Some great footage on Youtube here of vessels in lay up in Batam. Sometimes I think it is only by watching such scenes visually the scale of the drop in demand in offshore, and the concomitant oversupply, can be appreciated.
I heard a lot of talk at the OSJ conference last week that it isn’t as simple as putting companies out of business, as these assets will simply come back at a lower price and compete against you, or they may be worth more in the future, but really that just means their economic worth is less than you care to accept.
I’ll write more about this later but the obvious point is that unless something structural is done here the vast quantities of latent capacity make any sort of recovery in offshore supply unlikely. Not wishing to pick on any particular company here, but as a follow-up to this, it shows what a huge problem SolstadFarstad has with the commodity DeepSea fleet.