Seasonal Cycles Report Slowing in OSV Activity

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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…

Deepwater OSVs Look to Expand Life to 20+ Years

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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 Brazil Set to Build 12 New OSVs

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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…

Deepwater OSV Industry Looks Towards New Builds

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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…

Renewable Energy Discussions Lead OSJ Conference

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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…

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…