Inland • Coastal • offshore • deepsea
OUtLOOk pOSitiVe FOr OFFSHOre, but tighter CAPeX aMId a posItIve outlook for the offshore oil and gas industry in 2014, senior oil and gas professionals are forecasting tighter monitoring of capital expenditures (CA PE X) t his yea r, accord i ng to new research published by DNV GL. The report, “Challenging Climates: The outlook for the oil and gas industry in 2014,” is based on a survey of 438 senior professionals and executives in the global oil and gas sector. W h i l e 8 8 % of r e s p on d e nt s t o t h e research are confident about the sector, concerns over rising operational costs, a shortage of skilled professionals and competition f rom internationa l riva ls are causing professionals to focus spending on the projects that will provide the greatest return on investment. The report also reveals that the U.S., Brazil and Australia will be the top investment destinations for 2014, with larger operators seeking to expand into challenging new deepwater environments such as East Africa and the Arctic. These sites, however, won’t see full production until around 2018. Per Olav Moslet, Arctic Technolog y Program Director at DNV GL, believes t here w i l l be a signif icant increase in
offshore activity in the Arctic during 2014, compared to last year. He notes several significant planned drilling campaigns, such as Shell in the Chukchi Sea off Alaska, and ExxonMobil and Rosneft in Russia’s Kara Sea, among others. The U.S. Energy Information Agency forecasts that U.S. crude oil production will rise from 7.5 million bbls per day in 2013 to 8.5 million bbls per day this year. The report says that subsea technologies will see the greatest investment in 2014, along with f loating liquefied natural gas and enhanced oil recovery. According to the report, the number of companies planning to increase investment in new projects fell by 18% over the past three years, from a high of 63% in 2012 to just 45% in 2014. For the first time since the aftermath of the Macondo incident, overall confidence in the oil and gas sector has fallen—albeit only by one percentage point—signaling a shift in sentiment. key fIndInGs Include: • Despite some signs of caution, the overall outlook for 2014 is confident among industry professionals: 88% are optimistic about the outlook for 2014. • Respondents expect to keep a closer watch
on costs: 62% intend to pressure suppliers to curb cost increases next year, especially across Asia. • Uncertainty over oil and gas prices will be more prevalent in 2014: 23% of industry professionals think oil and gas prices will weaken this year. Elisabet h Tørstad, CEO of DN V GL – Oil & Gas, says: “Oil and gas industry projects are becoming increasingly complex as the industry continues to operate in more challenging environments. The cost of ex ploration a nd production is rising, the industry’s pool of skilled professionals is decreasing and companies are feeling greater pressure on their overheads. This is all leading to great focus and a degree of ‘belt tightening’ across the industry with a view to keeping a tighter rein on capital expenditure. “We’re also starting to see signs of greater consolidation across the oil and gas industry supply chain. Our research gives clear signs that pressure will be put on suppliers to become more innovative, to reduce costs and to show value in 2014 by providing access to scarce, in-demand skills and by demonstrating real quality in the products and services they deliver.”
this order as well as other order activity, we will be hiring around 150 additional personnel later this spring and early summer. We believe the ATB market is robust and that there will be additional orders of similar barges. We have an excellent history of providing quality products to our customers on schedule and budget and we believe we are in a unique position to serve this market.”
nIcHols brotHers to buIld tuG Meanwhile, Nichols Brothers Boat Builders, Freeland, WA, signed a contract with Kirby to build the 136 ft x 44 ft ATB tug. The entire ATB unit is designed by Guarino & Cox, LLC, Covington, LA. The tug will have two 5,000-hp EMD 20-710G7CT3 diesel engines. The tug w i l l be delivered in t he summer of 2015.
kirby tO bUiLd
185,000 bbl Atb unit Houston-He adquartered kIrby corpor atIon will expand its presence in the coastal transport market by spending $75 million to $85 million to construct an Articulated Tug Barge (ATB) that will incorporate a 185,000 bbl tank barge and 10,000 hp tugboat. The reason for the new addition is simple. Kirby Chairman and CEO Joe Pyne, says, “With the coastal f leet utilization around 90%, increasing demand for the coastwise movements of crude and natural gas condensate, and continued progress in expanding our coastal business to inland customers, new capacity is needed to meet demand.” Gunderson Marine, Portland, OR, has received the order for the 578 ft ocean tank barge—the largest in its history. “This Kirby contract will provide a strong baseload of business into 2015,” says Gunderson General Manager Mark Eitzen. “We currently have approximately 700 employees at the Gunderson facility where we manufacture barges and freight railcars. It is expected that because of
February 2014 MARINE LOG 11