North West Europe is a key offshore area, accounting for 3.2m bpd of offshore oil production (12% of the global total) and 17.8bn cfd of offshore gas (14%). Whilst 10% of the active jack-up fleet and 23% of the active floating MDU fleet are deployed off North West Europe, these are harsh environment units. The region is also home to c.400 OSVs, or 11% of the fleet, but hosts 30% of all PSVs >4,000 dwt.

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

 

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Shipping is often said to provide a good example of classic ‘market mechanics’ in action. Participants react to market conditions, and in turn this contributes to the cyclicality of the business. While factors shaping the demand side are rarely within owners’ control, supply side responses to the state of the shipping markets, including recycling or investment in new tonnage, are often fairly clear…

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

The offshore markets have faced some tough times since 2014, with low utilisation and rates causing difficulties for most companies involved in the sector. As SIW has reported, 2019 has seen several offshore markets start to turn the corner. However, offshore is a complex business, with lots of separate niche sectors which have shown varying levels of improvement. So, let’s have a look at the detail.

 

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

Container shipping has long been regarded as one of the most consolidated parts of shipping, and in recent years the containership operator scene, following a wave of merger activity, has become more consolidated than ever before. But behind the big headlines and the global context of box shipping, there’s actually a little more to consider.

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

In such a volatile business as shipping, it is commonly held that shipowners are “paid to take the risk”. As a result of this, earnings from their assets may often be thin whilst they bide their time for the “days in the sun” when they enjoy earnings at the top end of the market range where they make a significant share of their money. Here we take a close look at this distribution of owners’ earnings.

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

In the H.G. Wells novella The Time Machine, the main character describes how he has travelled thousands of years into the future, using a contraption controlled by two levers. While today’s shipowners can only dream of a machine that could take them through time to the top of the shipping cycle, they do have access to a range of supply-side ‘levers’, which clearly can be used in very different ways.

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

Drilling wells offshore always has an element of risk attached, and comes with significant upfront cost. Yet only a few appraisal campaigns end in ‘mega-finds’, and not all wells drilled indicate volumes of oil or gas worthy of stand-alone development. Whilst many such fields were side-lined as ‘non-commercial’ in the boom, since the downturn there has been an increasing push to develop more marginal satellites.

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