To me, when there is overwhelming positive agreement on something, then it’s time to take a step back and consider if that sentiment is deserving. For today’s OSV industry, it certainly seems time to evaluate if the current positivity around the industry is warranted—something we haven’t see since 2007 and 2008. In that timeframe, the upticks were being driven…
In May, I discussed the OSV industry recovery taking place in the in both the USGOM and West Africa. These markets make up two-thirds of the Golden Triangle of offshore oil and gas activity with Brazil as the third corner. Brazil is now showing signs of sustained recovery and a long-term up cycle which further underscores…
Ten years ago, in the fall of 2013, oil prices were almost exactly where they are today. The deepwater floating rig count in the US Gulf of Mexico was near all time highs. Demand for deepwater OSVs was far outstripping supply and charter rates were at record highs. There was still a lot of optimism…
The deepwater mobile offshore drilling rig (floating rigs) market is not always the best proxy for the offshore supply vessel market, but the two are currently trending in similar manner. The floating rig market is corroborating the dynamics of the OSV market with valuations and charter rates moving up at a rapid pace. Also, same…
I recently read two news articles focused on vastly different aspects of the oil and gas industry that seemed to be unrelated on the surface. The first was about declining shale oil production in the US and the second about Shell refocusing on investment in fossil fuels. However, when each is more closely considered, it becomes…
The uptrend in oil demand expected in the latter half of this year does seem to be coming to fruition. Even with the backdrop of a slowing global economy, the lifting of COVID restrictions in China was thought to drive oil demand significantly higher through this year. However, this has not been the case and China…
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…