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…
Deepwater OSV charters, particularly those of Super Major oil companies, have long had a strong age limit preference (if not strict rule) to cap the age of vessels in their term-charter fleet. These limitations are now being reconsidered as charterers recognize that the current fleet is aging, yet there are no new vessels in construction…
The deepwater OSV market in the US GOM is becoming a “tale of two groups” of vessel supply. The newer, more capable, and most efficient deepwater OSVs are in high demand with sustained long-term contracts. On the side of the market are the oldest, least capable, and least efficient OSVs that are chartered to fill…
I have and will continue to advocate for an “all of the above” approach to investing and developing global energy solutions. What is problematic, however, is the focus on renewable energy to the detriment of conventional oil and gas resources. The targets and timelines to achieve net zero carbon put forth by many of the…
It’s dangerous to assume that a current situation might be different than something similar in the past, but this just may be the case for the OSV industry in the US GOM. The reasons for this are becoming more clear as the level of US GOM offshore activity has remained relatively static over the past…
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…
This time of year not only means the holidays are here but also the International Work Boat Show (WBS) that’s held annually in New Orleans. Based on the size of the crowds, this year’s conference was easily the most attended show post-COVID. This doesn’t surprise me given the resurgence in the offshore oil and gas industry and…
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…