More than 50 vessels idle in North Sea - 60 in Gulf of MexicoNews // July 9, 2015
Fearnley Offshore Supply AS (FOSAS) says the market continues to be challenging for oil companies, vessel owners, equipment providers. "All are feeling the chill, and are preparing for reduced activity. The industry is no longer holding its breath awaiting quick recovery from oil price bounce back. On the contrary, industry players are preparing for a long period of cloudy weather and are taking necessary steps to prepare their organizations for a different and more challenging business climate," said FOSASA
The number of vessels in layup is growing, said FOSAS. "In the North Sea alone we see more than 50 offshore support vessels idle. Also in the Mediterranean and Middle East/Far East region vessels are laid up. In the US Gulf the situation is no different with some 60 vessels laid up. The support vessel market has experienced a severe drop in demand caused by reduced exploration activity and reduced rig fleet utilization.
"The market is out of balance when it comes to supply and demand. Even with the entire rig fleet working, we would have a surplus of support vessels."