Page 32: of Marine News Magazine (September 2018)

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OFFSHORE OUTLOOK

Credit: Harvey Gulf down from 2011-2013 levels, but still exceeding those for upward move was clear, Rune Olav Pedersen, the CEO of nearby consumption. All stockpiles were ? lling up to the Oslo-listed seismic exploration specialist PGS, told inves- brim; and “? oating storage” buoyed hires for large tankers. tors: “Faced with a lower oil price compared to 2014, our

But with low nearby prices portending a seemingly bleak customers have changed their priorities.” future, offshore exploration was put on hold after the price The production and inventory data provide the back- plunge. The drop in E&P spending was dramatic, with drop for this story. Statistics from the U.S. Energy Infor-

Alix Partners writing (in Spring 2017), “… the total global mation Administration (EIA) peg overall world oil pro-

E&P spending on OSV’s has declined from USD $18.1 duction at 90.78 million bbl /day (mbd) in 2012, with a billion in 2014 to USD $14.8 billion in 2015 and USD miniscule rise up to 91.28 mbd in 2013. The following $11.9 billion in 2016. That is a staggering 34% decline in two years saw production surge dramatically to 93.79 mbd just two years. Rates are down 60-65% in some markets, in 2014 (a gain of 2.51 mbd) and 96.7 mbd 2015 (a gain and utilization is down 40%.” In early 2018, even as the of 2.91 mbd). Inventories swelled during this time; data

September 2018

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