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…
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…
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…
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…
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…
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…
The deepwater floating rig count in the US Gulf of Mexico (GOM) is now currently at 19 rigs. This is a small upward trend that I suspect will remain sustained, especially when the known additional deepwater rigs coming to the market actually arrive. Though the new count only represents a one rig increase this year, it is meaningful for the…
As the OSV market continues to remain tight into foreseeable future, charterers of OSVs in our industry are scrambling to figure out how to meet their increasing vessel needs. Many industry observers point to a reactivation of the remaining stacked fleet as a means to bring additional supply to the market. When considering the only truly…
The nuclear power generation industry is rarely front and center in the global energy transition discussion. Most of the focus has been placed on the need to develop alternative energy sources such as wind and solar, with the objectives to reduce oil and gas consumption and achieve net zero carbon emissions. This is certainly a…