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…
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…
In previous newsletters I have extensively covered the challenges our industry faces in renewing the deepwater OSV fleet and the particular challenges for the US Jones Act fleet. The costs of new construction along with challenges in securing financing and favorable contract terms present serious challenges to all vessel owners. In the near future, the…
On June 11th and 12th, I attended the Offshore Support Journal Conference, Americas 2024. Attendees included major US offshore vessel owners, bankers, equipment manufacturers, regulatory bodies, statutory agencies, and other industries involved in the offshore marine space. While not surprising, there was a significant focus on offshore renewables which seems to continue the aversion to conventional…
The harsh realities of offshore renewables, particularly in the USA, continue to prove problematic for those that have invested in that market. While an “all of the above” approach to solving our collective energy transition problem is appropriate, far too much optimism is being driven by government inducement. While both positive and negative, it is…