Slashed demand for offshore support vessels (OSVs) can be seen clearly in the oil companies’ drastic cuts in the use of jack-ups and floaters, which is in turn directly linked to their extremely low level of new offshore development projects.
The cutbacks are starving shipowners and rig operators of revenue, employees and capacity, which has set the scene for another round of cost inflation when the market turns as it inevitably will, says independent analyst Rystad Energy.
