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
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…
Energy Industry Plans to Transition to EVs Unlikely by 2030
Unsurprisingly, the ongoing energy transition continues to face headwinds. Various governments have made bold proclamations regarding their objectives to slash greenhouse gas emissions over the next few decades. However, this has resulted in far fetched ideas, like fully eliminating internal combustion engine vehicles, some of which has been backed by oil and gas companies now…
OSV Demand Jumps Compared to 2023
Over the last seven quarters, the floating deepwater rig count in the USGOM continues to remain static between 20 and 22 rigs. Yet, demand for deepwater OSVs is significantly higher than just one year ago. While a summer uptick is expected, this does not explain the rise in demand relative to this time last year….
Deepwater OSV Industry Looks Towards New Builds
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
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 Fuel, Age Limit New Build Futures
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…
Older OSVs Activated. Create Oversupply in USGOM.
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…
Focus on Renewable Energy Could Strain Global Oil and Gas Markets
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…
OSV Demand Will Not Increase Vessel Supply
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…