Both the ABS Offshore Support Vessel Forum and the WBS were very well attended. In my opinion, this year’s edition of the WBS was the first that felt like it had more attendees than any show since the last pre-COVID WBS. The number of attendees, exhibitors, and related events surrounding the WBS was impressive, signaling…
Oil prices continue to move within a tight range around $60/bbl for WTI. While this price level is more than sufficient for oil and gas operators with activity in the deepwater GOA to make a profit in the region, it limits additional investment to increase production. This is not a new trend, going back to…
Oil prices have declined precipitously over the past year. Year-to-date, the cost per barrel of WTI oil has declined from roughly $80/bbl to roughly $59/bbl, a decrease of $21/bbl, or 26%. Despite this, however, the general trend among major oil producers is that capital expenditures have remained relatively strong. There continues to be a need…
As an industry and company, we are constantly challenged by our clients to drive efficiency and create long-term value. Over the past 20 years, vessels have become significantly more efficient, burning less fuel and offering improved reliability. Technologies such as FuelTrax have been developed to enhance fuel efficiency, while data analytics platforms like Opsealog help…
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…
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…
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…
Over the last seven quarters, the floating deepwater rig count in the USGOM continues to remain static between 20 and 22 rigs. Yet, demand for deepwater OSVs is significantly higher than just one year ago. While a summer uptick is expected, this does not explain the rise in demand relative to this time last year….
Deepwater OSV charters, particularly those of Super Major oil companies, have long had a strong age limit preference (if not strict rule) to cap the age of vessels in their term-charter fleet. These limitations are now being reconsidered as charterers recognize that the current fleet is aging, yet there are no new vessels in construction…
The deepwater OSV market in the US GOM is becoming a “tale of two groups” of vessel supply. The newer, more capable, and most efficient deepwater OSVs are in high demand with sustained long-term contracts. On the side of the market are the oldest, least capable, and least efficient OSVs that are chartered to fill…