Maritime Solutions - Naval Architects – Marine Engineers - Managers
Alternate Applications of Surplus
Offshore Support Vessels
www.TAIEngineers.com 1
2
The life of an Oil and Gas Support Vessel
• The service life of an OSV is approximately 30 years
• Last two major dips in oil and gas prices were 15 to 20 years
apart
• A major demand dip started in 1981 and lasted until the mid-
1990’s when a small amount of rebuilding surged
• Significant building rebound in new OSV construction in
2004. Current demand dip started in 2015.
• Important lesson: Good OSV designers keep this cyclic
nature of the business in consideration. This makes the
Shareholder and Financier feel more stable.
3
Global OSV Utilization by Market Category
Source: IHS Petrodata MarineBase 03/02/16
4
Global OSV Utilization by Market Region
Source: IHS Petrodata MarineBase 11/30/16
5
US Gulf Jones Act Market – March 2, 2016
Source: IHS Petrodata MarineBase 03/02/16
6
US Gulf Shallow Water Supply & Demand (Jan 2005 to Feb 2016) Contracted jackups/PSVs less than 2,999 dwt
Source: IHS Petrodata RigBase and MarineBase
7
Excess Supply vs. Demand Phenomenon:
• Highly Competitive Market
• Drop in charter rates, lowered revenues
• Stacked Vessels
• Loss of Trained Personnel
8
IMAGES NO ONE LIKES TO SEE……!!!
9
Supply and Demand Phenomenon
Owners Options:
• Wait out the event until rates improve
• Mergers and Acquisitions
• Seek Alternate Markets
• The unthinkable “D” word !
Broad Segments of the Marine
Industry
• Marine Transportation: Bulk, Break Bulk Containerized
cargo, & Support Vessels
• Offshore Oil and Gas: Exploration, Development and
Production Vessels
• Defense and Coastal: Protection; Military and Search and
Rescue Vessels
• Recreation: Yachts, Cruise and Excursion Vessels
• Fisheries and Seafood Processing
• Environmental protection and clean up: Research, Survey
and Response Vessels
• Development of Alternate Energy Sources: Wind, Wave,
Ocean thermal energy generation
10
Fact: Marine Industry Segments are Cyclical
The cycles depend upon factors such as:
• Demand for raw products, consumer & durable goods
• Demand for Energy and Petroleum derivatives
• Price of Oil and Oil Products
• Availability of Finance Capital
• Regional and Worldwide economic and political stability
11
• Marine Transportation: Depend on demand of goods
• Offshore Oil and Gas: Depend on price of oil and gas
• Defense and Coastal: Depend on political cycles and threats
• Recreation: Depend on discretionary income
• Fisheries and Seafood Processing: Depend on availability
and price of catch
• Environmental protection and clean up: Depend on
political cycles, and available budgets
• Development of Alternate Energy Sources: Depend on
public awareness, political cycles and available budgets
12
Marine Industry Sector Cycles are not in sync!
The Good News is:
• The world is 72% water
• Waterborne transportation is the most cost-effective mode of
transportation
• Water is a continual source of food, energy and recreation
• 75% of world’s population lives within 50 miles of a navigable
waterway
• Different segments of the marine industry are not always
on the same cycle
13
ATTRIBUTES OF AN OSV DESIGN
• Deck house forward
• Large expansive open deck aft
• Most newer generation OSVs are diesel electric
• Mechanical OSVs have excess electric power
for cargo offload systems
• Rugged hull design
• Extra strong deck
• Twin screw
14
Suitability for Conversion
• OSVs are extremely adaptable due to their expansive
open deck space
• Essentially the “flat bed truck” of the ocean
• The rear deck serves as a foundation capable of
supporting many different structures
• OSVs are rugged and built to carry large loads
• The efficient and maneuverable hull-form is
advantageous to most applications
• Shallow draft, allows access to most ports
• Diesel electric power plant offers a wide range of options
for distributed power applications
15
Lessons from History
16
Conversion to Cruise Vessel
17
Passenger Ferry
18
Conversion to Fish Processor
19
Another Conversion to Cruise Vessel
20
Conversion to Diving Support Vessel
21
Conversion to SWARM support
22
Conversion to SWARM support
23
Conversion to Surveillance Vessel
24
Passenger & Auto Ferry Conversion
25
Conversion of OSV to Seismic Vessel
26
More Exmaples
Growth in complexity can increase revenues with minimal capital investment.
Yacht Escort Vessel Research platform to
defense projects
27
OSV to OCSV, Container, Lightering Vessel
28
Short Sea Container Vessel
29
Ferry
30
Oil Spill Response Vessel
Growth in complexity can increase revenues with minimal capital investment. 31
Bunkering or Lightering Vessel
Growth in complexity can increase revenues with minimal capital investment. 32
Flotel, Hospital Ships, Humanitarian Support
Growth in complexity can increase revenues with minimal capital investment. 33
Yacht or Boat Transportation
Growth in complexity can increase revenues with minimal capital investment. 34
NAVY Shadow Boats – Submarine Support
Growth in complexity can increase revenues with minimal capital investment. 35
Fishing Trawler
Growth in complexity can increase revenues with minimal capital investment. 36
Fish Processing Vessel
Growth in complexity can increase revenues with minimal capital investment. 37
Ocean Surveillance Vessel
Growth in complexity can increase revenues with minimal capital investment. 38
Cable Laying
Growth in complexity can increase revenues with minimal capital investment. 39
Possible Alternate Markets for OSVs
• Ferry
• Container (Short Sea Shipping)
• Navy Salvage
• General Cargo
• Deep Sea Salvage Standby
• Casino Gambling Vessel
• Wind Farm Support
• Wind Farm Installation
• Cable laying
• Twin Hull Heavy Lift Vessel
• Oceanographic Research Vessel
• Hydrographic Research
• Mega Yachts
• Launch and Retrieval of Autonomous
Vehicles
• Naval Refueling
• Bunkering Operations
• Boat/Yacht transportation
• Helicopter launch
• Migrant Surveillance
• Hospital Ships
• Production testing
• Well acidizing
• Early production
• Oil Spill Response
• Oil well intervention
• Floatel
• Deep water platform maintenance
• Humanitarian support
• Fishing Vessels
• Emergency Power Supply
• Ocean Mining Support
• Transshipping/Cargo Handling
• Dredges
40
Next Step…..
GAP STUDY TO EVAUATE VARIOUS OPTIONS
41
42
SUSTAINABLE (R)EVOLUTION
OFFSHORE ACADEMY &
THE MULTI-MISSION MARITIME EDUCATION FLEET
• Current State of the Offshore Sector
• Opportunity
• How Do We Capitalize?
• Approach
• Challenges
• Conclusions
AGENDA
www.offshore-mag-com
www.offshore-mag-com
www.Bloomberg.com
CURRENT STATE OF THE OFFSHORE SECTOR
OPPORTUNITY…
You need to think outside the box. If you’ve got something as complex as a helicopter, but it’s not needed to take oil workers around, maybe it could be doing something else…
What’s important is to maintain the skills base.
– Bruce Dickinson, 08 September 2016
HOW CAN THE INDUSTRY CAPITALIZE?
US Flagged, Jones Act eligible, ocean going vessels compared to OSVs (US DOT 2013).
FEDERALLY SUPPORT TRAINING VESSEL
Maritime Executive; NSMV: the Built-for-Purpose Training Ship; 29 July 2016
IN WITH THE NEW
www.moxa.com
IN WITH THE NEW
www.MAC-L.com
ANOTHER OPTION:
Supporting the development of future maritime
leaders through sustainability and collaboration
Offshore Academy – Joint Industry Initiative
APPROACH
Partnership
Scholarship
Stewardship
SCHOLARSHIP
The first priority of Offshore Academy and the Multi-Mission Maritime Education
Fleet will be the education, training, and development of the future professionals
and leaders of the maritime industry.
SCHOLARSHIP Training & Education Afloat –
• Mariners & Engineers • Unlicensed Marine Crew • Surveyors • Technicians
Shoreside Education & Experience –
• Management & Support Staff • Logistics • Marketing
PARTNERSHIP Industry Cooperation –
• Varied industry participation • Vessel Owners / Operators • OEM / Vendors • Academic Institutions
Commercial Viability / Availability –
• The fleet of OSVs would maintain viability and continue to serve the needs of various commercial entities with revenue used to offset operating costs and further develop programs.
PARTNERSHIP
Glosten; Regional Class Research Vessel Design; Design Summary, 29 July 2016
PARTNERSHIP
Government Cooperation –
• Government Financial Support • Training & Education
National Defense –
• Military Sealift • Military Support Operations
STEWARDSHIP
Community, Humanity, & Environment
• Re-Use of Existing Assets • Promote Industry Awareness • Veteran Transition Programs • Oil Spill & Environmental Response • Support Humanitarian Efforts • Disaster Relief
CHALLENGES Commercial
• Feasibility – Taking the “long view” • Sharing resources / logistics
Government
• Return on investment • Licensing restrictions • Vessel repurposing vs. $1.2billion newbuild package
CONCLUSION
Is this an opportunity, or is it a necessity?
THANK YOU FOR YOUR TIME
Any questions?
Chad N. Fuhrmann
(R)Evolution Consulting & Engineering Services [email protected]
+1 920 750 8844
Top Related