Page 72: of Maritime Reporter Magazine (November 2016)

WORKBOAT ANNUAL “Our philosophy has been, and it always will be, that we don’t build vessels on speculation. We build vessels for the demand of our customers, and we partner with our customers to help determine their needs … and frankly we have been very successful at that.” – Robert Grune, SVP & GM, Crowley Petroleum Services “The market has tightened up,” but the are may variables that could conspire to not simply adding $2 million in capital

Market Fluctuations

Company’s such as Crowley that essence of what we do here at Crowley drive the price of oil back up, citing the costs to each unit because it’s fun.” take a long-view of the market are is to “run a safe, reliable ? eet; that is $60 per barrel as the level where “every- When it comes to emission solutions, arguably more resilient to ? uctuating our focus every day,” said Grune. “So one is going to be just ? ne.” Grune said that Crowley is leaving no the changes to the market affect us, but stone unturned, looking at everything markets. “Our philosophy has been, and we’re in a pretty good position over the from alternative engines to scrubbers to Challenges Ahead it always will be, that we don’t build ves- long term because of those relationships. When looking beyond 2017, the chal- LNG fuelled propulsion, a process too sels on speculation,” Grune re-empha- sizes. “We build vessels for the demand There is a base level of demand for U.S. lenges Grune sees are not altogether that is conducted in consultation with its of our customers, and we partner with ? ag Jones Act vessels that simply will unique to other maritime operators: customer base to arrive at a solution that our customers to help determine their not go away.” adopting a Ballast Water Treatment solu- is bene? cial for all.

While the market is tighter today than tion as well as deciding the way forward While technology is an obvious point needs … and frankly we have been very two years ago, when Grune looks across to comply with ever-stricter emission of study and investment, Grune insists successful at that.”

The focus of the market for the past the competitive landscape he sees older rules. that Crowley’s number one challenge, its two plus years has been a suppressed vessels in the U.S. ? ag market that could “The Ballast Water Treatment issue number one area of focus historically is oil and gas market, as effects of pricing be retiring. “When I took my last look is a huge issue, and it’s not cheap: for the quality of its mariners. “We don’t get pressures have rippled throughout the there wer about 22 vessels more than 20 one of our Tug/Barge units you’re talk- paid for sitting around doing of? ce work,

U.S. maritime market and indeed around years old that are in the market,” said ing about a $2 million investment to buy we get paid from moving oil from ‘point

Grune. “While there is no requirement and install the equipment,” said Grune. A’ to ‘point B.’ I’m not out there moving the world. Grune admits that the previ- ously booming shale oil market was one that those vessels have to be retired, as The key for Crowley, and in fact for all oil, I used to be a mariner, so I have an they get older it will be harder to get them maritime operators is ? guring how to empathy and concern for our mariners,” impetus for the construction of new ton- nage, particularly the six ships, and that approved by the oil majors, so they will recoup this massive capital investment said Grune. “We are focused on their the market has effectively turned with start dropping out of the marketplace.” cost. “How do we recoup that? I think training, their quality of life, and we want

Looking near-term to the coming year, it really comes back to the relationships to ensure they understand our safety cul- the precipitous drop in oil pricing fed in

Grune estimates that the market will be with our customers,” said Grune. “They ture. Our number one focus are our mari- part by OPEC’s refusal to reduce pro- “challenging in 2017,” but that there know these are requirements, and we are ners, they are the tip of the spear.” duction.

72 Maritime Reporter & Engineering News • NOVEMBER 2016

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