Odyssea Marine - Offshore Positions
that page hasn’t been updated in a few years.
This week coming I have a Captain from ECO staying here to take a couple of classes at the training center in Galliano.
He is bringing his wife and child.
Thought I would remind mariners who are coming down to take classes that I still offer a discounted rate of $70/night.
This includes a deluxe continental breakfast consisting of bagels, toast, fresh fruit, yogurt, cereal bars, protein bars, ham and cheese muffins, grits, oatmeal, banana bread/cinnamon rolls, cereal and milk, juice, coffee, tea, bottled water, etc.
If I can be of help to any of you in providing nice, affordable lodging while going to school in the area, please email me at firstname.lastname@example.org, PM, or call (985) 537-6773
Wishing you all the very best!!!
Claudette L. Pitre
A Chateau on the Bayou B&B
3158 Hwy 308
US Rig Count Declines by 7 this Week to 737
Offshore supply vessel owners face bankruptcy with drop in drilling rigs
here is the text of that
[B]Offshore supply vessel owners face bankruptcy with drop in drilling rigs[/B]
Author: Bloomberg | Date created: 09/12/2015
The relatively unheralded corner of the oil sector that sends supply boats out to offshore oil rigs may see bankruptcies as the worst crude market downturn in decades spreads.
More than half of the public companies in the offshore supply-vessel industry face a high probability of restructuring or bankruptcy, according to research released Tuesday from the consulting firm AlixPartners.
The vessels are a lifeline to the rigs, hauling everything from pipes to food from shore. The supply boats are custom-made for the oil industry and depend on the rigs for work, Esben Christensen, a director at the firm’s maritime practice in New York, said Monday in a phone interview.
“If the rig market is down or not doing well, it’s very, very difficult to find employment for this type of asset anywhere else,” Christiensen said. “They really go hand in hand.”
Similar to the offshore rig industry, where new rigs continue to be built amid a slump in demand for the equipment, the vessels are facing a glut. There are now more than five supply vessels for each offshore drilling rig, according to AlixPartners. That’s up from roughly three vessels per rig in 2008.
The offshore industry is facing the double whammy of falling demand from steep costs at the same time that new rigs keep rolling out of the shipyard and add to the global glut of equipment. All that is occurring during the worst crude market downturn in decades. West Texas Intermediate crude, the U.S. benchmark, is down 40 percent in the past year.
Oil prices may remain lower for longer than many expect after the Organization of Petroleum Exporting Countries said Dec. 4 that it was essentially lifting its production target for crude. WTI fell 5.8 percent to $37.65 a barrel Monday on the New York Mercantile Exchange.
The amount of debt the companies carry compared with earnings before interest, taxes, depreciation and amortization, which is known as leverage, climbed over the year ended in June, according to AlixPartners. Sustained debt that’s more than four times Ebitda is often a precursor to restructuring or bankruptcy, according to the firm, which looked at 33 publicly traded companies as part of the study.
Transocean Ltd., the world’s largest supplier of offshore drilling rigs, has said the challenging offshore market is expected to last into 2017.
and just to clarify my position before Fraqrat gets all shitty with me. I am happy that the owners are facing what they are because I do not like them nor their employment practices. I am not happy with the fallout to the mariners. I do not like any worker to lose his job or to have his pay cut. The only thing I would hope is that the GoM mariners are getting their eyes opened now by the draconian tactics used by Joe Boss in his trying to save his ass for overextending himself. If the workers know that Joe cares nothing for them and how willing Joe is to throw the mariners under a bus, then when there is a recovery, the mariners might just not fall so hard for Joe’s promises which we all know are nothing more than BALDFACED LIES!
[QUOTE=c.captain;175751]here is the text of that
and just to clarify my position before Fraqrat gets all shitty with me. I am happy that the owners are facing what they are because I do not like them nor their employment practices. I am not happy with the fallout to the mariners. I do not like any worker to lose his job or to have his pay cut. The only thing I would hope is that the GoM mariners are getting their eyes opened now by the draconian tactics used by Joe Boss in his trying to save his ass for overextending himself. If the workers know that Joe cares nothing for him and how willing Joe is to throw the mariners under a bus, then when there is a recovery, the mariners might just not fall so hard for Joe’s promises which we all know are nothing more than LIES![/QUOTE]
The fallout has a domino effect on everything else, to a certain extent. There is now a surplus of qualified, credentialed mariners. Hard to keep a certain standard on wages when so many are out of work. If I had no other options and I could either continue to pay my rent or not I would choose to work for wages I was getting ten years ago if it meant keeping the lights on. Gotta do what you gotta do…
What’s the lesser of two evils? union or non? I suppose having a locked in contract provides some protection, but no one is ever completely safe. I had a union job in the past that was so crooked it made ‘joe boss’ look like a saint.
this is from the Autumn 2015 Newletter put out by the vessel broker Marcon International
The pressure is certainly building and it appears only a matter of time be-fore it reaches a level of critical mass.
The offshore industry is about eight months into a prolonged downturn after Saudi Arabia unilaterally decided to keep the oil spigot open in the hope of gaining market share. This combined with strong output from US shale and Canadian sands has led to a glut of crude across the globe leaving oil prices languishing. There was a glimmer of optimism in June as oil prices started to creep up again, but this was quickly dampened by early August as prices were back to their six year lows of below $50/bbl.
Simplistically put, many OSV owners and operators rely on drillers keeping their rigs working, who in turn rely on oil companies spending vast sums of money to continue exploring for yet more oil with additional sums spent on field development and production. The oil companies in turn rely on selling said oil for higher prices to keep the whole finely tuned economic engine running. Unfortunately, all of these parties are suffering these days due to the current low price of crude oil.
In the Gulf, OSV tonnage by the veritable mile is now tied to the docks, and when there isn’t enough room quayside, many have dropped anchor out in the bay or up the nearest bayou. Some OSVs are in warm lay-up hoping for work while others are laid up “cold-iron” with all power off and doors chained and padlocked. Revenues are down with CFOs battling to make ends meet. Share prices have slumped by over 50% in some instances and banks and investors are getting nervous as covenants and loans come due.
In Europe things are little better. One broker is now publically reporting the increasing number of vessels in lay-up. By a very rough calculation, over $1bn of high tech AHTSs and PSVs are now quietly gathering dust. Bourbon reported in early August that in the first half of the year they had laid up over 25 vessels, or about 10% of their global fleet according to Sea-web.
Adding to the pressure is the overhang of newbuilds ordered in the 2012 - 2014 period which are still being delivered. At least for the US, this is due to a much anticipated increase in demand post-Macondo. Currently IHS–Petrodata lists over 510 deepwater OSVs worldwide either on order or under construction as of July 2015. Some orders are being delayed or cancelled outright; some deliveries are ending up as fleet replacements as older units are scrapped, but a portion of the newbuildings will further increase the overall fleet size worldwide.
Given that the struggling oil price is the main driver for the OSV market, the question is how and when will the current oversupply in the market get taken up?
The current prognosis by most is not one of optimism for the remainder of 2015 and many are now saying that 2016 could be bleak as well. The question looking further out is whether this is part of the typical boom-bust cycle we continually see in all areas of shipping or maybe the slow start of a much wider structural upheaval across the industry. According to OPEC, long term indicators suggest that demand for oil and gas are expected to rise for the next 25 years but at unequal rates. However they also predict that the world will be producing more oil than it can consume for the next couple of years.
For the industry to realign, we expect to see some rationalization through accelerated scrapping regimes, bankruptcies, mergers and acquisitions and a drastic slowdown in newbuilding orders. This means extremely lean times for shipyards ahead, similar to the mid-late 1980s after North American OSV deliveries plummeted from 301 in 1981 to about nine in 1986. “Déjà vu” as recognized if you read Marcon’s Winter 1987 newsletter article “Offshore Petroleum Forecast”.
In the past, it has taken time after oil prices rebound for projects to come back online and to allow drilling operations to resume. This is what is necessary before we can revitalize the OSV market. In the meantime, there are many vessels for sale, both openly and privately. Prices continue to fall as owners need cash flows now. As in previous cycles, there will be winners and losers. The question ultimately becomes who will be left standing this time when oil prices go back up?
I cannot agree more…this is 1986 all over again only this time with fewer big players each having borrowed a tremendously greater amount of money to build almost as many vessels on spec but this time the boats are infinitely more complex and expensive.
[QUOTE=Ctony;175754]The fallout has a domino effect on everything else, to a certain extent. There is now a surplus of qualified, credentialed mariners. Hard to keep a certain standard on wages when so many are out of work.QUOTE]
Currently a surplus. The beginning of 2017 will thin the herd dramatically I think. You have the requirements to meet the extra classed required for wheelhouse and engine-room kick in. Those classes are expensive and time consuming if you are working… not sure how they stack up if you are un-employed. Also, the new requirements for classes to upgrade will also, at best, slow the accent to the top. Not very enticing to spend 15,000 and several weeks on classes for your next upgrade whether you are oil field trash or not. There where still an abundance of trade restricted license personnel in the oil patch. Granted those 1600/3000 license will work for tugs and such, but overall I think the coming years will be a shortage and when the next oil boom (spring 2017) hits, there will be a great fishing expedition with big $$ to find them and lure them back to the oil patch for one last boom.
Nope there will be a more measured approach and the money won’t be flowing fast and heavy again. If WW3, ISIS or whatever wreaked havoc enough to drive up oil prices right now it would take 2 years for all of the service companies to be whole again. That would be just to get debt down and get the company back in the black. We won’t ever see a mud boat captain/chief getting $900-$1000 a day again. They probably wouldn’t offer that much to a guy with a UL license running a big MPSV. There will probably be another boom several years down the road not to many will come running tho. It had been to long since the last gold rush down here for the young guys to remember the dark times afterward. Now if/when things turn around they will all have the bitter taste of 50% paycuts and 2/1 schedules to curb their enthusiasm. Obviously the paycuts hurt us to the bone but the talent drain is gonna be hard to recover from. This happens just when the vessels were getting more advanced and the need for young sharp engineers was increasing. I can tell you being a hawsepiper at 42 I have to keep reading and studying to stay with the times. I ask the academy guys for textbook references all the time. It blows me away how smart these guys are and I wanna kick myself for not going to an academy. About the only thing I knew at 22 was how many hours I could nap between mud circulations on the way to the rig.
Well said fraq. If I could do it over again I would have went to an academy too. I had some people telling me I should do that, but in my late teens/early 20s my biggest concern was how I was going to blow my paycheck when I got off.
Experts: Long-term benefits ahead for LA after crude oil ban lifted
Updated: Dec 18, 2015 10:17 PM CST
[QUOTE=c.captain;175758]this is from the Autumn 2015 Newletter put out by the vessel broker Marcon International
I cannot agree more…this is 1986 all over again only this time with fewer big players each having borrowed a tremendously greater amount of money to build almost as many vessels on spec but this time the boats are infinitely more complex and expensive.[/QUOTE]
Thank you for posting the article from Bob Beagle’s newsletter. His articles are always very well done and present a longtime insider’s view of the market. It also reminds me to check out what he is now saying about the tugboat market, which is his main focus.
[QUOTE=Ctony;175789]Well said fraq. If I could do it over again I would have went to an academy too. I had some people telling me I should do that, but in my late teens/early 20s my biggest concern was how I was going to blow my paycheck when I got off.[/QUOTE]
Yeah, LOL, that and getting laid. But a life well lived is a far bigger measure than any degree. I went to an academy, and I hope my life was lived well. I’ve tried. Some times I failed, miserably, particularly with people. Other times I’ve tried and succeeded.
The best engineers I know have no academy at all. Try motor cycle mechanics, motor heads and just plain old guys that like working on stuff to make it work. They work for me, an I’m proud to have them, over any one else. The challenge is to find big enough challenges for them …
The Details On The First US Barrel Of Oil To Be Exported
Oil Prices are Going to Rebound in 2016
They said that about 2015 also! Be lucky to see it go up in 2017!
Baker Hughes Hiring Now.http://www.gulfjobcareers.com/baker-hughes-recruiting-now/
Hi Everone! I thought about the advice given to me and deferred my visit to Louisiana planned for last October till now . I drove long haul truck and continued to pursue a claim against my old union. So I saved up money to visit Louisiana and the employers. Well I have followed the news on the price of oil but have not been actively reading the forum. The first thing I see on “new posts” is a bunch of rancor about ECO. I will read everything and get caught up. So lay it on me friends. How grim or not grim is it to pick up any entry level work at ECO right now? I have received good advice and good wishes here. Thanks Everyone
Don’t waste your time