What’s In Your Model?

What do Moore Stephens, a British accounting firm with a maritime specialty, and ODS Petrodata have in common? Coincidently, they both recently took a timely look at operating costs in the shipping and offshore industries respectively reminding us of a forgotten hidden risk. Moore Stephens is renown for its annual operating survey, which benchmarks vessel-running costs. This year’s issue OpCost 2010 arrived on our desk soon after our return from our Rio conference where Tom Kellock of ODS Petrodata made, in his extensive presentation on the drilling market outlook, a couple of anecdotal comments on Transocean’s operating expenses. As shown in the enclosed slide, the 1st quarter figures, from 2007 to present, for daily cash operating expenses for a “large” fleet grew at a double-digit rate.

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