The market for US Jones Act (USJA) deepwater OSVs has continued to trend favorably for vessel owners. While the seasonal uptick in demand is occurring as expected, the number of deepwater OSVs departing the Gulf of America also continues to increase. These two phenomena are creating a very tight supply in the near term and…
Back in March, I highlighted that nearly a dozen or so older OSVs had been sitting idle in Fourchon, but that this supply would be utilized in the spring and summer months. As we approach June, these older OSVs are starting to attract charter opportunities. However, and possibly more interesting, many are moving out of…
Five years ago this month, we were in the first six weeks of a COVID lockdown and the world was grinding to a shocking halt. Oil prices collapsed and briefly traded negative, plunging to nearly -$40 per barrel. This was an anomaly, and if you are interested on how this happened, please go back and…
While I was in Fourchon this past week, the level of activity suggested that the spring and summer months will be busy, as per usual. Though there was obvious vessel activity, the vessels being utilized continue to be the newer and younger boats while the older, lesser efficient, and less capable vessels were noticeably much…
The deepwater OSV market in the Gulf of America (GOA) has remained relatively tight mostly due to the general lack of available supply of vessels. Though the total fleet of Jones Act qualified deepwater OSVs is just over 100 boats, nearly one third are working outside of the GOA. Unless, and until a meaningful number…
President Trump recently signed an executive order on energy policy entitled Unleashing American Energy. This order sets out to encourage energy exploration and production on Federal lands and waters including on the Outer Continental Shelf as well as ensure all regulatory requirements related to energy are grounded in clearly applicable law. As the President has…
Anyone who has made a career in our industry knows the cyclical nature of offshore oil and gas activity. These cycles can be erratic, and momentum can change quickly. Some are even “mini-cycles” that typically occur within a longer-term cycle due to planned seasonal activities. The severity of seasonal cycles can be jarring, and though…
My thoughts on the deepwater OSV fleet renewal in the US Gulf of Mexico are evolving, if even in a nuanced way. This comes from several meetings and conversations following the recent International Workboat Show. I continue to believe that new vessels will be built against specific, long-term contractual requirements. However, both the number of…
Petrobras recently concluded the contracting process of awarding vessel charters to renew the OSV fleet that supports its oil and gas activity in offshore Brazil. This was the first opportunity for owners to bid to construct new vessels for long-term charters in Brazil in over ten years. Ultimately, twelve contracts were awarded and split between…
Unsurprisingly, the ongoing energy transition continues to face headwinds. Various governments have made bold proclamations regarding their objectives to slash greenhouse gas emissions over the next few decades. However, this has resulted in far fetched ideas, like fully eliminating internal combustion engine vehicles, some of which has been backed by oil and gas companies now…