Sustained lower oil prices have offshore supply vessel companies running out of options

July 14, 2017
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Over the next few years, offshore supply vessels (OSVs) will have to confront their new reality: lower demand, shorter charter contracts, and reduced day rates.

At a glance

  • 2017 could be one of the worst years in decades for OSVs.
  • The Gulf of Mexico has been a brutal place to operate, the North Sea market remains depressed, Brazil remains subdued, and exploration and production activities in Southeast Asia have declined.
  • With excess shipyard capacity, numbers of OSV operators and OSVs, and debt, companies will have to be diligent and take radical steps to survive.
  • On the bright side, positive trends including M&A opportunities, effective cost reductions, and stronger capacity discipline are on the rise.

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