There is a long ride ahead for the offshore support vessel owners, and some of them might not make it to the finish line. Namely, a recent study by AlixPartners has shown that a number of OSV players are looking at a potential bankruptcy.
A recent study by AlixPartners confirmed that what most of the people in the industry have come to know so far: there’s a significant supply/demand imbalance in the market – too few offshore rigs and too many offshore vessels, leading the owners to become price takers, with rates at or below operational costs.
This was of course caused by OSV companies’ overly optimistic ordering spree during the heyday, without forecasting one of the worst downturns in the history of the oil industry. The wakeup call came in mid-2014 when oil price started its free fall from over a $100 a barrel to, at one point in 2016, below $30.