick announced its support for Alberta's call to export landlocked oil sands crude oil bitumen. Getting Alberta crude oil to tidewater , such as the Canaport facility, would provide access to overseas markets using oil tankers whereby the oil would presumably command

520-514: A center of innovation after Edwin Drake had struck oil near Titusville, Pennsylvania . Break-bulk boats and barges were originally used to transport Pennsylvania oil in 40-US-gallon (150 L) wooden barrels. But transport by barrel had several problems. The first problem was weight: they weighed 29 kilograms (64 lb), representing 20% of the total weight of a full barrel. Other problems with barrels were their expense, their tendency to leak, and

624-487: A country, called its flag state . A ship's flag state exercises regulatory control over the vessel and is required to inspect it regularly, certify the ship's equipment and crew, and issue safety and pollution prevention documents. As of 2007, the United States Central Intelligence Agency statistics count 4,295 oil tankers of 1,000 long tons deadweight (DWT) or greater worldwide. Panama

728-470: A few thousand metric tons of deadweight (DWT) to ultra-large crude carriers (ULCCs) of 550,000  DWT . Tankers move approximately 2.0  billion metric tons (2.2 billion short tons ) of oil every year. Second only to pipelines in terms of efficiency, the average cost of transport of crude oil by tanker amounts to only US$ 5 to $ 8 per cubic metre ($ 0.02 to $ 0.03 per US gallon). Some specialized types of oil tankers have evolved. One of these

832-602: A higher price using the international Brent Crude index than it currently does in the western United States using the West Texas Intermediate index. Premier Redford described the Irving Oil refinery as an "anchor ... with the possibility of also exporting some of that crude by tanker." In October 2017, Irving Oil's joint venture partner, TransCanada , announced it will be terminating the Energy East pipeline project as

936-710: A large initial oil spill and subsequent leaks for the next 26 years until it was salvaged by the federal government on July 30, 1996. In the 1990s, Irving Oil also took delivery of several Ultra Large Crude Carriers to deliver crude oil to the Saint John refinery from production locations in Venezuela , the Persian Gulf and the North Sea . Irving Oil operates a large fleet of company-branded tanker trucks to deliver petroleum to retail locations from its Saint John refinery as well as

1040-457: A larger, $ 1.5 billion upgrade was completed. Irving Oil bought out SOCAL's share in the late1980s. In 2000, New Brunswick New Democratic Party leader Elizabeth Weir released documents accessed under the Right to Information Act surrounding the refinery upgrades being put in motion by the government without being completely assessed for its environmental impact, suggesting that the government "ignored

1144-503: A network of gasoline stations, fleet of oil tankers , real estate and other related assets. Irving Oil's Home Office is located in Uptown Saint John and was officially opened in 2019. In April 1924, Kenneth Colin (K.C.) Irving , a then-25-year-old automobile salesman , started what would later become Irving Oil when he opened his first filling station in his hometown of Bouctouche . On October 13, 1925, Irving took control over

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1248-514: A new headquarters at Long Wharf on property owned by the Port of Saint John . In 2015, Irving Oil said it was no longer importing Bakken shale oil , but was taking cheaper crudes from Saudi Arabia . Conservative politician Andrew Scheer stated in November 2017 that Canada should ban the import of oil from Saudi Arabia due to human rights and environmental concerns. In December 2018 Scheer demanded that

1352-431: A provincial property-tax exemption on Irving Oil's Canaport oil terminal, if a review showed it was no longer needed," though progress regarding the matter has yet to have been made, despite calls for the removal of the exemption, including by provincial Green Party leader David Coon , whose campaign for the 2018 election included the removal of the exemption. In March 2023, Service New Brunswick accidentally reverted

1456-586: A restaurant called "The Back Forty"; the most recent is in Enfield, NS with a restaurant called "Crossing" - the original name for the community. Examples of vertical integration within the "Irving Group of Companies" (as the Irving family refers to their holdings) include the acquisition or formation of businesses along the entire chain of production, from the Irving refinery (an Irving Oil subsidiary) and its retail outlets, to

1560-425: A result of changing circumstances around the project. The Refinery is large and moderately complex with 300,000 bpd of capacity. It is Canada's largest. According to the company's submission to Oil and Gas Journal, the units present at the refinery with their capacities (2018) are: The original refinery has been expanded with several new units over the years. A large capital investment program in excess of $ 1 billion

1664-567: A second refinery built south of Saint John adjacent to the Canaport property with its partner BP . Irving and BP claimed "the demand for refined fuel had dropped and the capital costs of a new refinery were higher than expected." Construction had been scheduled to start in 2011 and at its peak, the refinery project was predicted to create 5,000 construction jobs and 1,000 permanent jobs. In February 2011, Fort Reliance Co. Ltd., Irving Oil Ltd.'s parent company, also cancelled its $ 30-million project to build

1768-615: A set of 21 vertical watertight compartments for extra buoyancy . The ship had a length overall of 56 metres (184 ft), a beam of 8.2 metres (27 ft), and a draft of 2.7 metres (9 ft). Unlike later Nobel tankers, the Zoroaster design was built small enough to sail from Sweden to the Caspian by way of the Baltic Sea , Lake Ladoga , Lake Onega , the Rybinsk and Mariinsk Canals and

1872-460: Is located, is closely tied to the Irving Group of Companies, which are mostly headquartered there. In 2000, New Brunswick New Democratic Party leader Elizabeth Weir released documents accessed under the Right to Information Act surrounding $ 1 billion upgrades being put in motion for the oil refinery by the government without being completely assessed for its environmental impact, suggesting that

1976-413: Is more efficient, and better protection in low-impact collisions and grounding. The same report lists the following as some drawbacks to the double-hull design, including higher build costs, greater operating expenses (e.g. higher canal and port tariffs), difficulties in ballast tank ventilation, the fact that ballast tanks need continuous monitoring and maintenance, increased transverse free surface,

2080-454: Is split into two or three independent compartments by fore-and-aft bulkheads. The tanks are numbered with tank one being the forwardmost. Individual compartments are referred to by the tank number and the athwartships position, such as "one port", "three starboard", or "six center". A cofferdam is a small space left open between two bulkheads, to give protection from heat, fire, or collision. Tankers generally have cofferdams forward and aft of

2184-436: Is the naval replenishment oiler , a tanker which can fuel a moving vessel . Combination ore-bulk-oil carriers and permanently moored floating storage units are two other variations on the standard oil tanker design. Oil tankers have been involved in a number of damaging and high-profile oil spills . The technology of oil transportation has evolved alongside the oil industry. Although human use of oil reaches to prehistory,

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2288-535: The Telegraph-Journal , a daily newspaper then-owned by Irving, published an editorial arguing against reconsideration of the tax concessions granted to Irving Oil, without acknowledging the conflict of interest. In 2016, coverage of Saint John Common Council advocacy for higher taxation of Irving Oil's refinery was notably absent from the newspaper, despite extensive coverage in CBC and other news outlets. In 2022, it

2392-471: The Canaport LNG terminal for importing liquefied natural gas (LNG). Irving Oil announced in fall 2006 that it had purchased more land near Canaport and was examining the feasibility of constructing another 300,000-barrel (48,000 m ) refinery in the area to complement the original modernized 1960s-era refinery in the east end of Saint John; the new refinery was to be named the "Eider Rock Refinery" and

2496-544: The Ford dealership business in Saint John . Most modern sources attribute 1924 as being the year Irving Oil was founded; the first incorporation of a company which eventually led to the establishment of Irving Oil was K. C. Irving, Limited , which took place in late November 1926. Afterwards, the incorporation of K. C. Irving Oil and Gas Company, Limited , which was done under Nova Scotia jurisdiction, took place in May 1928. Irving Oil

2600-565: The Kyoto Accord . The resignation of president Ian Whitcomb, in February 2024, amid ongoing leadership changes and a strategic review, suggests potential significant shifts in the future direction of the company. In 1960 the company partnered with Standard Oil Co. of California (SOCAL) to build the Irving Oil Refinery on the east side of Saint John. Irving bought out SOCAL's share of

2704-464: The London Tanker Brokers' Panel (LTBP) . At first, they divided the groups as General Purpose for tankers under 25,000 tons deadweight (DWT); Medium Range for ships between 25,000 and 45,000 DWT and Long Range for the then-enormous ships that were larger than 45,000 DWT. The ships became larger during the 1970s, which prompted rescaling. The system was developed for tax reasons as

2808-571: The Maritimes , Quebec and Newfoundland . They occupy several hectares near important highway interchanges and junctions and have been developed since the 1970s; some of the oldest Big Stops are still in operation with the interiors being evocative of that era. These locations, aside from their convenience store operations, continue to be operated by Irving Oil. In the past decade, Irving Oil has opened several new Big Stops in New Brunswick to reflect

2912-511: The Oppama shipyard by Sumitomo Heavy Industries, Ltd. , named Seawise Giant . This ship was built with a capacity of 564,763  DWT , a length overall of 458.45 metres (1,504.1 ft) and a draft of 24.611 metres (80.74 ft). She had 46 tanks, 31,541 square metres (339,500 sq ft) of deck, and at her full load draft, could not navigate the English Channel . Seawise Giant

3016-1825: The Saint John refinery to rail-side distribution terminals throughout Atlantic Canada and Quebec. The decline in rural branch rail lines operated by Canadian National Railway and CP Rail in the 1980s and 1990s, combined with the increase of 4-lane highway construction, has seen Irving Oil eliminate practically all retail petroleum delivery by rail and the closure of many of its rail-side distribution terminals in favour of newer highway-served terminals or direct deliveries. Irving Oil continues to make extensive use of rail service for wholesale petroleum deliveries from its Saint John refinery. Products such as propane, liquid asphalt and diesel are delivered daily to locations in Quebec and New England via New Brunswick Southern Railway , owned by sister company J.D. Irving Limited as well as by CN. Irving Oil operates bulk furnace oil and propane outlets in most major centres across Atlantic Canada , New England and Quebec as well as select locations in eastern Ontario , almost all of which are supplied from its Saint John refinery. Irving Oil also operates over 900 gas stations in these jurisdictions. In recent decades, smaller stations have been closed and consolidated as newer, larger facilities are constructed - Irving owns many choice real estate locations in communities across northeastern North America, some of which are no longer used for gas retailing, and others being held in speculation of some future need. Older stations are typically franchise operations and still have automobile service and repair shops, which in recent years are branded by Meineke . Most of Irving Oil's corporate owned-and-operated stations also contain convenience stores . These locations operated as simply "Irving" stations until

3120-647: The Standard Oil Company along with several of her sister ships . After Glückauf was lost in 1893 after being grounded in fog, Standard Oil purchased the sister ships. The 1880s also saw the beginnings of the Asian oil trade. The idea that led to moving Russian oil to the Far East via the Suez Canal was the brainchild of two men: importer Marcus Samuel and shipowner/broker Fred Lane. Prior bids to move oil through

3224-533: The V-Plus size designation. With the exception of the pipeline, the tanker is the most cost-effective way to move oil today. Worldwide, tankers carry some 2 billion barrels (3.2 × 10  L) annually, and the cost of transportation by tanker amounts to only US$ 0.02 per gallon at the pump. In 1954, Shell Oil developed the "average freight rate assessment" (AFRA) system which classifies tankers of different sizes. To make it an independent instrument, Shell consulted

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3328-569: The Volga River . The aft and the stern was put together and then dismantled to make room for the mid-section as the Caspian Sea was reached. In 1883, oil tanker design took a large step forward. Working for the Nobel company, British engineer Colonel Henry F. Swan designed a set of three Nobel tankers. Instead of one or two large holds, Swan's design used several holds which spanned the width, or beam, of

3432-644: The Canaport LNG ( liquid natural gas ) terminal; it was apparently negotiated one-on-one with the city's then-mayor Norm McFarlane . The concessions have cost the City of Saint John approximately $ 75 million over ten years, with a potential total loss of over $ 180 million. The tax break was cancelled in December, 2016 at the request of Saint John city council, with unanimous support in the Legislative Assembly. In 2015,

3536-515: The Greek Hellespont Steamship Corporation. Hellespont sold these ships to Overseas Shipholding Group and Euronav in 2004. Each of the sister ships has a capacity of over 441,500  DWT , a length overall of 380.0 metres (1,246.7 ft) and a cargo capacity of 3,166,353 barrels (503,409,900 L). They were the first ULCCs to be double-hulled. To differentiate them from smaller ULCCs, these ships are sometimes given

3640-516: The Irving Refinery derailed in Plaster Rock . This derailment caused explosions and fireballs and forced 150 people to evacuate their homes but did not cause any injuries. Irving Oil Irving Oil Ltd. is a Canadian privately-owned intergenerational gasoline , oil , and natural gas producing and exporting company, a subsidiary of the parent company Irving Group of Companies , —one of

3744-559: The Irving companies' ownership of all English-language daily newspapers in the province, including the Telegraph-Journal. Senator Joan Fraser, author of the Senate report, stated, "We didn't find anywhere else in the developed world a situation like the situation in New Brunswick." The report went further, stating, "the Irvings' corporate interests form an industrial-media complex that dominates

3848-562: The Marine Board of the National Academy of Sciences conducted a survey of industry experts regarding the pros and cons of double-hull design. Some of the advantages of the double-hull design that were mentioned include ease of ballasting in emergency situations, reduced practice of saltwater ballasting in cargo tanks decreases corrosion, increased environmental protection, cargo discharge is quicker, more complete and easier, tank washing

3952-744: The Suez Canal contributed, as did nationalization of Middle East oil refineries . Fierce competition among shipowners also played a part. But apart from these considerations is a simple economic advantage: the larger an oil tanker is, the more cheaply it can move crude oil, and the better it can help meet growing demands for oil. In 1955 the world's largest supertanker was 30,708  GRT and 47,500 LT  DWT : SS Spyros Niarchos launched that year by Vickers Armstrongs Shipbuilders Ltd in England for Greek shipping magnate Stavros Niarchos . In 1958 United States shipping magnate Daniel K. Ludwig broke

4056-505: The United Kingdom consumed about 1.6 million barrels (250,000 m ) of oil per day in 2009. ULCCs commissioned in the 1970s were the largest vessels ever built, but have all now been scrapped. A few newer ULCCs remain in service, none of which are more than 400 meters long. Because of their size, supertankers often cannot enter port fully loaded. These ships can take on their cargo at offshore platforms and single-point moorings . On

4160-512: The United States and the United Kingdom only had 59 and 27 registered oil tankers, respectively. In 2005, the average age of oil tankers worldwide was 10 years. Of these, 31.6% were under 4 years old and 14.3% were over 20 years old. In 2005, 475 new oil tankers were built, accounting for 30.7 million  DWT . The average size for these new tankers was 64,632  DWT . Nineteen of these were VLCC size, 19 were Suezmax, 51 were Aframax, and

4264-599: The amount as being "taxes and interest" which were "wrongly assessed against the company from 1971-75." In response, the government alleged that Irving Oil used a " sham " price system to "hide swollen profits from Revenue Canada , which has disallowed the company's claimed costs." In 1981, the provincial government, then-led by Richard Hatfield , granted a tax exemption towards provincial property taxes for Irving Oil's Canaport crude oil farm. Hatfield, who, according to CBC News , "was on record opposing special tax treatment for Irving Oil's Canaport oil terminal," granted

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4368-526: The canal had been rejected by the Suez Canal Company as being too risky. Samuel approached the problem a different way: asking the company for the specifications of a tanker it would allow through the canal. Armed with the canal company's specifications, Samuel ordered three tankers from William Gray & Company in northern England. Named Murex , Conch and Clam , each had a capacity of 5,010 long tons of deadweight. These three ships were

4472-487: The cargo tanks, and sometimes between individual tanks. A pumproom houses all the pumps connected to a tanker's cargo lines. Some larger tankers have two pumprooms. A pumproom generally spans the total breadth of the ship. A major component of tanker architecture is the design of the hull or outer structure. A tanker with a single outer shell between the product and the ocean is said to be "single-hulled". Most newer tankers are " double hulled ", with an extra space between

4576-475: The cargo to expand and contract due to temperature changes, and providing a method to ventilate the tanks. The first successful oil tanker was Zoroaster , built by Sven Alexander Almqvist in Motala Verkstad , which carried its 246 metric tons (242 long tons ) of kerosene cargo in two iron tanks joined by pipes. One tank was forward of the midships engine room and the other was aft. The ship also featured

4680-479: The charterer. Time charter arrangements specify a daily rate, and port costs and voyage expenses are also generally paid by the charterer. The Worldwide Tanker Normal Freight Scale, often referred to as Worldscale, is established and governed jointly by the Worldscale Associations of London and New York. Worldscale establishes a baseline price for carrying a metric ton of product between any two ports in

4784-435: The city drew heavy criticism from environmentalists and residents. Irving Oil was allowed to establish the terminal without environmental assessments. The facility has since faced complaints regarding air quality and noise. There was also conflict in Saint John over the proposed construction of a natural gas pipeline that was to cross through a major municipal park. However, it is unknown if there would be any health risks to

4888-530: The community. The Dominion newspaper, an independent Canadian newspaper, has criticized Irving's ownership of Brunswick News, as well as the newspapers' journalistic integrity, particularly when reporting on companies controlled by the Irving family such as Irving Oil. Even the Canadian Senate has examined the issue; a report from the Senate in 2006 on media control in Canada singled out New Brunswick because of

4992-451: The company economically transports much of its petroleum products to regional distribution terminals at ports throughout the region using its own fleet of coastal tankers. The Irving Whale , an oil barge owned by Irving Oil's sister firm J.D. Irving Ltd. , was carrying a cargo of 4300 tons of No. 6 fuel oil for Irving Oil when it sank in the Gulf of St. Lawrence on September 7, 1970, causing

5096-528: The company expanded; throughout the Maritime provinces , Irving Oil Company went from 10 wholesale bulk stations to 30 since its formation earlier that year. The company also went from having 27 retail service stations distributing its products to 450. The following year, the company went forward with developments toward creating an oil plant; the Saint John Harbor Commissioners leased out land for

5200-509: The company had 34 steam-driven oil tankers, compared to Standard Oil's four case-oil steamers and 16 sailing tankers. Until 1956, tankers were designed to be able to navigate the Suez Canal. This size restriction became much less of a priority after the closing of the canal during the Suez Crisis of 1956. Forced to move oil around the Cape of Good Hope , shipowners realized that bigger tankers were

5304-478: The company to go through with these developments. In August 1931, an unconfirmed report claimed that the company was acquired by Imperial Oil ; by the end of that year, Irving Oil had grown to become one of the largest gasoline distributors in the Maritimes. The company expanded across the Maritimes through the 1930s, to Quebec in 1940, Newfoundland in 1949, and to Maine in 1972. In 1977, Irving Oil became

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5408-416: The crew and maintaining the vessel. Finally, in a contract of affreightment or COA, the charterer specifies a total volume of cargo to be carried in a specific time period and in specific sizes, for example a COA could be specified as 1 million barrels (160,000 m ) of JP-5 in a year's time in 25,000-barrel (4,000 m ) shipments. One of the key aspects of any charter party is the freight rate , or

5512-499: The demand for new ships started to grow, resulting in 2007 in a record breaking order backlog for shipyards, exceeding their capacity with rising newbuilding prices as a result. This resulted in a glut of ships when demand dropped due to a weakened global economy and dramatically reduced demand in the United States. The charter rate for very large crude carriers, which carry two million barrels of oil, had peaked at $ 309,601 per day in 2007 but had dropped to $ 7,085 per day by 2012, far below

5616-756: The exemption and charged Irving Oil about $ 580,000 in Canaport property taxes, in what was described as an "inadvertent internal computer incident." The charge was later reverted and the exemption was reinstated. In March 2005, Irving Oil received a controversial municipal tax concessions for the Canaport site which were initially passed by the Saint John City Council and subsequently the Progressive Conservative government led by Bernard Lord . The concessions, which reduced Irving Oil's municipal property taxes from $ 8 million down to being capped at $ 500,000 until 2030, were initiated in order to develop

5720-507: The exemption following the 1979 oil crisis . Despite the issues caused by the crisis having long been resolved, the tax exemption has never been removed, saving Irving Oil from having to pay for over $ 20 million in property taxes since its introduction. Blaine Higgs , the current Premier and leader of the Progressive Conservative Party , stated during a 2016 CBC interview with Harry Forestell that he would "support ending

5824-545: The existing hydrogen plant. The refinery is classified as moderately complex with a Nelson Complexity Index of 8.24. According to filings made with the Government of Canada, the refinery emits roughly 3 million tons per year of CO2. Note all data below can be found publicly at the Government of Canada's environment website . (tonnes CO2 eq) The refinery has experienced several fires and explosions in its history, including

5928-508: The fact that they were generally used only once. The expense was significant: for example, in the early years of the Russian oil industry, barrels accounted for half the cost of petroleum production. In 1863, two sail-driven tankers were built on England's River Tyne . These were followed in 1873 by the first oil-tank steamer, Vaderland (Fatherland), which was built by Palmers Shipbuilding and Iron Company for Belgian owners. The vessel's use

6032-520: The first Canadian oil company to offer unleaded gasoline at its retail outlets. In the late 1990s it became the first oil company in Canada and one of the first in North America to offer gasoline with very low sulphur content, a fact which was recognized by many automobile manufacturers. Due to its investment in reducing emissions, Irving Oil was one of the few energy companies in Canada to publicly support

6136-400: The first modern commercial exploitation dates back to James Young 's manufacture of paraffin in 1850. In the early 1850s, oil began to be exported from Upper Burma, then a British colony. The oil was moved in earthenware vessels to the river bank where it was then poured into boat holds for transportation to Britain. In the 1860s, Pennsylvania oil fields became a major supplier of oil, and

6240-560: The first tankers of the Tank Syndicate, forerunner of today's Royal Dutch Shell company. With facilities prepared in Jakarta , Singapore , Bangkok , Saigon , Hong Kong , Shanghai , and Kobe , the fledgling Shell company was ready to become Standard Oil's first challenger in the Asian market. On August 24, 1892, Murex became the first tanker to pass through the Suez Canal . By the time Shell merged with Royal Dutch Petroleum in 1907,

6344-679: The following from public sources: 2018 - Explosion and fire shut Irving Oil refinery in Saint John, Canada Irving was fined $ 200,000 for this explosion due to 80 workers being impacted by the fire. On 6 July 2013, a train carrying crude oil from the Bakken Formation in North Dakota destined for the Irving Refinery derailed in Lac-Mégantic, Quebec , causing an explosion in the town center of Lac-Mégantic and killing 47 people. On 7 January 2014, another train carrying crude from Manitoba to

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6448-486: The gender-based analysis requirement imposed on Canadian pipeline projects by the Liberal government be instead applied to oil imported from Saudi Arabia. It came to light because of the 2019 Abqaiq–Khurais attack that virtually all the 115,000 barrels per day of imported Saudi oil that is processed in Canada is processed at the Irving oil refinery. Canada accounted for 1.5 per cent of exports from Saudi Arabia in 2018, when

6552-399: The government "ignored the public interest and pandered to big business." The July 2013 Lac-Mégantic, Quebec rail tanker explosion increased awareness in Saint John of potential rail safety issues involving Irving Oil crude shipments, since the train that exploded was on its way to the Irving Oil refinery there. Irving Oil's siting of a crude oil rail terminal in an east neighbourhood of

6656-531: The hull and the storage tanks. Hybrid designs such as "double-bottom" and "double-sided" combine aspects of single and double-hull designs. All single-hulled tankers around the world will be phased out by 2026, in accordance with the International Convention for the Prevention of Pollution from Ships, 1973 (MARPOL). The United Nations has decided to phase out single hull oil tankers by 2010. In 1998,

6760-522: The key to more efficient transport. While a typical T2 tanker of the World War II era was 162 metres (532 ft) long and had a capacity of 16,500  DWT , the ultra-large crude carriers (ULCC) built in the 1970s were over 400 metres (1,300 ft) long and had a capacity of 500,000  DWT . Several factors encouraged this growth. Hostilities in the Middle East which interrupted traffic through

6864-565: The largest "private conglomerates" in North America. Irving Oil was one established in 1924 by Canadian oil baron and billionaire, Kenneth "K.C." Irving , whose family fortune when he died in 1992 was estimated by Forbes at USD$ 5 billion. His son, Arthur , became chairman and president of Irving Oil. Arthur Irving died in 2024 Irving Oil operates Canada's largest refinery, the Irving Oil Refinery , in Saint John, New Brunswick , and Ireland's only refinery , in Whitegate, County Cork , as well as

6968-503: The late 1990s, when the "Mainway" banner ("Marché Mainway" in Quebec ) was introduced; "Mainway" being a brand appropriated from one of Irving's U.S. acquisitions. By the early 2000s, 56 of the company's Quebec locations had been leased to the Couche-Tard chain and rebranded accordingly, conversely 60 of Couche-Tard's fueling stations were supplied by Irving fuels and re-branded accordingly. By

7072-432: The late 19th century, one of the largest oil companies in the world. Ludvig was a pioneer in the development of early oil tankers. He first experimented with carrying oil in bulk on single-hulled barges. Turning his attention to self-propelled tankships, he faced a number of challenges. A primary concern was to keep the cargo and fumes well away from the engine room to avoid fires. Other challenges included allowing for

7176-651: The marine distribution terminals. Since the 1970s these semi-trailer tanker trucks were painted a distinctive golden yellow but the fleet underwent a paint scheme change in the 2000s to use white for both cab and trailer. Irving Oil's home heating fuel delivery truck fleet was similarly coloured and is undergoing a paint scheme change. Sister company J.D. Irving Limited owns and operates RST Industries which provides road tanker transport services for Irving Oil's wholesale deliveries, as well as for jet fuel, marine fuel, liquid asphalt, and other products. Irving Oil once made extensive use of rail service to deliver petroleum from

7280-1300: The mid 2000s, Irving began to renovate and rebrand its old "Mainway" stations under the name "Bluecanoe" as part of the company's modernization plan. The Bluecanoe brand was first introduced in New England and was introduced to some stations in eastern Ontario and the Atlantic provinces; however, many others were not upgraded and retained the older name "Mainway". On May 8, 2008, Irving announced that they would lease 252 of its gas stations in Atlantic Canada and New England to Couche-Tard for 20 years. Their gas remain supplied by Irving, but their convenience stores were converted to Circle K . In 2018, following Couche-Tard's acquisition of CST Brands (which saw most of its Canadian assets sold to Parkland Fuel ), 36 Ultramar gas stations in Atlantic Canada were converted to Irving/Circle K locations. Of them, 13 were in turn sold to Irving Oil and leased by Couche-Tard. Irving Oil also operates several "Big Stops", which are truck stops featuring family restaurants, facilities for truck drivers, and convenience stores. These large stations are located at strategic locations throughout New England ,

7384-575: The modernized and realigned arterial highway network in that province, and these facilities contain restaurants that have their own name and identity which are often reflective of the local area. The first modern Big Stop is in Salisbury, NB , and its restaurant is called "The Silver Fox"; the second one to open was in Lincoln, NB and has a restaurant called "The Blue Canoe"; the third was in Grand Falls, NB with

7488-438: The operating costs of these ships. As a result, several tanker operators laid up their ships. Prices rose significantly in 2015 and early 2016, but delivery of new tankers was projected to keep prices in check. Owners of large oil tanker fleets include Teekay Corporation , A P Moller Maersk , DS Torm , Frontline , MOL Tankship Management , Overseas Shipholding Group , and Euronav . In 2005, oil tankers made up 36.9% of

7592-430: The other end of the journey, they often pump their cargo off to smaller tankers at designated lightering points off-coast. Supertanker routes are typically long, requiring them to stay at sea for extended periods, often around seventy days at a time. The act of hiring a ship to carry cargo is called chartering. (The contract itself is known as a charter party . ) Tankers are hired by four types of charter agreements:

7696-425: The past, ships of the smaller Aframax and Suezmax classes are no longer regarded as supertankers. "Supertankers" are the largest oil tankers, and the largest mobile man-made structures. They include very large and ultra-large crude carriers (VLCCs and ULCCs – see above) with capacities over 250,000 DWT. These ships can transport 2,000,000 barrels (320,000 m ) of oil/318,000 metric tons. By way of comparison,

7800-581: The price specified for carriage of cargo. The freight rate of a tanker charter party is specified in one of four ways: by a lump sum rate, by rate per ton, by a time charter equivalent rate, or by Worldscale rate. In a lump sum rate arrangement, a fixed price is negotiated for the delivery of a specified cargo, and the ship's owner/operator is responsible to pay for all port costs and other voyage expenses. Rate per ton arrangements are used mostly in chemical tanker chartering, and differ from lump sum rates in that port costs and voyage expenses are generally paid by

7904-496: The province" to a degree "unique in developed countries." At the Senate hearing, journalists and academics cited Irving newspapers' lack of critical reporting on the family's influential businesses. There have also been accusations of Irving family political patronage, notably involving Allan Rock and Claudette Bradshaw of the Liberal Party of Canada . In 1987, Irving Oil sued the federal government for $ 141 million, citing

8008-486: The public interest and pandered to big business." The refinery is supplied with crude oil primarily delivered by supertankers to the company's Canaport deep-water terminal which was commissioned in 1970; prior to 1970, crude oil was delivered to the refinery through a much smaller terminal located on Courtney Bay immediately north of the Saint John Shipbuilding property. After Canaport opened, this terminal

8112-517: The record of 100,000 long tons of heavy displacement. His Universe Apollo displaced 104,500 long tons, a 23% increase from the previous record-holder, Universe Leader which also belonged to Ludwig. The first tanker over 100,000 dwt built in Europe was the British Admiral . The ship was launched at Barrow-in-Furness in 1965 by Elizabeth II . The world's largest supertanker was built in 1979 at

8216-418: The refinery in the late 1980s and expanded the facility to become Canada's largest refinery, processing over 300,000 barrels per day (48,000 m /d). In the late 1990s, the refinery was upgraded to create some of North America's lowest-emission petroleum. Since 1970 the refinery has been served by the Canaport crude oil receiving terminal southeast of Saint John. In 2009 this facility was expanded to host

8320-456: The refinery produced from Saudi oil one-third of its total output. In 2024, Irving's long-standing CEO stepped down as the company was undergoing a strategic review that would impact the future of the refinery. The company has been public in the review including a new owner or ownership structure. In July 2013 TC PipeLines announced a proposal to build the Energy East pipeline . This followed

8424-788: The rest consisted of refined petroleum products. This amounted to 34.1% of all seaborne trade for the year. Combining the amount carried with the distance it was carried, oil tankers moved 11,705 billion metric-ton-miles of oil in 2005. By comparison, in 1970 1.44 billion metric tons of oil were shipped by tanker. This amounted to 34.1% of all seaborne trade for that year. In terms of amount carried and distance carried, oil tankers moved 6,487 billion metric-ton-miles of oil in 1970. The United Nations also keeps statistics about oil tanker productivity, stated in terms of metric tons carried per metric ton of deadweight as well as metric-ton-miles of carriage per metric ton of deadweight. In 2005, for each 1  DWT of oil tankers, 6.7 metric tons of cargo

8528-434: The rest were smaller designs. By comparison, 8.0 million  DWT , 8.7 million  DWT , and 20.8 million  DWT worth of oil tanker capacity was built in 1980, 1990, and 2000 respectively. Ships are generally removed from the fleet through a process known as scrapping . Ship-owners and buyers negotiate scrap prices based on factors such as the ship's empty weight (called light ton displacement or LDT) and prices in

8632-488: The scrap metal market. In 1998, almost 700 ships went through the scrapping process at shipbreakers in places such as Gadani , Alang and Chittagong . In 2004 and 2005, 7.8 million  DWT and 5.7 million  DWT respectively of oil tankers were scrapped. Between 2000 and 2005, the capacity of oil tankers scrapped each year has ranged between 5.6 million  DWT and 18.4 million  DWT . In this same timeframe, tankers have accounted for between 56.5% and 90.5% of

8736-421: The ship. These holds were further subdivided into port and starboard sections by a longitudinal bulkhead. Earlier designs suffered from stability problems caused by the free surface effect , where oil sloshing from side to side could cause a ship to capsize. But this approach of dividing the ship's storage space into smaller tanks virtually eliminated free-surface problems. This approach, almost universal today,

8840-416: The sister firm to Irving Oil, is a dominant forestry company in northeastern North America, growing trees, harvesting trees and producing lumber, pulp and paper, and various enhanced value products such as magazine grade paper, tissue, and personal care products. James Irving also owns Brunswick News which controls most English-language newspapers in New Brunswick. The City of Saint John , where Irving Oil

8944-512: The supply and demand of oil as well as the supply and demand of oil tankers. Some particular variables include winter temperatures, excess tanker tonnage, supply fluctuations in the Persian Gulf , and interruptions in refinery services. In 2006, time-charters tended towards long term. Of the time charters executed in that year, 58% were for a period of 24 or more months, 14% were for periods of 12 to 24 months, 4% were from 6 to 12 months, and 24% were for periods of less than 6 months. From 2003,

9048-713: The system is still used today. Besides that, there is the flexible market scale, which takes typical routes and lots of 500,000 barrels (79,000 m ). Merchant oil tankers carry a wide range of hydrocarbon liquids ranging from crude oil to refined petroleum products. Crude carriers are among the largest, ranging from 55,000 DWT Panamax -sized vessels to ultra-large crude carriers (ULCCs) of over 440,000 DWT. Smaller tankers, ranging from well under 10,000 DWT to 80,000 DWT Panamax vessels, generally carry refined petroleum products, and are known as product tankers. The smallest tankers, with capacities under 10,000 DWT generally work near-coastal and inland waterways. Although they were in

9152-565: The tax authorities wanted evidence that the internal billing records were correct. Before the New York Mercantile Exchange started trading crude oil futures in 1983, it was difficult to determine the exact price of oil, which could change with every contract. Shell and BP , the first companies to use the system, abandoned the AFRA system in 1983, later followed by the US oil companies. However,

9256-550: The transportation subsidiaries of J.D. Irving (RST, Midland, NB Southern, Sunbury), to various construction and engineering companies that assist in building, maintaining and expanding the conglomerate's facilities. Further examples of vertical integration within the conglomerate include Industrial Security Ltd. (ISL), the wholly owned security company that guards facilities, as well as industrial suppliers such as Thornes, Universal Sales and Commercial Equipment Ltd. which provide specialty goods and services to its companies. J.D. Irving,

9360-461: The vessel hull instead of being loaded in barrels or drums. It was also the first tanker with a horizontal bulkhead; its features included cargo valves operable from the deck, cargo main piping, a vapor line, cofferdams for added safety, and the ability to fill a ballast tank with seawater when empty of cargo. The ship was built in Britain, and was purchased by Wilhelm Anton Riedemann, an agent for

9464-424: The voyage charter, the time charter, the bareboat charter , and contract of affreightment . In a voyage charter the charterer rents the vessel from the loading port to the discharge port. In a time charter the vessel is hired for a set period of time, to perform voyages as the charterer directs. In a bareboat charter the charterer acts as the ship's operator and manager, taking on responsibilities such as providing

9568-401: The world's fleet in terms of deadweight tonnage. The world's total oil tankers deadweight tonnage has increased from 326.1 million  DWT in 1970 to 960.0 million  DWT in 2005. The combined deadweight tonnage of oil tankers and bulk carriers, represents 72.9% of the world's fleet. In 2005, 2.42 billion metric tons of oil were shipped by tanker. 76.7% of this was crude oil, and

9672-610: The world's total scrapped ship tonnage. In this period the average age of scrapped oil tankers has ranged from 26.9 to 31.5 years. In 2005, the price for new oil tankers in the 32,000–45,000  DWT , 80,000–105,000  DWT , and 250,000–280,000  DWT ranges were $ 43 million, $ 58 million, and $ 120 million respectively. In 1985 these vessels would have cost $ 18 million, $ 22 million, and $ 47 million respectively. Oil tankers are often sold second hand. In 2005, 27.3 million  DWT worth of oil tankers were sold used. Some representative prices for that year include $ 42.5 million for

9776-484: The world. In Worldscale negotiations, operators and charterers will determine a price based on a percentage of the Worldscale rate. The baseline rate is expressed as WS 100. If a given charter party settled on 85% of the Worldscale rate, it would be expressed as WS 85. Similarly, a charter party set at 125% of the Worldscale rate would be expressed as WS 125. The market is affected by a wide variety of variables such as

9880-657: Was carried. Similarly, each 1  DWT of oil tankers was responsible for 32,400 metric-ton miles of carriage. The main loading ports in 2005 were located in Western Asia, Western Africa, North Africa, and the Caribbean, with 196.3, 196.3, 130.2 and 246.6 million metric tons of cargo loaded in these regions. The main discharge ports were located in North America, Europe, and Japan with 537.7, 438.4, and 215.0 million metric tons of cargo discharged in these regions. International law requires that every merchant ship be registered in

9984-552: Was converted to exclusively export the refinery's output. Irving has historically processed a mix of Saudi-supplied crude oil, according to import records this Saudi supply ranged from a high of 127,630 bpd in 2018 and a low of 63,024 bpd in 2012. In 2011 the refinery built a rail terminal for receiving crude oil; the refinery is served by tracks owned by Canadian National but which are operated by New Brunswick Southern Railway . In July 2010, Irving Oil cancelled plans for an $ 8-billion project, known as Eider Rock, which would have seen

10088-540: Was curtailed by US and Belgian authorities citing safety concerns. By 1871, the Pennsylvania oil fields were making limited use of oil tank barges and cylindrical railroad tank-cars similar to those in use today. The modern oil tanker was developed in the period from 1877 to 1885. In 1876, Ludvig and Robert Nobel , brothers of Alfred Nobel , founded Branobel (short for Brothers Nobel) in Baku , Azerbaijan . It was, during

10192-434: Was executed around 2000, including the "King of Cats" construction of a new residual oil Fluid Cat Cracker. The refinery is dual-train with 2 crude units and 2 FCCs. The refinery also was the first user of CDTech's CDHydro and CDHDS technologies for removing sulfur from cat cracked naphtha as part of its King of Cats project. Irving is an early adopter of green hydrogen and has implemented a 5 MW electrolyzer to supplement

10296-441: Was first used by Swan in the Nobel tankers Blesk , Lumen , and Lux . Others point to Glückauf , another design of Colonel Swan, as being the first modern oil tanker. It adopted the best practices from previous oil tanker designs to create the prototype for all subsequent vessels of the type. It was the first dedicated steam-driven ocean-going tanker in the world and was the first ship in which oil could be pumped directly into

10400-491: Was renamed Happy Giant in 1989, Jahre Viking in 1991, and Knock Nevis in 2004 (when she was converted into a permanently moored storage tanker). In 2009 she was sold for the last time, renamed Mont , and scrapped . As of 2011, the world's two largest working supertankers are the TI-class supertankers TI Europe and TI Oceania . These ships were built in 2002 and 2003 as Hellespont Alhambra and Hellespont Tara for

10504-411: Was revealed through leaked financial documents that during 2005, the same year that they had persuaded municipal and provincial governments in what ultimately granted them the tax concessions, Irving Oil made $ 250.7 million in profits. The corporation even profited $ 111.2 million during the 2007–2008 financial crisis , which severely dropped oil prices. Oil tanker An oil tanker , also known as

10608-648: Was the world's largest flag state for oil tankers, with 528 of the vessels in its registry. Six other flag states had more than 200 registered oil tankers: Liberia (464), Singapore (355), China (252), Russia (250), the Marshall Islands (234) and the Bahamas (209). The Panamanian, Liberian, Marshallese and Bahamian flags are open registries and considered by the International Transport Workers' Federation to be flags of convenience . By comparison,

10712-495: Was then incorporated in February 1929 as Irving Oil Company, Limited , with the newly-formed company being headquartered in Saint John; it acquired the preceding K. C. Irving Oil and Gas Company, Limited , the "gasoline and oil division" of K. C. Irving, Limited , as well as the Bore Motor Fuel Company, a Moncton -based company previously unrelated to Irving which was incorporated on March 20, 1924. By November 1929,

10816-415: Was to be built under a partnership between Irving Oil and BP plc . On July 24, 2009 both companies announced that they were indefinitely postponing plans to build the second refinery. Irving Oil's core retail area is in northeast North America and is well served by a network of regional ports and harbours in Atlantic Canada, Quebec and New England - an area that is under-served by pipelines. Consequently,

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