Offshore Renewables Face Harsh Economic Realities

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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…

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

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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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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…

Deepwater Rig Count Not Representative of USGOM Activity

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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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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…

Oil Futures Drop Prices While USGOM Activity Continues

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From the recent peak in oil from $122/bbl on approximately June 8th to the price of $94/bbl on July 22nd, oil is down 22%. This is a rather dramatic change given the amount and short period of time. I recently discussed the potential of a recession and the impact it may have on oil demand and oil…

Deepwater Recovery Continues Through Unexpected Activity

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In early 2020, prior to the the COVID shutdowns in mid-March, the offshore oil and gas industry in the US GOM was showing strong signs of a sustained recovery. By the end of February 2020, there were 22 deep water rigs actively drilling, the most since 2017. After the pandemic shut the world down, offshore activity dropped dramatically…

Capitalizing on Increased Oil Prices: Now Is the Time

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I recently did an analysis of oil prices and the number of deepwater rigs in the US Gulf of Mexico going all the way back to 2014. I wasn’t sure what the results might indicate but I had a general idea of what the averages were at the end of each respective year. In summary, here are…

New Industries Provide Positive Outlook for OSV Market

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While the offshore market is showing signs of a sustained recovery with OSV demand increasing dramatically over the last few months, there are other industries that will drive even more OSV demand. There has been much made of the need for existing OSVs to support offshore wind farm activities in the US. Though the desire is for…

2021 Wrapped: Will Omicron Derail An Increase GOM Activity?

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As 2021 draws to a close, there are many reasons to be both optimistic and cautious about our industry in 2022 and beyond. While there have been positive trends in market drivers for OSV demand, we are still faced with the threat of COVID and the impact it may have on oil and gas demand. Overall,…