OSV INDUSTRY WILL EMERGE WITH LEANER STRUCTURE BUT ASSET VALUES NEED TO BE CORRECTED

摘要

Historically, when oil prices fell, OPEC reduced output, prices rose, offshore support vessel (OSV) operators preserved cash and sat it out and all was well with the world. Today, despite output cuts by some OPEC members, stocks are still higher than ever before. With the unprecedented development of alternative energy sources such as wind, shale and nuclear, the current energy recession and reduced global demand for offshore oil and gas equipment has never been more challenging for the industry. The situation has similarities to the subprime mortgage disaster, caused by a large decline in asset values after a 'bubble' prompted by higher returns on the back of low credit quality, which defaulted and became toxic. The outcome was one of the world's worst recessions, resulting in lower global spending and the loss of 6 million jobs. House prices fell by 30 per cent, and the stock market fell by 50 per cent. It took six years for stocks to recover.