kornut11 said:
I work for an onshore operator, and have little understanding of the state of the business for offshore companies.
I am curious: will companies that typically made their money offshore begin to look for onshore opportunities?
There's an entire offshore eco system so this isn't a yes/no answer.
The majors obviously have a footprint in both places.
But for manufacturers and service providers it's not something that really translates.
My experience is with offshore contractors. Those guys can't move onshore - everything that they have and are invested in is relative to engineering, procuring, and installing offshore.
Right now there is a huge glut of expensive purpose built installation vessels that have a very high operating cost whether working or not.
Until there is both a recovery in demand AND a reduction in the supply of these specialized vessels, recovery for offshore contractors is in the distant future.
You would think EMAS going out of business would help on the supply side - and it will some - but then Subsea7 comes along and takes possession of the
Lewek Constellation which keeps capacity in the market that isn't needed (clearly or EMAS probably wouldn't be bankrupt).
McDermott did the same thing with the
Ceona Amazon.
In both situations, the overall market would be better off if the banks owned those vessels and they ended up being scrapped/sunk etc.