OSV market will change, Rigdon says

I ain’t saying nothin!

[B]OSV market will change, Rigdon says[/B]

By Ken Hocke 3/17/2016

Oil companies are becoming more efficient in the way they conduct their business, and offshore service vessel companies are going to have to do the same. That was the message that Matt Rigdon, chief operating officer, Jackson Offshore Operators, had for those in attendance at the recent WorkBoat Regional Summit “OSV Outlook for 2016 and Beyond” in Houston.

“The market has been massively overbuilt,” said Rigdon. “You’re going to start seeing consolidation. Some of the larger publicly traded companies won’t be around.”

Jackson Offshore focused on building larger boats that can bring more cargo to the desired offshore facility. The company took delivery of four 252’x60’x25.7’ OSVs (Breeze, Thunder, Lightning, Squall) from BAE Systems over the past two years. Designed by Guido Perla & Associates and recognized as one of WorkBoat’s 10 Significant Boats in 2015, the new OSVs have capacities that include 253,577 gals of fuel; 468,826 gals. rig water; 10,752 bbls. liquid mud; 2,130 bbls. methanol; 119,184 gals. potable water (cargo); and 10,200 cu. ft. dry bulk material. “All our vessels are on long-term contract,” Rigdon said.

There are a number of changes boat companies are going to see thanks to a shift in oil company expectations. In other words, oil companies will be spending less on contracted equipment. Couple that with an oversupply of boats and you get a very competitive industry going forward. “There will be a priority placed on safety,” he cautioned.

Personnel, the right personnel, could be a challenge when the market begins to turn around. “Some personnel are moving to another industry,” Rigdon said. [B][U]Those who will crew the boats in the future have to be able to troubleshoot when problems occur and be able to make repairs, all while being paid a smaller wage.[/U][/B]

Other ways to increase efficiency are to employ diesel-electric engines and be able to use battery backup during transit instead of bringing another engine on line, when that can be done safely. Main diesel-electric propulsion for the new Jackson Offshore OSVs comes from twin Caterpillar 3516C diesel engines, producing 2,100 kW (2,815 hp) at 1,800 rpm each and two Cat C32 diesel engines, cranking out 910 kW (1,220 hp) at 1,800 rpm.

[QUOTE=c.captain;181320]I ain’t saying nothin![/QUOTE]

That reminds me of my old tugboat days. . . troubleshoot and fix, no mechanics at the beach and all for less that what I would make on a ship. . . . and I liked it. . .

[QUOTE=cmakin;181327]That reminds me of my old tugboat days. . . troubleshoot and fix, no mechanics at the beach and all for less that what I would make on a ship. . . . and I liked it. . .[/QUOTE]

yes, engineers who actually have the knowledge and ability to troubleshoot and repair systems more complex than an all mechanical diesel engine. That fully eliminates at least 75% of the engineers working in the GoM now such as those who don’t know a VFD from their elbow!

plus the owners will need to actually put tools on their vessels.

Quit being an asshole, the recent hiring boom tipped the balance of the knowledge scale the other way. Albeit many have fled or been laid off but there is still a good pool of knowledgeable people down here. Having worked with or attended STCW classes with deep sea and tug people I’ve come to realize many mud boat people are just as intelligent and qualified. I haven’t had to carry a tool bag to work since 2001. Even Turdwater had fully stocked tool boxes onboard their vessels.

I’ve had to train and sign off at least half a dozen tug guys in the last few years. Two of my STCW classes were majority tug boat Chiefs. I can tell you from experience these guys aren’t as sharp as y’all make them out to be. I’ve also witnessed deep sea guys struggle with engine electronics and VFD troubleshooting. Quit making it seem like every OSV engineer is inept.

[QUOTE=Fraqrat;181348]Quit being an asshole[/QUOTE]

asshole? moi?

Quit making it seem like every OSV engineer is inept.

ok, maybe the 75% is hyperbole but I speak from my own experience with some particular “engineers” and seeing OSVs towed into Fourchon only to have some shore technician change a fuse in a control system and the boat leave again is 30minutes. Both OCLLC vessels

As far as publicly traded companies in the US, only 1 is in trouble. HOS has cut pretty much everything and I believe most of their new boats are working, Harvey investors have too much invested already to let them fail. The rumor was they’re going to keep throwing money as long as Shane doesn’t keep going crazy. If he goes crazy, I’d guess they’ll just bring in a new face.

At 252 ft, those vessels get lost in the mix. They’re not big, especially the back deck, and they don’t haul an impressive amount below deck. With that said, if the price is right, they will work. Yes, I know all the vessels are on charter.

With that being said, WHEN the industry turns around, who do they think they’re going to hire when they tell everyone were going to make you do more for less? I’m sure the bidding war is going to happen again and all this is out the window (just like ‘safety’ after the Deepwater blowout) so prices will go up. But the Bayou boys forget that cheap labor isn’t good and good labor isn’t cheap. Combine that with how they treat the crews overall… something will have to change.

would that be TDW?

HOS has cut pretty much everything and I believe most of their new boats are working,

no question that HOS is good to go for the long term

Harvey investors have too much invested already to let them fail. The rumor was they’re going to keep throwing money as long as Shane doesn’t keep going crazy. If he goes crazy, I’d guess they’ll just bring in a new face.

wouldn’t that be nice

With that being said, WHEN the industry turns around, who do they think they’re going to hire when they tell everyone were going to make you do more for less? I’m sure the bidding war is going to happen again and all this is out the window (just like ‘safety’ after the Deepwater blowout) so prices will go up. But the Bayou boys forget that cheap labor isn’t good and good labor isn’t cheap. Combine that with how they treat the crews overall… something will have to change.

I expect no changes from the Joe Bosses of the GoM…they are too set in their dirty ways and I expect the mariners to make no demands for changes when there is a recovery. They have proven themselves to be a herd of sheep easily led by the Bosses dogs snapping at their heels

the pity is that when the turn around does occur, that will be the very best time to make demands for better treatment. oh well…I have learned to expect very little these days

[QUOTE=KrustySalt;181354]With that being said, WHEN the industry turns around, who do they think they’re going to hire when they tell everyone were going to make you do more for less? I’m sure the bidding war is going to happen again and all this is out the window (just like ‘safety’ after the Deepwater blowout) so prices will go up.[/QUOTE]

That’s exactly what I was laughing about when I read this article. He talks big now but as soon as drilling starts blowing up again and the oil companies are begging for boats the OSV operators with stacked boats will be driving up rates to get licensed crew to come work for them. No one will stay at Jackson when Harvey, HOS, and Chouest are paying $250 a day more so Jackson will increase their wages to match.

Jackson offshore has no room to talk. They aren’t succeeding because they are business savvy. Some us know deep down why Jackson offshore has an immediate contract once they build a vessel. Probably the only GOM company with 100% utilization.

No secret. They are a minority company.

[QUOTE=justaboatdriver;181378]Probably the only GOM company with 100% utilization.[/QUOTE]

Because they only have 4 boats. Also because they got them on long term contract before everything went to shit.

[QUOTE=KrustySalt;181354]As far as publicly traded companies in the US, only 1 is in trouble. HOS has cut pretty much everything and I believe most of their new boats are working, Harvey investors have too much invested already to let them fail. The rumor was they’re going to keep throwing money as long as Shane doesn’t keep going crazy. If he goes crazy, I’d guess they’ll just bring in a new face.

At 252 ft, those vessels get lost in the mix. They’re not big, especially the back deck, and they don’t haul an impressive amount below deck. With that said, if the price is right, they will work. Yes, I know all the vessels are on charter.

With that being said, WHEN the industry turns around, who do they think they’re going to hire when they tell everyone were going to make you do more for less? I’m sure the bidding war is going to happen again and all this is out the window (just like ‘safety’ after the Deepwater blowout) so prices will go up. But the Bayou boys forget that cheap labor isn’t good and good labor isn’t cheap. Combine that with how they treat the crews overall… something will have to change.[/QUOTE]

[QUOTE=Capt. Phoenix;181363]That’s exactly what I was laughing about when I read this article. He talks big now but as soon as drilling starts blowing up again and the oil companies are begging for boats the OSV operators with stacked boats will be driving up rates to get licensed crew to come work for them. No one will stay at Jackson when Harvey, HOS, and Chouest are paying $250 a day more so Jackson will increase their wages to match.[/QUOTE]

Agreed. The oil companies won’t be able to spend money fast enough when things turn around. And the HOS’, ECO’s, HGIM’s, etc of the world are licking their chops waiting for it to happen.