LISTEN TO THE DUTCH

The country that is by far the best organized when it comes to managing its coast has got to be the Netherlands, more than half of which is essentially land recovered from the sea.  They are not called the Low Countries for no reason.  Why don't we listen to them on the subject of coastal protection?  Read an interesting article in Canada's Financial Post here.  June 29, 2010.

HALTER CHRISTENS/LAUNCHES T-AGM 25

The USNS Howard O. Lorenzen, (T-AGM 25), which will replace the converted Mariner, the USNS Observation Island, (T-AGM 23), was christened on Saturday at VTHM's yard in Pascagoula.  Read the Navy's announcement here.  She was launched on Wednesday: see photo on the right.  June 28/July 1, 2010.

NOBLE BUYS FRONTIER

Another company with few apparent concerns about the future of offshore is Noble Drilling, which has bought Frontier Drilling for $2.2 billion.  Read Noble's announcement here.  Frontier operates three drill ships, one semi (currently in the USGoM) and one FPSO, and has two drill ships under construction.  June 28, 2010.

BOURBON BULLISH ON OFFSHORE

Bourbon unveiled its plans for the next five years today in Shanghai.  It's terrific.  If you have any doubts about the future of offshore, click here and then watch the presentation.  June 25, 2010.

CALM DOWN, PLEASE

Just because Senator McCain has introduced a bill does not mean that the Jones Act is going away.  Not a chance.  Senator McCain is a nincompoop.  He introduces bills all the time and even the ones that represent half-sensible ideas don't get passed.  In the past 20 years, he has sponsored over 1600 bills.  How many became law?  Seventeen, just over 1% of the total.  Whoop-de-doo.  June 25, 2010.

CHAVEZ SEIZES MORE U.S. RIGS

Apparently the Government of Venezuela has seized eleven rigs owned and operated by Helmerich & Payne.  Read the Bloomberg story here.  Read the company's statement here.  Why do we put up with this nonsense?  Are the Marines doing anything this weekend?  June 25, 2010.

NINE MORE RB(M)S

The Coast Guard's RB(M) program reached 105 today, with the award of nine more boats to prime contractor Marinette Marine.  The contract price is $19 million with deliveries starting in 2011.  Marinette says that half will be built by Marinette's subcontractor, Kvichak Marine, and half by its own Green Bay subsidiary, Ace Marine.  (What's half of nine boats?)  According to the Coast Guard, 27 of these versatile and effective little boats have now been delivered.  June 24, 2010.

FEDERAL JUDGE THROWS OUT DRILLING MORATORIUM

The industry team, led by Hornbeck, won the day in New Orleans, although the Government will appeal.  Read the order on Marine Log's web site here and AP's story on NOLA.com here.  June 22, 2010.

COCHRAN GETS BATEMAN AWARD

Marine Log reports that the two-member American Shipbuilders Association has given the Bateman Award for 2010 to Senator Thad Cochran of Mississippi, saying that "He has consistently increased shipbuilding budgets".  Read Marine Log's report here.  This should look well in the Senator's office alongside his recent Porker of the Month award from Citizens Against Government Waste.  Read that nomination here.  June 22, 2010.

HORIZON SEEMS TO BE IN TROUBLE

The following message was sent to Horizon's senior seagoing personnel on Thursday by Don Watters, whose job title is shown as "Director of Operations OTS".  This is a pretty clear indicator of a company in financial difficulties and, given the advanced age of the Horizon fleet, it's also fairly alarming.  June 22, 2010.

US SHIPPING'S ITB PHILADELPHIA A CTL

The Philadelphia was transiting the Suez Canal when it collided with K Line's containership Rhein Bridge.  Damage was extensive - the port engine room was flooded - but no one was hurt.  She was towed to Port Suez, where she was turned over to an Indian shipbreaker.    I think that just leaves one of the six ITBs still in the fleet - the Mobile - and she's still tied up in Violet LA.  June 21, 2010.

IS THIS THE WORLD'S UGLIEST SHIP?

That strange Malaysian/Hong Kong entity that calls itself Norwegian Cruise Lines has just taken delivery from STX France of its first post-Panamax cruise ship, the Norwegian Epic.  Some of us might have been getting used to the surpassing ugliness of modern cruise ships but this one sets it all back to square one.  Is that not one hideous monster?  Those top two decks look as if they had been dumped there (as it were) by a passing albatross with a problem.  June 21, 2010.

NO DAY OFF FOR ANYONE

Gosh, how insensitive was it for Tony Hayward to take a day off?  What can he have been thinking?  I mean, don't the folks at BP know that nobody in any kind of responsible job is allowed to take a day off, ever?  Ever, ever, ever?  Look it now, President Obama never takes a day off, does he?  Oh, yes, silly me, of course he does.  And the members of Congress, who are supposed to be getting us out of the mess they got the country into, they never take days off.  Hell, no, they take whole months off.  Such hypocrisy!  June 20, 2010.

WHEN ARE CONFLICTS NOT CONFLICTS?

It's hilarious to see members of the Congress, of both parties, calling on the odious Rep. Barton to step down from the Energy Committee because he has a conflict of interest.  Hey, people, you've all got conflicts of interest!  Or almost all of you.  Get real!  Here's how to clean up the congressional cesspit: make it an ethics violation subject to loss of seat for any member to accept any campaign contribution from any person or entity with an interest in a matter that comes before a committee on which that member serves.  July 19, 2010.

HAYWARD STEPS ASIDE

BP's Chairman has told Sky News that Bob Dudley, formerly of Amoco, will be the point man for the Macondo spill from now on.  Read the story here.  So Tony Hayward didn't even make it to the end of the spill, let alone to the end of the year.  But he's still CEO.  By the way, the bookies are now offering 4 to 1 against BP filing for bankruptcy before the end of the year: if you own a lot of its stock, this might not be a bad hedge.  July 18, 2010.

ADA EXTENDED TO VESSELS

The DoT has extended the rules of the Americans with Disabilities Act to apply to passenger ships and boats.  Read the announcement here.  Great timing!  Bad news for the struggling passenger vessel operators, of course, but good news for the shipyards which get to make the modifications.  Elevators, ramps, wider doorways, accessible bathrooms, facilities for dogs, even on those little harbor tour boats.  June 18, 2010.

DOES NO ONE WANT THE JOB AT KINGS POINT?

The Superintendent of Kings Point resigned in November.  The Academy is in disarray and desperately needs strong and effective leadership.  So who's his replacement?  Who knows?  Well, it's only been seven months: it's not reasonable to expect prompt action from MARAD on anything, especially not something as unimportant as this.  Is it?  Commencement's on Monday: maybe there will be an announcement.  No, probably not.  Anyway, I say give the job to Dean Kumar, who's Acting Superintendent now.  He's a maritime economist and he has broad international experience, which makes him vastly more qualified than the retired admiral they'll probably end up appointing.  June 18, 2010.

WHAT ABOUT A REPLACEMENT FOR JEAN McKEEVER?

The long-time Associate Maritime Administrator, the one with all the important program responsibilities, such as Title XI and the Small Shipyard Grants Program, retired in November and has not yet been replaced.  What is going on at MARAD?  Are they all on vacation, or just asleep?  Maybe they are busy explaining the Jones Act to the new, but still unconfirmed, Administrator.  June 18, 2010.

BOLLINGER AND CHOUEST JOIN HORNBECK

A double blast on the vuvuzela for Bollinger and Chouest, who have joined Hornbeck's suit against the Government's illegal moratorium on deepwater drilling.  But where are the rest of you?  June 16, 2010.

MORE RIGS LEAVING

The day before the Macondo well blew out, there were 42 deepwater rigs working in the USGoM.  Today there are 24.  That's a whole lot of lost jobs already - 4,000 to 5,000 on the rigs themselves, plus at least twice that number in the boats and on shore.  June 16, 2010.

THE LATEST ON THE INDEPENDENCE

The old Independence, which was beached near Alang in October, but not accepted for demolition, is now breaking up, as you can see from the picture on the right.  This is very sad.  We've never had any kind of explanation from either MARAD or the EPA regarding the legality of her removal from the U.S.  And what was the role of NCL in this sordid affair?  I guess that because she's at Alang, she's "out of sight and out of mind".  Can you imagine the fuss if she had been beached somewhere in the U.S., such as Senator Inouye's back yard?  I think there's been a dereliction of duty by senior civil servants here.  What do the DoT and EPA Inspectors-General have to say?  June 16, 2010.

THE CANADIAN NAVY TURNS 100

There's a naval review this weekend in Victoria BC and another next month in Halifax NS, to celebrate the centenary of the Canadian Navy.  This is excellent: a naval review is always a great occasion.  And I shall refrain from making any snide observations about the currently minimalist state of the Canadian Navy, which consists of three 40-year-old destroyers, 12 frigates and four ex-RN submarines that don't work.  June 16, 2010.

OLE SKAARUP DEAD AT 94

One of the great men of our industry, Ole Skaarup, died yesterday, 94 years young.  I had the privilege of working with him in the 1990s, when he tried to put a small bomb under the U.S. shipbuilding industry's approach to the construction of tankers.  He was simultaneously brilliant, exasperating, charming and funny.  Read the CMA's tribute to him here.  June 16, 2010.

THE OTHER BIG BP SPILL

Check out the other big BP spill here.  June 15, 2010.

RHODE ISLAND SHOWS THE WAY

In another example of political clear thinking, such as we have come to expect from Rhode Island, the state's House of Representatives has passed a bill requiring a police escort for all LNG carriers calling there.  Read the story in the Jamestown Press here.  Great pocket money for off-duty state troopers, but how they would actually do anything useful is not too clear.  June 11, 2010.

ENOUGH OF THIS LACK OF RESPECT FOR THE CONGRESS

It's a given that nobody knows better how to run the country than those 535 members of the United States Congress.  If they didn't, we wouldn't have elected them, would we?  I've had it with all these big corporations acting as if they know what they're doing.  Where does BP get off proposing to pay dividends to British widows and orphans?  The temerity of these people!  I think we should nationalize all the oil companies and re-create Standard Oil, only with Congressman Ed Markey as CEO.  And while we're about it, let's nationalize the big six shipyards and put Congressman Gene Taylor, the man who claims to be able to design a Coast Guard cutter on the back of an envelope, in charge.  Simple, really.  June 10, 2010.

BP BRINGING IN NORTH SEA SHUTTLE TANKER

Now that they are capturing over 15,000 bpd from the Macondo well, BP needs shuttle tankers.  They have started work with the 24,000-dwt ATB Massachusetts and are planning to use OSG's 48,000-dwt Overseas Cascade, but Tradewinds reports this morning that the 130,000-dwt Loch Rannoch is now on its way from the North Sea.  Serious capacity.  June 10, 2010.

HORNBECK GOES ON THE OFFENSIVE

Hornbeck Offshore is taking on the Administration's offshore moratorium in court.  Read the suit here.  Good on them!  June 10, 2010.

SPILL PUTS JONES ACT UNDER ATTACK

For a classic example of ignorance and confused thinking, read this from the Heritage Foundation.  I trust that our industry associations are on the alert.  June 10, 2010.

ODDS ON HAYWARD LENGTHEN

The odds on Tony Hayward surviving as BP's CEO are lengthening.  A week ago, evens: now six to four against.  Personally, I bet he quits the week after the flow of escaping oil is finally stopped.  BP's invisible Chairman should quit the same day.  And I would bet that BP goes outside the company for successors: there are, of course, good candidates inside the company, but they are now all tarred with the Macondo brush.  June 9, 2010.

LYNNE FRINK ON THE WAY

The National Response Corp's Oil Spill Response Vessel Lynne Frink, normally based in Delaware Bay, just sailed past my window.  I guess we all know where she's going.  June 8, 2010.

TRINITY YACHTS DELIVERS

AUSTAL GETS FUNDING FOR JHSV 4 AND 5

The Navy has exercised an option on its contract with Austal USA for $100 million worth of LLTM for JHSVs 4 and 5.  Read the DefenseLink announcement here.  June 4, 2010.

FORGET THE FISHERMEN, WHAT ABOUT THE OFFSHORE WORKERS?

The Louisiana Mid-Continent Oil & Gas Association has released some data on the impact of the Administration's poorly thought out suspension of exploratory drilling.  It's a very badly structured document, which doesn't spell out the numbers at all clearly, at least not by my nitpicking standards, but it seems to be saying that there will be at least 50,000 jobs going with the 33 rigs and 70 or so associated OSVs that have been idled by the order and that are already starting to move out to Brazil and West Africa.  Read the LMOGA fact sheet here.  And read OMSA's press release here.  I don't hear Governor Jindal, who doesn't want the federal government to help Louisiana except when he does want the federal government to help Louisiana, yelling and screaming about this, which is many, many times bigger than the damage to the Louisiana fishing industry.  Regardless of the political issue, however, the other big question for the industry is whether or not the moratorium constitutes a force majeure event under rig charters and other contractual vehicles.  June 4, 2010.

HERE'S ANOTHER WAY TO PLUG THAT WELL

I've already suggested that BP should try to plug that hole with MSNBC's Chris Matthews but an alternative and probably even more popular approach is pictured on the right.  June 4, 2010. 

THOSE LOUISIANA FISHERMEN

Well, as I said earlier, I'm sure that we are all totally distraught about the suffering among Louisiana fishermen.  But consider this.  The New York Times reports today (a) that the fishing areas that remain open are not being fished intensively, (b) only 6 of 10 tuna boats are going out, although they fish in another part of the Gulf altogether, and (c) despite the plentiful fish, many boat captains cannot find enough deckhands.  Such misery!  June 3, 2010.

AN ALTERNATIVE SCENARIO

If BP is too big to merge with another oil company, maybe the solution is for it to sell its North American operations, so that the dreaded BP name disappears from our sacred soil.  Who might buy them?  ExxonMobil would probably not be a politically acceptable buyer.  Either Chevron or ConocoPhillips could be.  What about a European company?  Shell?  Statoil?  Total?  ENI?  Or a state-owned company from a country that we don't hate, such as PetroBras?  June 3, 2010.

WHO WILL REPLACE HAYWARD?

The British and Irish bookies are, of course, making books on the replacement of Tony Hayward as CEO of BP.  They are saying it's an even bet he'll be gone by the end of the year.  See the odds on his successor here.  Interesting to see three ConocoPhillips guys in the list.  Do you think that  there could be a merger in the works?  June 2, 2010.

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