An empirical analysis of offshore service vessel utilization in the US Gulf of Mexico

Purpose – The offshore supply vessel (OSV) industry is critical to offshore oil and gas operations around the world and contributes to the economic and ecological impacts experienced by the local communities supporting the offshore oil and gas industries. The OSV industry has not been studied significantly and the economic and ecological impacts to local communities is generally unknown. This paper aims to address these issues. Design/methodology/approach – In this paper, the authors review the activities and logistical requirements involved in offshore exploration and development with special attention paid to workflows and the manner in which service vessels are utilized in the Gulf of Mexico. The authors estimate the OSV needs per stage of activity for offshore operations based on data collected from company planning documents, fleet utilization data from oil and gas companies and service providers, interviews and surveys. The statistical data is synthesized and reconciled and despite large variances the data sources are in reasonable agreement. Empirical data on circuit factors are also provided. The applications and limitations of the analyses are discussed. Findings – In the US GOM, a large variety of marine vessels transport goods and provide services to exploration, development and production activity. OSVs provide a vital link between offshore E&P activities and shore‐based facilities. Offshore oil and gas operations cannot function without them and their utilization and spatial distribution provide a way of understanding the impacts of the offshore oil and gas industry on coastal communities. Originality/value – This is the first empirical analysis of any offshore service vessel industry. The data presented here can be used to predict the environmental, economic, public health, and infrastructural consequences of alternative offshore development policies.