Golden Triangle Trends Prove Sustained OSV Recovery

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Matthew Rigdon, Executive VP and COO

There has been some prevailing doubt about the sustained recovery in the US OSV market. At this point, I feel comfortable stating that the recovery is being sustained. What is taking place globally and in the US GOM looks similar to past recoveries that followed industry downturns. It’s not identical, but what is playing out…

USGOM Carbon Capture and Storage Signals Long-Term Oil and Gas Market

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Matthew Rigdon, Executive VP and COO

In the quest to achieve net zero carbon emissions within their respective goal deadlines, energy companies are evaluating a myriad of solutions to reduce carbon emission and how to offset and/or dispose of those emissions. The idea of carbon capture and storage is not new, but it is likely going to become a more significant means…

Is Hydrogen the Way of the Future for Deepwater Vessel Fuel?

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Matthew Rigdon, Executive VP and COO

The offshore supply vessel industry faces significant challenges to meet the decarbonization goals of energy company clients. Vessel operators must find ways to reduce carbon emissions while also maintaining the efficiency and capacities of their vessels. Hydrogen has long been seen as a “fuel of the future” that could yield the emissions reductions needed to…

Net-Zero Carbon Poises USGOM for Added Oil and Gas Production

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Matthew Rigdon, Executive VP and COO

As the world continues marching down the road towards net-zero carbon emissions, the US Gulf of Mexico continues to be a leading and growing oil and gas production basin. The cost of renewable energy development, low profit margins on renewable energy, and the cost of carbon emission offsets requires significant cash flow which must come from…

Post-Pandemic Life Brings Boost to Oil Demand

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Matthew Rigdon, Executive VP and COO

Global oil demand continues to recover following COVID and as China’s pandemic related restrictions are lifted. The International Energy Agency (IEA) is forecasting global oil demand to increase by 1.9 million barrels per day to 101.7 million barrels. Nearly half of this increase in demand will come from China as a result of the lifting of their COVID…

New, Higher OSV Build Costs Benefit Existing Fleet

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Matthew Rigdon, Executive VP and COO

JOO has recently participated in an RFI requested asking for indicative charter rates for new deepwater OSVs for oil field service work based on vessel construction costs. Prior to receiving pricing from our selected yards, I expected to see costs to build a new OSV at around $60 million USD. I was quite wrong, with the…

Lack of New OSV Builds Boosts Support for Younger Fleets

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Matthew Rigdon, Executive VP and COO

Recently, I’ve covered the aging fleet of Jones Act qualified deepwater OSVs operating in the US Gulf of Mexico and the implications it will have on the overall OSV market as demand continues to rise. In recent conversations about future vessel demands has focused on possible new build vessels. Given the cost of new construction…

OSV Fleet Age Could Present Challenges in the US GOM

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Matthew Rigdon, Executive VP and COO

Though the major international offshore oil and gas markets do not have a direct bearing on the US GOM, I do follow activity in those markets closely. Recent broker reports that cover other major regions have highlighted the aging fleet of OSVs and the lack of new OSVs contracted to be built to replace older…

Deepwater Rig Count Not Representative of USGOM Activity

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Matthew Rigdon, Executive VP and COO

The number of active drilling rigs continues to belie the overall activity in the deepwater US Gulf of Mexico. Historically, it has been deepwater floating rig activity that has driven vessel demand but the current deepwater rig count currently stands at 19. This is striking because the price of oil has remained sustained above $80…

Biden Moratorium Overturned As Production Resumes on Federal Lands

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Matthew Rigdon, Executive VP and COO

Almost immediately after taking office in 2021, President Biden imposed a moratorium on federal oil and gas lease sales. Thirteen states in total, including Louisiana, Texas and all but one state along the Gulf Coast, filed suit. The suits claim substantial loss of revenues for local government funding, loss of jobs for those states’ workers, and…