Archives for posts with tag: Offshore Intelligence Monthly

Whilst most offshore vessels have been burning MGO for many years with benefits in terms of reduced NOx and SOx emissions (relative to HFO), efforts to transition to cleaner, lower carbon fuels are increasingly evident. The first adoption of LNG fuel was by Norwegian players, but there are now slow signs of interest in a range of alternative fuel options, from owners and charterers in a range of regions. 

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

The start of 2020 was a time of cautious optimism for offshore vessel owners. A trend towards slow market rebalancing had prevailed across 2018/19, and hopes were for a continuation of this. Covid-19’s arrival, however, soon changed the narrative. Low oil prices, slumping global oil demand and necessary production cuts have weakened markets, leaving 2020 a year to forget for owners and operators alike.

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

Covid-19 has been a tough blow to the offshore sector. The sector has had a difficult last half decade, with the boom-times of >$100/bbl oil receding into the rear-view mirror. Although utilisation and dayrate levels began to tick up in 2019, the outlook was significantly weakened by Covid-19. Tracking the key indicators on how offshore markets are developing will be important as the downturn plays out.

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

The impact of the spread of Covid-19 in Q1 2020 on the energy markets has contributed to a significant shift in the outlook for the offshore industry, as well as the wider oil and gas sector. Operators have shifted rapidly from planning modest increases in CAPEX budgets to making swingeing cuts, and major offshore projects are being delayed and cancelled as a result.

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

 

Offshore contracting has remained at extremely low levels for a number of years, and the mobile offshore orderbook has now shrunk to less than a quarter of its peak size. Furthermore, the majority of units on order in the MDU and OSV sectors were now contracted more than five years ago. This month’s Analysis examines what’s still on the orderbook and where solutions have been found.

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

 

Exploration drilling has naturally faced cutbacks since the offshore downturn. As discretionary spending, it typically suffers in weaker markets. Yet, as 2019 began, it seemed like several promising wildcat wells were on the horizon. Some wells have delivered key discoveries, likely to add impetus toward project FIDs. But other high-profile campaigns have disappointed. So, what’s succeeded and what’s failed?

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

Providing an overview of the commercial backdrop and expenditure trends in the offshore industry can be difficult, given the sheer breadth of the assets and regions involved. To help with this, Clarksons Research offers two macro level indicators, the Clarksons Offshore Index and the Offshore Project CAPEX timeseries, which can help explain the structure of and trends in offshore spending.

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

The Middle East is a significant yet mature area of offshore oil production, accounting for some 28% of global offshore supply from a range of fields, some of which have been producing since as early as the 1950s. A smaller part of the global offshore investment story historically, the region has come to the fore in 2019 as a number of large projects have reached FID in a still challenging global offshore market.

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

 

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.