I recently read two news articles focused on vastly different aspects of the oil and gas industry that seemed to be unrelated on the surface. The first was about declining shale oil production in the US and the second about Shell refocusing on investment in fossil fuels. However, when each is more closely considered, it becomes…
The uptrend in oil demand expected in the latter half of this year does seem to be coming to fruition. Even with the backdrop of a slowing global economy, the lifting of COVID restrictions in China was thought to drive oil demand significantly higher through this year. However, this has not been the case and China…
There has been some prevailing doubt about the sustained recovery in the US OSV market. At this point, I feel comfortable stating that the recovery is being sustained. What is taking place globally and in the US GOM looks similar to past recoveries that followed industry downturns. It’s not identical, but what is playing out…
In the quest to achieve net zero carbon emissions within their respective goal deadlines, energy companies are evaluating a myriad of solutions to reduce carbon emission and how to offset and/or dispose of those emissions. The idea of carbon capture and storage is not new, but it is likely going to become a more significant means…
The offshore supply vessel industry faces significant challenges to meet the decarbonization goals of energy company clients. Vessel operators must find ways to reduce carbon emissions while also maintaining the efficiency and capacities of their vessels. Hydrogen has long been seen as a “fuel of the future” that could yield the emissions reductions needed to…
As the world continues marching down the road towards net-zero carbon emissions, the US Gulf of Mexico continues to be a leading and growing oil and gas production basin. The cost of renewable energy development, low profit margins on renewable energy, and the cost of carbon emission offsets requires significant cash flow which must come from…
Global oil demand continues to recover following COVID and as China’s pandemic related restrictions are lifted. The International Energy Agency (IEA) is forecasting global oil demand to increase by 1.9 million barrels per day to 101.7 million barrels. Nearly half of this increase in demand will come from China as a result of the lifting of their COVID…
JOO has recently participated in an RFI requested asking for indicative charter rates for new deepwater OSVs for oil field service work based on vessel construction costs. Prior to receiving pricing from our selected yards, I expected to see costs to build a new OSV at around $60 million USD. I was quite wrong, with the…
Recently, I’ve covered the aging fleet of Jones Act qualified deepwater OSVs operating in the US Gulf of Mexico and the implications it will have on the overall OSV market as demand continues to rise. In recent conversations about future vessel demands has focused on possible new build vessels. Given the cost of new construction…
Though the major international offshore oil and gas markets do not have a direct bearing on the US GOM, I do follow activity in those markets closely. Recent broker reports that cover other major regions have highlighted the aging fleet of OSVs and the lack of new OSVs contracted to be built to replace older…