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MARITIME REPORTER & ENGINEERING NEWS A host of seemingly unrelated financial forces have conspired to drag down the maritime market as 1997 comes to a close, but prospects for continued fleet renewals — particularly in the tanker segment — and for the lucrative offshore market remain upbeat for the year to come. If anything, the recent spate of financial turmoil and market moves has proven the true breadth and depth of international business co-dependency. In particu- lar, events in the Middle East — specifically the recent meeting of OPEC nations — have direct, tangible effects on ship, boat and rig building and supply com- panies around the world, from the North Sea to the Gulf of Mexico. As soon as OPEC leaders decreed to boost oil production by 10 percent — combined with the possi- bility of additional Iraqi oil coming to market with the potential expansion of the U.N. oil-for-food deal — a case of collective jitters hit the stock market, as oil majors, E&P companies and builders alike saw their stock and market value summarily drop. While the business of extracting and bringing oil to market has, is and will always be a slave to supply and demand, this latest "oil boom" is proving more resilient and less sensitive to price-per-barrel swings for a few reasons. First, worldwide demand for oil products is predicted to rise steadily through 2000, despite recent trouble in the Far East. Second, technology and royalty tax breaks now allows companies to find and extract deepwater resources more cost effectively. Another trend worth watching in 1998 is the recovery and re-shaping of the Korean market. The near collapse of the Korean financial system warranted a record bail-out on behalf of the International Monetary Fund in the neighborhood of $55 billion. This money, of course, comes with strings attached. While specifics of the deal were still unfolding at press time, it seems the package mandates a reform of Korean industrial giants, calling for them to open their traditionally tightly held markets to foreign competition. What this all means to the shipbuilding market is still uncertain, but any company with hopes of break- ing into the Korean market — the world's second largest commercial shipbuilding market — (i.e. ship- builders and ship equipment suppliers) may have a golden opportunity next year and beyond. Gregory R. Trauthwein, editorial director Please contact me with any comments regarding the publication and!or news leads at: tel: +212-477-6700; fax: +212-254-6271; or e-mail: trauthwein@marinelink.com i, the new weekly paper from the publishers of Maritime Reporter, provides crucial, timely, financial-related information for anyone conducting business in the maritime industry. For a FREE 4- WEEK trial subscription, contact me by telephone, fax or e-mail using the information above. HHHHHHHHHH^^ Editorial & Executive Offices 118 E. 25th St., NY, NY 10010 Tel: (212) 477-6700; Fax: (212) 254-6271; e-mail: mren@marinelink.coni PUBLISHERS Charles P. O'Malley John E. O'Malley John C. O'Malley Vice President Gregory R. Trauthwein EDITORIAL Editorial Director Gregory R. Trauthwein Senior Editor Nina D. Miller Production Editor Anthony Besada Technical Editor David Tinsley International Editor Alan Thorpe Editorial Consultant James R. McCaul, president, International Maritime Associates INFORMATION SYSTEMS Manager of Information Systems Susan Cosme MARKETING Marketing Assistant Jennifer Bobbe PRODUCTION Production Manager Adam Hellman Asst. Production Manager Christopher Eaton CIRCULATION Grculation Manager Dale L. Barnett ADVERTISING SALES Regional Sales Manager Lucia Annunziata Regional Sales Manager Amy Stuart Regional Sales Manager Jean M. Vertucci Classified Sales Representative Carrie Rivera U.S. GULF COAST James N. McClintock Simpson Corporate Park, Indigo House, Suite A, 206 South Tyler Street, Covington, La. 70433 Telephone: (504) 893-5099; Fax: (504) 893-5024 Advertising Sales Information Telephone: +212-477-6700 8 Maritime Reporter/Engineering News
