There are emerging headwinds in the offshore oil and gas industry in the Gulf of America that many operators are citing as challenges to growth in activity in the region. Among these challenges are the rising costs associated with drilling wells in the GOA. Data presented at a recent industry association meeting indicated that the…
Both the ABS Offshore Support Vessel Forum and the WBS were very well attended. In my opinion, this year’s edition of the WBS was the first that felt like it had more attendees than any show since the last pre-COVID WBS. The number of attendees, exhibitors, and related events surrounding the WBS was impressive, signaling…
Oil prices continue to move within a tight range around $60/bbl for WTI. While this price level is more than sufficient for oil and gas operators with activity in the deepwater GOA to make a profit in the region, it limits additional investment to increase production. This is not a new trend, going back to…
Oil prices have declined precipitously over the past year. Year-to-date, the cost per barrel of WTI oil has declined from roughly $80/bbl to roughly $59/bbl, a decrease of $21/bbl, or 26%. Despite this, however, the general trend among major oil producers is that capital expenditures have remained relatively strong. There continues to be a need…
A prominent trade publication covering the offshore marine industry recently published an article highlighting the “large” order book of OSVs and noted that about 50% of the order book was ordered speculatively. The headline summed this up concisely but also came across as alarming. Given the limited number of new build OSVs announced in recent…
As an industry and company, we are constantly challenged by our clients to drive efficiency and create long-term value. Over the past 20 years, vessels have become significantly more efficient, burning less fuel and offering improved reliability. Technologies such as FuelTrax have been developed to enhance fuel efficiency, while data analytics platforms like Opsealog help…
At the end of June, the U.S. Bureau of Ocean Energy Management (BOEM) announced a proposed notice for an oil and gas lease sale in the Gulf of America. This follows an April directive from U.S. Secretary of the Interior Doug Burgum. Currently, a 60-day comment period is underway for affected state and local governments….
The market for US Jones Act (USJA) deepwater OSVs has continued to trend favorably for vessel owners. While the seasonal uptick in demand is occurring as expected, the number of deepwater OSVs departing the Gulf of America also continues to increase. These two phenomena are creating a very tight supply in the near term and…
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…