The oil industry has clearly entered recovery mode after plunging head first into the worst downturn in 30 years, says Pareto Securities Asia chief executive David Palmer.

But offshore support vessels (OSVs) and their owners are set to endure more torment from a host of devilish problems, including vessel oversupply, market fragmentation and huge piles of debt.

“We are now 35 months into the biggest downturn many of us have ever seen — the market has become personal as highly strategic human capital is lost and companies seek Chapter XI protection and we have been through a vicious negative spiral, where the offshore ‘pain train’ continues to roll,” said Palmer.