FEATURE
SHIPBUILDING: U.S. COAST GUARD & OFFSHORE
Gulf Coast Shipyards filled with
Coast Guard, Offshore Work
Bollinger Shipyards recently installed the first commercial dry-dock at Port Fourchon to service the central Gulf of Mexico. Demand for the 9,000ton dry-dock and the company's wet dock remains brisk despite the slowdown in the Gulf region.
By Matt Gresham
Navigating the highs and lows of the offshore oil patch is historically a daunting challenge for Gulf Coast shipyards. Today, these waters are particularly turbulent as many shipyards face uncertain international and domestic markets in the near-term, while planning and preparing for busier days ahead. "The oil and gas sector is coming off record years, but it is still cycling down," said Robert Socha, executive vice president for sales and marketing at Lockport, La.-based Bollinger Shipyards. "I don't think its hit rock bottom yet." Ken Wells, president of the Offshore Marine Service Association in New Orleans, said forecasts for predicted upticks in the industry are anyone's guess right now. And President Obama's Administration has been quiet on its offshore energy policy, which also affects industry investment. "Forecasts of when things might pick up are all over the map," Wells said. "Typically, the industry takes a long-term view. No one thought the good times would last as long as they did and smart companies didn't over-commit or overextend themselves."
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Currently, only about 35 drilling rigs are operating in the Gulf of Mexico � its lowest point in more than two decades. Even during the early parts of this
decade, drilling rigs in the region topped 175. Utilization of supply vessels in July tapered off from the mid-to high 90s a year ago to about 75 percent for vessels
The M/V Busy Bee is one of five new 210-foot OSVs Bollinger Shipyards is building in Lockport, La., for its sister company Bee Mar LLC, which will market and operate the vessels under a new business model.
under 200 feet long and below 90 percent for larger vessels. Day rates also followed suit, as vessels less than 200 feet saw rates fall about a third from a year ago and larger vessels realized about a quarter drop compared to last year. "We are in a profound slowdown right now," Wells said. "A lot of offshore projects dried up in the last month or two, vessels are tied up and rates have fallen. Many shipyards are still working off of backlogs, but that could change by the first quarter of next year." Joe Bennett, executive vice president and chief investor relations officer for New Orleans-based Tidewater Inc., said the company, which owns the world's largest fleet of oil and gas service vessels (404), only has 15 to 20 vessels currently servicing customers in the Gulf region. "It's still an important area, but not as significant due to the size of the fleet we have working there," he said. "We believe the region will be challenging for a while and we don't see a lot that provides optimism. We're keeping a close eye on the Administration and the President's approach to higher taxes. It's concerning to us on a global basis." Bennett does see signs of improvement,
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