[QUOTE=Johnny Canal;150454]What I would really like to know from those who have been down here for a long time and have weathered multiples of these price per barrel downturns, drilling moratoriums, etc., is this:
Is it roughly the same cycle of explosive wages and benefits and then benefits reductions, wage cuts, lay-offs, etc. every time? Is it a get it while it’s hot and damn the consequences down the road (even though we the company have been through this before) mentality?[/QUOTE]
Remove the word “explosive” and the answer is yes. Wages and benefits have always gone up and down with the price of oil. Wages increase, bonuses are paid handsomely, everyone is happy, followed by 401k match gets reduced, wages go down, promotions and ability to pull straight time are nixed.
This is the highest and fastest wages have ever skyrocketed so it would stand to reason it will eventually be followed by the hardest fall. The bean counters on Wall Street would look at our industry and use the term, “Market Correction.”
[QUOTE=AB Murph;150507]
Engineers will be in demand. If you work hard as an QMED, the coordinator knows it. If you get your lic. you will be in a training spot and they will find you a spot as 3rd somewhere when you get signed off. Never not seen this happen. By this I mean a QMED who got their licenses and only knows how to trouble shoot and fix stuff like an Academy grad didn’t bust their ass and doesn’t fall under the “[U]WORKED HARD [/U]as a QMED” category.[/QUOTE]
I am confused (but that is not uncommon for me). Are you saying that Academy grads don’t bust their asses and know how to trouble shoot and fix things?
[QUOTE=tengineer1;150514]Ice breaker or ice class hull?[/QUOTE]
Sorry, only two ice breakers.
“The building program also includes two new icebreakers Arctic service, which are being designed. The boats will mark the fifth and sixth ice-breaking vessels in the company’s fleet, making Chouest the largest designer, builder, owner and operator of ice-breaking vessels in the U.S., the company says.”
[QUOTE=cmakin;150521]I am confused (but that is not uncommon for me). Are you saying that Academy grads don’t bust their asses and know how to trouble shoot and fix things?[/QUOTE]
[QUOTE=Saltine;150004]2015 will be a blood bath for the shelf operators in the GOM. All of the operators with vessels in the 110’ - 200’ range and DP-1 will be in trouble for the next 6 plus months. We’re already seeing 170’ DP-1’s going for as low as $3,00/day and others are being stacked daily due to the low demand for vessels. I feel bad for a lot of the mariners in this class of boat as lots of people will probably be unemployed in the near future.[/QUOTE]
Unless you are specifically speaking of “all the operators” with new vessels, I don’t believe I can agree with your statement. As with some of the other doomsday projections of the shelf on this thread. I see a lot of consolidation happening on the shelf with 3-4 players buying up and doing lots of work to get these new acquisitions up and running with a more streamlined and cost effective approach. Of course there will always be the dumb shit analyst of wall street that tend to make people adjust the market with frantic sell outs, (seems like we actually have some wanna be wall streeters here in this thread, amazing how they turned out boat trash instead). By the bye it’s a good time to buy a little TransOcean, Seadrill & such here in the next few months for your portfolio. The small Mom & Pops with these 100 to 200’ vessels that they didn’t wager the farm on are in much better position to hold on than these medium to large companies that are just trying to keep up with the Mr. Garys IMO. Might even be more appealing to the shelf companies to pick us up @ $3,500/day versus the new giant crew boats that can’t make their note and pay the crew @ that rate, not to mention haul that much more equipment or water than we can to make it feasible. Spent August, Sept., Oct, in Cameron and Fresh Water City and Martin’s docks (albeit small and derelict) in both places were bustling and lots of new construction + added wharfage being put in place. Spot work and steady for 90 days for 2 different companies all doing work on new assets in the area. Now back in the Fourchon and my little company actually had on us on two jobs in the same 48hr period pulling double day rate. Yep I see a lot of boats pushed up, but noticing less of us old 2nd hand crew boats in the mud the last 3 weeks, same with the older utility and supply vessels, seems to be the pricey ones complaining the most. Though I do appreciate the concern and am sure some of it is warranted, I have been able to pull some straight time due to my little company’s 7 boats (all crewboats, only one has a contract) working steadily through this downturn. Shoot I’ve been able to pull all the time I want due to others wanting off for the holidays, and believe you me I’m pulling it to pad the coffers in case this thing gets really drawn out. Of course I could always go back to yachts… nawh…
[QUOTE=AB Murph;150507]I don’t know anyone working for ECO that isn’t getting paid for the position they are in. Of course I don’t know everyone in this company but I don’t know or heard of any master getting Master pay who is sitting in the 4th spot, they get 4th pay. Don’t know of anyone who just got their lic. getting 4th pay, all get training pay. They continue to receive training pay until signed off and then only get a $50 bump until a slot opens for them to move into. HEARD of a few who got their Lic. for the bridge and still received AB pay because there was not a spot available in their division to move up to the wheelhouse, This was a year ago.
I don’t know how the down turn has changed something that has always been the norm from what I have seen. Only thing I have seen is our division does not allow working over anymore. Until just 6 months ago if you wanted to work over they allowed 2 extras on the boat and they received their normal pay, not anymore.
Engineers will be in demand. If you work hard as an QMED, the coordinator knows it. If you get your lic. you will be in a training spot and they will find you a spot as 3rd somewhere when you get signed off. Never not seen this happen. By this I mean a QMED who got their licenses and only knows how to trouble shoot and fix stuff like an Academy grad didn’t bust their ass and doesn’t fall under the “[U]WORKED HARD [/U]as a QMED” category.[/QUOTE]
Well, Looks like I stepped on my PP. The ol John Conlee song. " She can’t say that anymore" comes to mind. Saw a text (Not an E-mail) and it looks like all the training pay is in hiatus. Looks like you will have to fill that spot to get paid. It was a nice thing though that ECO did while in training.
[QUOTE=roundabout;150586]Unless you are specifically speaking of “all the operators” with new vessels, I don’t believe I can agree with your statement. As with some of the other doomsday projections of the shelf on this thread. I see a lot of consolidation happening on the shelf with 3-4 players buying up and doing lots of work to get these new acquisitions up and running with a more streamlined and cost effective approach. Of course there will always be the dumb shit analyst of wall street that tend to make people adjust the market with frantic sell outs, (seems like we actually have some wanna be wall streeters here in this thread, amazing how they turned out boat trash instead). By the bye it’s a good time to buy a little TransOcean, Seadrill & such here in the next few months for your portfolio. The small Mom & Pops with these 100 to 200’ vessels that they didn’t wager the farm on are in much better position to hold on than these medium to large companies that are just trying to keep up with the Mr. Garys IMO. Might even be more appealing to the shelf companies to pick us up @ $3,500/day versus the new giant crew boats that can’t make their note and pay the crew @ that rate, not to mention haul that much more equipment or water than we can to make it feasible. Spent August, Sept., Oct, in Cameron and Fresh Water City and Martin’s docks (albeit small and derelict) in both places were bustling and lots of new construction + added wharfage being put in place. Spot work and steady for 90 days for 2 different companies all doing work on new assets in the area. Now back in the Fourchon and my little company actually had on us on two jobs in the same 48hr period pulling double day rate. Yep I see a lot of boats pushed up, but noticing less of us old 2nd hand crew boats in the mud the last 3 weeks, same with the older utility and supply vessels, seems to be the pricey ones complaining the most. Though I do appreciate the concern and am sure some of it is warranted, I have been able to pull some straight time due to my little company’s 7 boats (all crewboats, only one has a contract) working steadily through this downturn. Shoot I’ve been able to pull all the time I want due to others wanting off for the holidays, and believe you me I’m pulling it to pad the coffers in case this thing gets really drawn out. Of course I could always go back to yachts… nawh…[/QUOTE]
The problem is that there are 2 large users of boats on the Shelf: Chevron and Fieldwood. Chevron has a hand full of vendors they use and Kilgore Marine does all of the brokerage for Fieldwood. Sure, you can work thru Kilgore and stay somewhat busy but you are not in control. You’re having to rely on your competitor to give you work. That’s not a good model to base your business on. Fieldwood has said that they don’t have much on the books on the shelf for 2015 at this point due to low oil prices.
The shelf market is always slow in the winter but this year has been different.
[QUOTE=Saltine;150612]The problem is that there are 2 large users of boats on the Shelf: Chevron and Fieldwood. Chevron has a hand full of vendors they use and Kilgore Marine does all of the brokerage for Fieldwood. Sure, you can work thru Kilgore and stay somewhat busy but you are not in control. You’re having to rely on your competitor to give you work. That’s not a good model to base your business on. Fieldwood has said that they don’t have much on the books on the shelf for 2015 at this point due to low oil prices.
The shelf market is always slow in the winter but this year has been different.[/QUOTE]
my point was that the Big companies have jmped the gun and over built, Mom and Pops can afford to hang on, time will tell. Got to go make another run…
Talos and Energy XX1 are busy acquiring many shelf fields too.
According to this article, Fieldwood has 600 + structures in the GOM, that’s a lot of boats:
[QUOTE=roundabout;150694] my point was that the Big companies have jmped the gun and over built, Mom and Pops can afford to hang on, time will tell. Got to go make another run…
Talos and Energy XX1 are busy acquiring many shelf fields too.
According to this article, Fieldwood has 600 + structures in the GOM, that’s a lot of boats:[/QUOTE]
the thing about the shelf is that the fields are now producing little compared to when they first went online decades ago. the costs to keep those marginal wells in production is justified when prices are high but when they tank as now, there is little reason to keep them going. When shelf fields are shut it, the need for vessel support falls off to near zero. It doesn’t matter if the shelf vessel owners are not up to their eyes in debt, if there is no demand for their vessels, the charter rates for the boats that do work will be lower and the jobs fewer and father between.
if anything, the deepwater will likely be what doesn’t get shut in because the operators can’t afford to reduce production.
[QUOTE=c.captain;150704]the thing about the shelf is that the fields are now producing little compared to when they first went online decades ago. the costs to keep those marginal wells in production is justified when prices are high but when they tank as now, there is little reason to keep them going. When shelf fields are shut it, the need for vessel support falls off to near zero. It doesn’t matter if the shelf vessel owners are not up to their eyes in debt, if there is no demand for their vessels, the charter rates for the boats that do work will be lower and the jobs fewer and father between.
if anything, the deepwater will likely be what doesn’t get shut in because the operators can’t afford to reduce production.[/QUOTE]
You are correct. I have knowledge of 170’ DP-1 boats awarded work at rates below $3,500/day right now. Can’t see how anyone can make money at that price point, with or without debt. And even though Fieldwood has 600 or so platforms that included unmanned structures as well. A field boat can support 5-10 production platforms, or more, depending on their needs. The shelf market is saturated with boat owners looking to make quick money. It will always be this way because the level of knowledge, personnel and money is low compared to DeepWater, IMR, subsea, etc…
Port Fourchon is Louisiana’s southernmost port, located on the southern tip of Lafourche Parish, Louisiana, on the Gulf of Mexico. It is a sea port, with significant petroleum industry traffic from offshore Gulf oil platforms and drilling rigs as well as the Louisiana Offshore Oil Port pipeline. Fourchon’s primary service markets are domestic deepwater oil and gas exploration, drilling, and production in the Gulf of Mexico.
In an odd twist of fate, FX Networks broadcast on June 7, 2005 the docudrama Oil Storm, which first depicted a fictional Category 4 hurricane named “Julia” hitting Port Fourchon in September 2005. In the fictional account, the port was severely crippled, but in reality Port Fourchon has been up and running mere days after major storm events.
Port Fourchon was damaged by Hurricane Lili in October 2002. It did not take a direct hit by Hurricane Katrina in 2005, and was only slightly damaged.
Just got word from my brother at Tidewater. Mandatory Equal time for all and training budget gone. That means that they all have to pay for classes out of pocket. He had a DP class lined up and now he’s gotta pay $3000 out of pocket. He seems to think the next thing to go will be the Regional Bonus. Things aren’t looking good so far in 2015.
my point was that the Big companies have jmped the gun and over built, Mom and Pops can afford to hang on, time will tell. Got to go make another run…