Is the shelf finished forever? Last month did a project at Omega’s yard at the Port of Iberia, Omega’s yard as well as the Port of Iberia is almost a ghost town. I recall 15 years ago there were cranes sticking up in the sky everywhere you looked, traffic horrible at 5:00 etc.
Yesterday we started another project at a yard in Houma, I was shocked at the amount of places with the gates locked, no signs on buildings and tall grass. Definitely a sign of the times.
There is a slip on the way to Bayou black that has been chock full of ships for over a year now. Prior to that I didn't even know the slip existed. Pretty sad to see it siting there because I know it took a small army to man all of them.
SUSHII
21XRS/SHO
Ride down Bayou Lafourche at the last 20 miles or so.....hundreds of tugs and oilfield supply ships tied up. Been that way a while. Most are probably owned by banks now....just sitting.
Obama and Gore, said burning fossil fuels is evil, and that we are "ruining" the planet burning it....as they fly around the planet to exotic destinations and estates on large fossil fuel burning jets....burning more fuel in a single year than 10,000 American families do in a lifetime. Now, that is the definition....of hypocrite....
I don't see the shelf coming back unless the price gets above 80/bbl.
Price is at $60 and there's plenty jackup boats sitting in leeville right now..
but on that note, I do t think it's just the gulf.. when I rolled thru Wyoming earlier this year, all those yards are stacked high with equipment.. it's a sign when you see those rigs just parked in a yard..
Arena has at least 2 rigs working for them. They just released the Gorilla IV which was the third in the Eugene Island area on the shelf. I'm not sure if they have any rigs in other fields.
Well if I remember correctly when the oil patch fell, some high ups in Chevron, BP and Shell said it would be 10 years to a solid recovery, depending on prices.
All sheep are eventually led to slaughter
Recovery will take a minimum of 75 dollars per bbl (WTI) before you will see offshore start to recover......its cheaper with much less risk right not for oil companies to pruse wells on land at the moment
This is my thinking, during the years of $70/BBL oil and higher there were no decks and jackets being built = no real infrastructure being built. However there was quite a bit of offshore construction work being done such as repairs to existing decks & process equipment repair/replacement. Sub sea wells were drilled and completed, older wells worked over but they were all connected to existing facilities.
Basically money was being spent to increase oil and gas production but there were no projects to develop new fields etc.
I've been told that a lot of new start up investment companies bought existing fields and paid $60/BBL in the ground with proven reserves. It doesn't take a Harvard genius to figure out how much money these investment companies were making when oil was $50/BBL.
Anyway my point is @ $100/BBL oil there was no infrastructure being built simply because all the decks, jackets and pipelines are in place. There will be no huge discoveries that would require huge capital investments and these two major points lead me to believe the shelf is finished.
Gotta agree with you Mark. The shelf is done as far as new infrastructure.
They will continue to sidetrack and work over existing wells, although not nearly as much activity as we saw just a few years ago. When I started running downhole equipment back in '03, they were completing 10 wells a week in on the shelf. Those days are over.
Deepwater hasn't slowed down one bit on our end. I now coordinate completions for a major deepwater player in the gulf and we are extremely busy. This will continue through 2018.
Deepwater, International or south and west Tx is the only options these days
My brother-in-law works at LaShip in Houma. He tells me most of the boats built to supply the wells on the shelf are tied up. The boats built for deepwater are busy.
Originally Posted by oiltech09
That's where the dollar bills are.
There's one thing you guys are taking into consideration. The shelf is being depleted. It was never going to be forever. The only NEW fields are deep water. The wells on land (fracking) can be developed for a LOT less than deep water wells just because of the logistics involved. Even if the price goes back up to $100/bbl, there just isn't that much shallow (<1000') reservoirs left.
I was doing some research while at work on the BSEE Database for the Texas Gulf Coast (Mustang Island field). Out of 80 pipelines, they only have 3 left. The ENTIRE south Texas fields are covered with 1 helicopter.
They've got probably half a dozen drill ships stacked out of Fouchon.
Alan
__________________________________________________ _________
Free men are not equal. Equal men are not free.
I do know they are back to leasing in Mississippi for fracking
All sheep are eventually led to slaughter
I have seen that H.O.S. Offshore has a bunch of big ass supply boats parked back there and they haven't moved in a long time..sad to see
Tidewater has quite a few in there also. They were big players when the shelf market was rolling. Chouest has the deepwater marine logistics market on lock!
He has some big ones tied up too, agree though he’s got the deep water locked up
he also continues to build them, they are getting more advanced with each build I guess. phasing out the old stuff
721 ProXp
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