Page 56: of Maritime Reporter Magazine (March 2018)

world yearbook

Offshore © Danial/Adobe Stock

Statistics & Analysis Courtesy of VesselsValue.com

Offshore vessel orders have been se- in new orders should materialize. The MODU segment has been the The age pro? le of the ? eet is young, verely depressed following the oil price OCV activity has been slower as well, hardest hit by the oil price decline, with which will limit the incentive to send ships collapse that began in in 2014, but rising although the downwards trend in orders no new orders placed since 2015. Inter- to the recyclers. Asset values for OSV re- oil prices could change this. is not as pronounced as that seen in the est in drilling units will remain isolated main depressed, although they appear

The OSV market is affected by the market OSV market. This is a much smaller to custom projects required for speci? c to be at their ? oor level. If the rise in oil for offshore exploration, which is driven by market to begin with but includes a high- ? elds. There are multiple units warm and prices translates into increased demand for the price of oil. The growth in land-based er percentage of vessels not directly tied cold stacked around the world waiting to units, the asset values should appreciate. shale oil production from the US and other to oil ? eld exploration. return to service should rates ? rm. areas has depressed demand for scouting for new traditional oil ? elds. Order inter- est is expected to remain on a replacement basis, but the market is unlikely to see a strong rebound in replacement orders until demand for offshore oil production increas- es. This could be sooner than some expect.

The recent run up in oil prices suggests that a light may be on the horizon for re- turns. The Brent benchmark is now at its highest level since December of 2014, at almost $70/b. There was an increase in

OSV orders during the “dead cat bounce” in oil prices back in early 2015. Market participants have been gunning shy since then, but the tide may be turning. Once asset values begin to appreciate interest 56 Maritime Reporter & Engineering News • MARCH 2018

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