Page 8: of Marine News Magazine (September 2020)

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EDITOR’S NOTE

The start of this year brought a healthy amount of optimism for offshore oil and gas as it began to look like the industry could ? nally shake that stubborn prolonged down- turn that has been following it around for years.

Then the 2020 roller coaster ride began.

In March, a Russia-Saudi Arabia oil price war, together with the rise of COVID-19, sent oil prices tumbling and wreaked havoc on the industry and the global economy.

By April, the spat and a signi? cant demand reduction brought on by the coronavirus pandemic brought oil futures below zero. Traders were paying to of? oad contracts for oil they simply could not ? nd room to store.

It’s somewhat remarkable that today, after agreements on production cuts between

Russia and Saudi Arabia, and modest demand and price stabilization as the world con- tinues to grapple with the pandemic, that oil is in the $40-45 range.

But there’s no mistaking the damage that has been done, and it’s expected the re- bound for oil? eld services providers will take several years at least. However, there are other opportunities out there. Many suppliers are looking to diversify and leverage some key oil and gas capabilities to replace major chunks of revenue by servicing the renewables markets.

Yes, oil and gas will continue to be a key piece of the global energy equation for many years to come. But renewables have been gaining ground and continue to gather momentum as time marches on. Even the oil majors are upping their involvement in renewables. In fact, this shift has been underway long before the recent oil price woes, and offshore wind investment in Europe is on pace to surpass offshore oil and gas in the near future.

Here in the U.S.—where marine and offshore oil and gas expertise is abundant—the rise of a new offshore wind industry presents an especially large opportunity for new and established players to gain business. And that’s cause for optimism.

Eric Haun, Editor, [email protected]

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September 2020 8 MN