Greetings from the Bayou City, which is experiencing the dog days of summer in a big way. Payback, we presume, for our unusually cool and wet Spring. The one thing about Houston that can always be counted on is that the weather cannot be predicted with any certainty; and that our local weather forecasters have the best jobs in the world. They get paid no matter what, without a remote chance of being correct more than five days in advance; and sometimes not even then. The only true predictor is to wash one's car, which is the equivalent of an Indian Rain Dance.
We might as well start calling Uptown Houston the "New City". There are no less than ten high rise buildings going up within view of yours truly's terrace or nearby. I once had a visitor from overseas who thought, truly, that Uptown was Downtown (Uptown has as much office and residential space as downtown Indianapolis or Pittsburgh, and is somewhat larger than downtown Fort Worth). I had to gently counsel that Downtown was eight miles east.
Not that I can any longer see Downtown as BHP Billiton has kindly thrown up a 50 story tower smack in the middle of my view.
Ruminations
This is, to put it mildly, the summer of our discontent. Not for the general population of the US, in spite of a historically slow recovery from the crash of 2009. But for the offshore drilling business and its suppliers, it's a holy hell. The onshore boys own what's left of the island, except for deep water commitments which are long term in nature and can only be performed by very specialized equipment.
What has become apparent is that an event not seen in decades is under way: a global oil price war. All of the parties involved are desperate; the US and Canadian companies to produce cash flow, the Middle East companies to maintain market share, the rogue states such as Russia, Iran and Venezuela to produce anything at all, and everyone else watching revenues fall and costs rising. The one bright spot is Mexico, which recently opened its petroleum markets for the first time since 1949. There is opportunity there.
There is of course, an upside which not many consider. The cheaper the product, the more profitable refiners and other downstream entities such as chemical companies will be. Pipeline companies and infrastructure companies with fixed product transportation contracts will be especially profitable, since they control geographic rather than supply resources.
A crown jewel for US companies would be a lifting of the export ban of US petroleum products. Think about it: the price differential for US and Canadian crude versus world market prices is substantial. If the export ban were to be lifted (and if trans-border pipelines were to be authorized by our government), this differential would disappear. Everyone would make more money and there would be more jobs. So don't just sit there. Write your congressman and senator as to how the petroleum export ban affects you personally. The seams are already straining; export of natural gas and "light" petroleum products are already permitted. Sharing of resources with Canada and Mexico is planned. We just need to take these last steps to be globally competitive.
Which leads, of course, to the jewel of jewels: an integrated North American energy complex. Perhaps our next President will be a little more aware.
USS Recruit
Bruce Watson and I share a love of military history, but this is one I had never had heard of.
The USS Recruit was a full scale US battleship made of wood which was erected in New York City's Union Square and was placed there from 1917 to 1920.
It seems incredible that a full-scale battleship (we think it was a New York class, the same as the USS Texas) could be constructed in a public square; but the times were ripe for recruitment and the USS Recruit garnered over 25,000 recruits for the US Navy.
The USS Recruit was the only land-based ship ever to be commissioned by the US Navy; and had a full crew with quarters on board - in Union Square!
After World War I, the USS Recruit was dismantled, and its whereabouts are unknown.
A curiosity of interest. Its real steel sisters fought the battle of Surigao Strait in 1944 to great effect, with Admiral Jesse Oldendorf "crossing the T" of a Japanese battle line; the last engagement ever battleship to battleship.
The End of the Glomar Explorer
She is gone, not so much for lack of ingenuity as to obsolescence as a deep water driller, for which she was never intended.
The Explorer was built to retrieve a Soviet submarine from deep Pacific waters. She was described as a "magnesium mining vessel". Truth is, she had not only the most sophisticated derrick of the time but twin jackup legs to assist in lifting a specialized platform to carry the wreck, and a moon pool the size of a football field.The Explorer accomplished her mission and lifted most of the Soviet submarine from 15,000'. After conversion, at one time she was the largest drill ship in the world. It breaks our hearts to see big iron going to the wreckers; but it is as it ever was.
The Business of the Tribe
Consult the Alumni Directory attached in the side bar to the blog. Verify your information to gsfalumni@gmail.com. The Directory is an immense resource. We're here to help as we always have been.
On a lighter note, some of us have been having a little fun.
Bruce and Betty Kerr are on an extended visit to France; Toulouse (pun intended) followed by the Pyrenees.
Mike and Julie Dawson have quite wisely set up a home-away-from-home in Santa Fe, NM, where the weather is cooler and the night skies are bright with stars. They maintain a home in Sugar Creek, where the golf is good and the wine is cool.
Matt and Amy Ralls now call Austin home. Matt is the Executive Chairman of Rowan Companies; I can't recall a more skilled executive with a kinder heart. In the company of Russ Luigs, Jack Ryan and Bob Rose.
Long Khuu has moved to Kinder Morgan from Atwood. Good things will result, we're sure.
Had a nice message from Ian Clydesdale, to wit: "I joined Global Marine in the UK in October 1992 and left Transocean to join Shelf Drilling ... in December 2012. Life in Dubai is a lot of fun. The last two years have involved a lot of hard work bringing Shelf to independence from Transocean, something we finally managed to achieve in December 2014...".
Renee Dees has moved to Vantage Drilling.
Old friend Robert Bowden is consulting, as is yours truly. A word to the wise: depending on one's interests and constitution, consulting may be the next step. One can maintain a bit of freedom whilst generating income; and to be honest, one can get bored. Never thought it would happen to me, but I missed the action.
Yours truly has the advantage of being married to a wine specialist. This is another conundrum. I, the wayward, was waylaid by a lass who can obtain wine. Totally helpless to resist.
Yours truly has the advantage of being married to a wine specialist. This is another conundrum. I, the wayward, was waylaid by a lass who can obtain wine. Totally helpless to resist.
Being of a certain age, we continue to retire. As noted by our correspondents:
Steve Bilsing
Mark Dreith
Kathi Grier
Janet Kidd
Missing; please do contact and forward information:
Brenda Hethcoat
Christie Cable
Harmony Packard
Dru Duran
Joanne Snyder
The Last Word
This is an extremely difficult market for offshore folks and we need to gather around our friends and comrades. If someone needs help, then it's up to us to provide it. It's a crazy business and always has been. Opportunity does present itself, sometimes in unexpected forms.
We are the Tribe. We are talented and resourceful. In that we should find comfort. Who better can we serve than each other?
As always your respectful servant,
Ed Collins aka Seahorse.
We are the Tribe. We are talented and resourceful. In that we should find comfort. Who better can we serve than each other?
As always your respectful servant,
Ed Collins aka Seahorse.
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