Collaboration and commercial innovation highlighted at biggest OSJ in years

520 industry leaders from across the worlds of offshore oil and gas, marine transportation, financial services and the wider supply chain convened in London to discuss the trends shaping their markets.

Offshore exploration and production investment is at decade highs and offshore development spending is set to average $55B per year through to 2027 - an outlook which has driven offshore vessel utilisation to 66 per cent, its highest in over 10 years. A supply crunch is coming with over 50 per cent of the global OSV fleet set to exceed 15 years old by 2025. A major talking point was the dual impact of an aging global OSV fleet. Retirements help tighten supply supporting day rate gains but must be balanced against higher maintenance costs, increased downtime risk and the need to invest in lower emission newbuilds.

The conference heard access to capital is improving but remains selective. With oil companies signalling longer-term regional requirements, vessel shortages provide a powerful incentive for owners, yards and financiers to resolve any obstacles to fund next-generation, environmentally friendly OSVs. A consensus emerged around incorporating hybrid features and fuel flexibility into new designs to prepare for alternate power sources like methanol, LNG, biofuels or hydrogen down the road.

Multiple presenters highlighted significant production growth and associated offshore vessel activity expected in regions like West Africa, Brazil, the Middle East, Mexico and Guyana over the next 5-10 years. Delegates were also briefed on how offshore wind, decommissioning, subsea minerals extraction, offshore aquaculture and hydrogen drilling are all emerging diversification plays with significant demand for customised vessels. 

We organise a global series of live events focussed on the global OSV market.  Offshore Support Journal Conference, Americas 2024 takes place 11-12 June in Houston, Offshore Support Journal Conference Asia 2024 takes place 17-18 September in Singapore and Offshore Support Journal Conference, Middle East 2024 takes place 11-12 December in Dubai.

We will also be running a series of OSV related webinars in September and October to complete the global picture for our followers.