- Positive outlook for US Gulf of Mexico energy production and vessel demand.
- Growing interest in offshore oil service assets as activity rebounds.
- Bipartisan support for the “Ships for America Act” boosting shipyards and mariner training.
- Nationalist policies expected to strengthen Jones Act trades over the next four years.
- Potential offshore market supply crunch as assets shift to South America.
The 3rd annual Marine Money conference in New Orleans, reported by Seatrade Maritime, was marked by optimism as stakeholders discussed financing for inland waterways, harbor craft, offshore services, and Jones Act trades related to refined petroleum products. The upbeat atmosphere reflected expectations for robust energy production in the US Gulf of Mexico, rising vessel demand, and enhanced US flag vessel readiness amid maritime security concerns.
Renewed Confidence in Offshore Oil Services
Participants expressed growing confidence in the offshore oil service market. Kirk Phillips, CEO of Wintrust Commercial Finance, noted the resurgence in offshore activity, attracting renewed interest from lenders. Cliffe Laborde of Laborde Marine Services LLC was hopeful for increased drilling and rig activity in the Gulf of Mexico.
Todd Hornbeck, CEO of Hornbeck Offshore, highlighted emerging opportunities in South America, suggesting that vessel movement to Brazil, Colombia, and Guyana could lead to a supply gap in the US Gulf.
Nationalist Policies and the Jones Act
The Jones Act emerged as a key discussion point, with Andy Longhurst of CSG Investments predicting a strong period ahead due to a nationalist and protectionist policy environment. This law, governing domestic shipping between US ports, is poised for growth as geopolitical considerations gain prominence.
The “Ships for America Act” and US Flag Assets
John Imhof Jr. of Vedder Price moderated a panel focusing on US-flagged assets in international trades. He emphasized bipartisan support for the “Ships for America Act,” which aims to bolster shipyards and mariner training. Ryan Libhart Pereyda of Patriot Maritime described the Act as a transformative opportunity with robust backing from Congress and the military.
While the Act may not see immediate enactment, its provisions point to a brighter future for US maritime infrastructure and readiness, aligning with growing concerns over national security.
Maritime Readiness and Investment Opportunities
Hugh Eden of Jefferies LLC highlighted the broader economic drivers of increased investment in maritime assets, underscoring the importance of resources for national preparedness. The conference showcased a promising trajectory for the maritime and offshore sectors, buoyed by favorable political and market dynamics.
The Marine Money event illuminated a pivotal moment for the industry, with optimism fueled by a blend of political support, market resurgence, and long-term strategic investments.
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Source: Seatrade Maritime
