Page 40: of Marine News Magazine (October 2012)

Last month, Paul Candies, president and chief executive of Otto Candies, LLC, in Des Allemands, La, said ?deepwater oil projects have increased nicely in 2012, generating some good orders to shipyards for large vessels.? Qualifying those remarks, however, he added, ?Shallow water-shelf work is slow.? Weighing in on Hurricane Isaac, which made landfall west of Port Fourchon, La. on August 29 and moved up the West Bank of New Orleans, Candies also said that while it closed yards for a few days, it otherwise had little impact on the marine industry. In Morgan City, La., David Barousse, business development director at Fleet Operators, said ?so far, 2012 has been good for vessel operators on the GOM shelf. Demand for vessels for various types of offshore work has been high compared to recent years, especially in the summer of 2012.? Fleet Operators owns and charters supply vessels for offshore oil and gas. ?The past few years were hard on everyone,? Barousse noted. Gulf oil production declined in 2010 as the government placed a temporary ban on drilling during the BP spill. The Obama Administration approved tougher, drilling-safety rules after the spill, affecting vessel operators in addition to oil and gas companies. After the drilling ban ended in October 2010, rig permitting remained slow into 2011 but has since improved. Barousse said, ?vessel owners are now enjoying some stability, which is a result of a strong market, meaning demand for vessels is greater than supply.? How much has the drilling pace improved? Seventy-six rigs were under contract in the Gulf on Sept. 24, versus 60 a year earlier, according to IHS Petrodata. The Gulf?s drilling- eet utilization rate was 66.1 percent in late September, above 51.7 percent a year earlier but below the global rate of 83.4 percent. Gulf Vessel Industry BeneÞ ts Gulf Vessel Industry BeneÞ ts From Offshore Oil Uptick in 2012 From Offshore Oil Uptick in 2012 Gulf Vessel Industry BeneÞ ts Gulf Vessel Industry BeneÞ ts From Offshore Oil Uptick in 2012 From Offshore Oil Uptick in 2012 Trends in the Gulf that began in late 2011 - including more rig permitting - Trends in the Gulf that began in late 2011 - including more rig permitting - crystallized in 2 crystallized in 2 012, and optimism grew with offshore-oil lease sales, creating 012, and optimism grew with offshore-oil lease sales, creating dividends for the vessel industry. dividends for the vessel industry. By Susan By Susan Buchanan Buchanan Above Image: Ocean Wave and Ocean Wind in production at Bollinger Marine Fabricators. October 201240 MNMNOct2012 Layout 32-49.indd 40MNOct2012 Layout 32-49.indd 4010/2/2012 9:59:32 AM10/2/2012 9:59:32 AM