Archives for category: offshore sector

Conditions in the offshore sector have been notably challenging since the oil price crash of 2014. One particularly stark symptom of the downturn has been the long slowdown in the pace of delivery of offshore assets. Although this has offered some supply-side support, it has provided a clear sign, even after some market improvements, of quite how sustained the impact from a prolonged downturn can be.

 

For the full version of this article, please go to Shipping Intelligence Network.

2019 was a cautiously positive year for the offshore industry, with the slow journey towards market rebalancing continuing to progress in most sectors. Nonetheless, the industry continued to face substantial structural pressures, with demand growth in most vessel classes only modest and oversupply remaining an issue in almost every region.

For the full version of this article, please go to Offshore Intelligence Network.

 

Offshore exploration has been challenged since the onset of the downturn. There have been some major discoveries in countries such as Guyana and Mauritania, but oil company exploration spending remains significantly lower than pre-downturn outlay, and in 2018 offshore discoveries fell to the lowest level in around 50 years. That being said, might there now be signs of some improvement to come?

For the full version of this article, please go to Offshore Intelligence Network.

As recent history demonstrates, if the global oil supply-demand balance moves from a deficit of supply to a surplus, or vice versa, the effect on oil prices and hence the offshore sector can be far reaching. At present, as 2019 draws nearer, oil demand and supply look to be increasingly finely balanced. However, there are still a range of uncertainties that could significantly shift the current oil supply-demand outlook.

For the full version of this article, please go to Offshore Intelligence Network.

2018 so far has been a year of firming oil prices. Despite continued strong output growth from US shale, the crude price has risen, with Brent even topping $80/bbl, fuelled by political risk: Venezuelan instability, North Korea and sanctions on Iran. Supply outages, plus higher prices muting demand, have hit the tanker market. However, the flip side has been more positive indications (at last) in the offshore sector.

For the full version of this article, please go to Shipping Intelligence Network.

 

Brazil’s offshore sector has faced various challenges in recent years but nevertheless still accounts for 11% of all offshore oil production, 20% of all ultra-deepwater fields and 23% of FPSO deployments globally. It also still has significant untapped potential, or at least so many international oil companies seem to think, if the results of the country’s most recent offshore block licensing rounds are any guide.

For the full version of this article, please go to Offshore Intelligence Network.

Shallow water field developments can often be overshadowed by complex deepwater projects involving MOPUs and subsea trees. Yet shallow water, fixed platform developments remain a key part of the offshore sector and a significant source of vessel demand in many areas. And with some notable fixed platform project FIDs coming up, a review of this sometimes neglected segment seems timely.

For the full version of this article, please go to Offshore Intelligence Network.

After three consecutive years of falling offshore project CAPEX, things were a little more positive on the project sanctioning front in 2017, with major developments such as Coral FLNG Ph.1 receiving FIDs and total global offshore project CAPEX rising by 44% y-o-y. Sanctioning sentiment is still well below pre-downturn levels, but the relative positivity seems to be holding, so what might be on the cards for 2018?

For the full version of this article, please go to Offshore Intelligence Network.

After an extremely challenging 2016, parts of the offshore sector had a less harrowing year in 2017. Oil prices, though volatile, trended upwards, offshore project sanctioning picked up and there was a sense that perhaps some charter markets were starting to bottom out. That being said, it was still another very challenging year for the offshore fleet and owners will certainly be looking for improvements in 2018.

For the full version of this article, please go to Offshore Intelligence Network.

Since the onset of the downturn in 2014 it has been a pretty bleak few years for the offshore sector, with the occasional chinks of light on the horizon often quickly clouded over. More recently there have been indications that things might be clearing up a little and so sentiment has improved somewhat. But it is worth recalling just how low the barometer has sunk in order to put these things in perspective.

For the full version of this article, please go to Offshore Intelligence Network.