One of the leading industries worldwide is the offshore oil production sector. After all, oil is a critical resource for everyday use. It’s no wonder that many businesses invest in oil and gas, two of the richest components that help create technology as we know today.
To obtain oil and gas, you need access to the latest technology and skilled operators. Besides using a mobile offshore production unit, you’ll need to plan carefully if you want to extract the most resources. Doing so should help you get ahead of the competition.
Nonetheless, countless offshore oil production companies worldwide will compete with one another to gain the upper hand. Doing so requires money and manpower, both of which can only be attained through successful operations.
To no surprise, the United States of America continues to be the leading country worldwide in terms of offshore oil and gas production. But what about other countries? Most importantly, what about Singapore?
During the early 80s, Singapore’s offshore oil production industry was a powerhouse. While the industry started with limited supplies and services to vessels in Malaysia and Indonesia, offshore oil and gas production services grew larger in numbers as the industry continued to expand across South East Asia. Singapore took the opportunity to extend their reach to other countries in Asia, resulting in becoming one of the country’s most successful industries.
STRONG BEGINNINGS
The success of hundreds of offshore oil production companies continued in the mid-2000s when thousands of jobs in the sector gave way for more vessels and rigs. As a result, Singapore was considered to be a potential offshore hub in Asia, almost on the same level as other countries in Europe and America.
However, such unprecedented progress resulted in unforeseen consequences. Family-owned companies ordered vessels for themselves with borrowed money and almost little sustainability. More companies began to do the same without any value for competence and management. Therefore, numbers fluctuated as the future of the offshore oil production industry in Singapore started to look dim.
It was in 2014 when oil prices dropped per barrel. The offshore oil production industry saw its flaws grow further with unintended repercussions. Companies weren’t able to cover their costs as revenues failed to deliver. At this moment, Singapore saw the crisis of its offshore oil production services.
NOT ALL IS LOST
Despite the overwhelming number of errors, the industry was able to get back up on its feet. In 2018, oil prices returned to normal, as if offshore oil production companies were seeing a shining glimmer of hope. After thousands of jobs lost in the crisis and billions of dollars in debt, the future looked brighter.
But while all seemed fortunate, it was apparent that the offshore oil production industry could never restore its glory. What’s lost cannot be recovered once more, especially after losing billions of dollars in debt.
THE CURRENT STATE OF THE INDUSTRY
After losing billions of dollars and thousands of employees, everything looked grim for offshore oil production companies in Singapore. People were reluctant to invest in offshore sectors due to the unforeseeable consequences brought by the financial crisis of 2014. But a lot of things have changed since then. Is it true that the industry won’t retain its former glory?
One year later, the industry has been through a lot of changes. While 12 months doesn’t seem like a long period, for the offshore oil production industry, it was just enough to give the country a sign of hope. In 2019, The offshore industry regained its confidence as sales improved and companies picked up the pace. The competition was fierce, which helped the global economy overall.
At the time, everything was going well for the offshore industry. But nothing was still certain. No one had a clue about the future of the industry despite it picking up the pace. One thing’s for sure, however, and it’s that offshore oil production companies can rejoice, knowing that the industry is back on its feet again.
You could say that the offshore oil production industry won’t restore its long-lost glory, but how sure are you? Nothing’s certain anymore, and you could even say that good things might come our way when the numbers start to rise. What matters is that businesses can look towards offshore services again, now that the industry has recovered from the past.
Instead, we should remain hopeful that Singapore’s offshore oil production industry will once again become a leading powerhouse in South East Asia. Sure, no one predicted that the offshore sector in Singapore would dwindle down and fall hard. But you could say the same thing when the industry slowly recovered its losses after 2014.
If looking for expert offshore companies, you could count on MOPU Holdings in Singapore. Contact them at +65 6206 0940 to know more about their services.
