We remember during the boom times you offering your opinion on the overbuilding of deepwater rigs, it was indeed insane. Fortunes were made by the executives, shipyards and a small number of mariners who moved into management positions. Belatedly this is all falling to pieces. Chapter 11 is just a way for the bond holders to save a few coins and not look so stupid for a little while. If they were really smart they’d Chapter 7 the whole mess and take their remainders on to a better investment. But pride…
Yes there are going to be variables. For mariners who land these jobs, as long as the pay is commensurate with the rest of the industry, it should be a pretty sweet gig. It’s a clean industry all around and they get to sleep in their own bed at night.
indeed but the market to sell these ships as scrap is itself depressed and there always is some hope that a few years from now the world may look very different than today where there just might be a market for these ships to find work (albeit at low dayrates) Without big debt service payments, these drillers might be able to turn an operational profit and positive cash flow giving the new shareholders the ability to get out with some recoup of what they originally invested. As long as they are not required to constantly and forever keep pumping in cash to keep the companies they now own afloat, it makes some sense to see what happens in a couple of years? it is that happens thought if there is no change in the market or it gets worse and these companies run out of cash or their revolvers (credit accounts the can draw on) are maxed out and nobody will grant them even a nickel? I see the company with the smallest backlog and weakest balance sheet dying first quickly followed by several others as once the first domino falls will fall the rest. We shall see this happen sometime in early 2022 I predict
There may be some work in the future but I don’t believe there will be shareholders, as in owners of stock. The former Vantage Drilling now known as VTGDF is the future for some of these companies. The bond holders are running the company while praying and the stock is worth $.0036/share.
Ouch. Never was a fan of bonds, any kind.
Not if they are on a SOV. Some of those stay at sea for 4 weeks or more at a time.
FRCs bring technicians to/from the various turbine towers every day, or the SOV use their W2W telescopic gangway to get them there.
What you are envisaging is wind farms, where CTVs bring Technicians from shore in the morning and back in the evening, which is used in some near-shore wind farms.
1 Like
It’s what I envisage the Dominion field will be.
Lee_Shore, am hoping the same thing, our guys get some long term employment running short trips.
Again. That is ONE offshore wind “farm” (if you can call it that with only two turbines)
There are a lot more planned in US waters, so hopefully this one and the five wind mills off Block Island will not be the end of it in the US.
Meanwhile, there is a wast international market opening up for marine services in other parts of the world. Open to those who have the technology, skills and state-of-the-art equipment to compete in it.
See this thread:
What happened to the American entrepreneurial spirit and leadership? Creating new “Social Media” isn’t enough to stay on top…
Moved to Wall St. Doing “financial engineering” now.
1 Like
Drilling Contractor gets into Offshore Wind technology:
Odfjell is in a different class. Not a very typical drilling company. They have capital to work with. I can only imagine, but I bet they can even afford to have motormen.
moved to Washington, where the largest private jet airport in the world is along with the largest Ferrari and Lamborghini retailers are.
and Washington makes?
Billions of dollars. Lobbying, influence peddling, bagmen, 527 corps, there’s billions to be made. OpenSecrets has the stats on the revolving door. Politics is a business to make money. A kleptocracy some might call it.
1 Like
So what else is new?
At some point Exxon, Chevron, and American majors have to jump into this. With Exxon being kicked out of the S&P 500, their board might start to roll heads. Exxon being Texas based, and Texas being the largest wind producing state, they have plenty of competent people to poach. Not to mention, the majors own a lot of real estate with existing infrastructure to charge your car.
The Americans are not totally out of it. Look up Hannon Armstrong Sustainable Infrastructure (HASI) and the turbines the GE has produced. Diversification into electricity production could become more important for American companies with the race to dominate electric vehicles. China wants to be the biggest electric vehicle producer in the world. Their strategy is to totally bypass being competitive with fossil fueled vehicles and jump to electric.
Dominion Power has done their homework.
1 Like
Yes. They partnered with Ørsted who have the experience in offshore wind power and brought in expertise and technology needed to do the installation job safely and efficiently.
1 Like
I was in their local equipment yard about 2 years ago. They had towers set up to test wind generators of various shape. I was impressed by some of the radical designs they were testing which indicated to me they were taking wind power seriously.
1 Like
As I said before, they have leased a large staging area at at PIT near the railroads where the Norwegian ships docked for a bit. Also a much smaller area near Lesner bridge near where the Va Pilot boats operate.