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Offshore oil drilling has been declining for more than five years, but the industry took a sharper turn south in the past few weeks. The companies still standing are now facing more existential questions. Several are carrying debt loads that look unsustainable at current prices.

The shakeout is starting. On Thursday, Diamond Offshore Drilling (ticker: DO) elected not to make an interest payment and said it would work with advisors to evaluate its capital structure. The company isnt in defaultit has a 30-day grace periodbut the market is registering skepticism. Shares are trading at 79 cents, down from $12 a year ago.

More such announcements are likely in the months ahead. Producers are cutting back on drilling to conserve cash now that oil prices are below $30 per barrel. On Friday, West Texas crude futures closed at $18.27, a new 18-year low. Day rates for drilling, which had been rising at the start of the year, are once again tumbling. Several companies that had once been worth several billion dollarslike Noble Corp. (NE), Nabors Industries (NBR) and Transocean (RIG) have now dipped below $1 billion or even $100 million.

Evercore analyst James West says there are two companies that have strong enough balance sheets and operations to weather the storm, though he doesnt think the stocks are buys. Transocean has contracts with major producers Equinor (EQNR) and Royal Dutch Shell (RDS.A) that give it several years of runway. Meanwhile Maersk Drilling (DRLCO) has a balance sheet that gives it similar ballast. But he rates both In-line instead of Outperform, given the prolonged downturn and uncertainty ahead.

On the other side, Valaris (VAL), Pacific Drilling (PACD), and Noble are likely restructuring candidates. Each of those stocks trades under $1 and faces serious challenges ahead.

Noble declined to comment. Pacific Drilling and Valaris didnt respond to a request for comment.

Offshore oil drilling doesnt look like it is going away entirely, of course. Major oil companies like Exxon Mobil (XOM) and Shell have been betting big on offshore projects and have kept them going, even as they cut other spending to deal with the oil price downturn.

If the offshore companies werent so leveraged youd say they were in a better position, West said. Utilization and pricing will drop, but not nearly as bad as a U.S. land fracking company. Offshore spending may be down 10%-15%, but thats not as bad as the 40% expected drop in U.S. land drilling. Oil service giant Schlumberger (SLB) said on its earnings call Friday that it is seeing pockets of resilience in offshore drilling in places like Australia.

The problem is several offshore drillers have too much leverage, and their coming debt maturities and lack of free cash flow mean that the stocks likely wont work well as investments.

West expects multiple companies to restructure and for the industry to consolidate aggressively afterward. Its too early to bet on the winners in this case. Bankruptcies could wipe out the equity of some companies. The industry could fall from 15 sizable players to between three and five. The bigger get bigger and stronger and gain more market share and the weaker get smaller and weaker and get forced out of the market, West said.

He thinks that the major oil service companies are in relatively better shape, making their stocks worth buying at these levels. That includes Schlumberger, which drills on land and in the ocean. Its decision to cut its dividend pleased Wall Street, because the business looks much more sustainable now. And as the shakeout comes closer, Schlumberger is likely to be a winner, along with fellow major service company Baker Hughes (BKR), West predicts. Oil inventory is piling up so fast that it will likely be a year at least before business picks up, so investors will have to be patient. These are fantastic opportunities to get in, but youve got a waiting period before you get paid, he said.

He also rates Halliburton (HAL) at Outperform, but sees it as less attractive than the other two.

Meanwhile, people comfortable investing in risky debt may see more opportunities in offshore drilling companies.

The credit investors are much more interested here than the equity investors, says West. The market caps are so low that if you take any kind of real position you basically own the company or at least get a board seat.

Write to Avi Salzman at avi.salzman@barrons.com

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Offshore Oil Stocks Are Sinking. Heres What to Buy. - Barron's

PUBLISHED: 16:59 April 24, 2020 | UPDATED: 17:18 April 24, 2020

Adrian Zorzut

The government of French President Emmanuel Macron has banned companies with overseas tax havens from accessing coronavirus rescue funds. (Photo by LUDOVIC MARIN / PISCINA / AFP via Getty Images)

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Almost four years after its creation The new European is going strong through print and online, offering a pro-European perspective on Brexit and reporting on the political response to the coronavirus outbreak, climate change and international politics. . But we can only continue to grow with your support.

French Finance Minister Bruno Le Maire has adapted European men in Denmark and Poland, which recently introduced legislation banning tax-exempt companies from accessing vital coronavirus rescue funds.

He told France Info: It is worth noting that if a company has its tax headquarters or subsidiaries in a tax haven, I mean very strongly, it will not be able to benefit from state financial aid. .

There are rules to follow. If you have benefited from the state treasury, you will not be able to pay dividends and you will not be able to buy shares,

And if its headquarters are in a tax haven, its obvious it cant benefit from public support.

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The government of Emmanuel Macron will legalize the law this Wednesday through a finance bill with the help of senators from the Centrist Union group (a group of liberal-moderate politicians).

Many Britons have supported the move to Twitter. One person wrote, Excellent strategy. Why dont we have the balls to do the same? Maybe because many Tory donors and conservatives use tax havens outside the sea?

Another said: @ 10DowningStreet should follow this example. This is a great opportunity to tell all these tax shipping companies to apply for financial assistance from their country to support their tax exile status. .

Asking the UK to keep up the demand has picked up pace and a petition is now circulating on an official government website with 1,000 signatures. You can access it here.

Poland introduced similar measures on April 8, while Denmark followed suit on Saturday.

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Almost four years after its creation The new European is going strong through print and online, offering a pro-European perspective on Brexit and reporting on the political response to the coronavirus outbreak, climate change and international politics. . But we can only rebalance the far right wing of much of the UK national press with your support. If you value what we do, you can help us by contributing the cost of our journalism.

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France latest European country to block coronavirus bailouts for firms with offshore tax havens - My Scoop 24

The French government has stuck to a relatively low ambition for bottom-fixed offshore wind in a decree for its multi-year energy plan (PPE) published today, despite industry criticism.

Paris plan foresees raising the countrys 2028 offshore wind target to between 5.2GW and 6.2GW, up from a range of 4.7-5.2GW previously envisaged, but identical to targets proposed in a draft presented in January of this year. The PPE also fixes an interim target of 2.4GW for 2023.

Even if the ambitions could have been higher for offshore wind, we will implement the road map and we will propose several measures to make sure that the tenders calendar is respected, Matthieu Monnier, offshore wind specialist at French wind association FEE told Recharge.

We fear some delays due to new procedures and preliminary investigations but Im sure that the administration is really open to fit with the calendar set up by the PPE.

While the overall offshore wind target doesnt live up to Frances massive potential, the plan puts the country in a global leadership position when it comes to floating wind, which can be seen in a tendering schedule for the coming years.

As part of the proposal, 750MW of floating wind is scheduled to be auctioned off by the end of 2022 250MW next year in Brittany and another two zones of 250MW in the Mediterranean.

In bottom-fixed, a total of 2.5-3GW is slated for tender by the end of 2022, including the already auctioned off 600MW in the Dunkirk zone.

Another 1GW in fixed offshore wind is due to be tendered-off this year off the coast of Normandy, followed by 500MW to 1GW in the southern Atlantic coast in 2021 or 2022, and a further 1GW in fixed offshore at a yet-undisclosed location in 2023.

From 2024 on, the government plans annual offshore wind tenders of 1GW per year, which could be either be fixed or floating.

With the planned targets, the share of wind power in France's energy mix will rise from a current 7.4% to almost 28% by 2028, according to FEE.

The objectives set by the government for the coming years represent a real step forward and a guarantee of confidence placed in wind power, FEE president, Nicolas Wolff, said.

Nevertheless, we will be vigilant about implementation and our ability to generate the required volumes of new projects each year [1,850MW per year or 80 projects per year].

FEE also warned the French government that measures must be put in place quickly as part of a post-Covid-19 recovery plan, as for more than a month , all wind development and construction activities have been idling due to containment measures and the knock-on economic slowdown.

Paris simultaneously published its national low carbon strategy through 2050, when France aims to become carbon-neutral.

The transformations undertaken since the beginning of the five-year period to reduce our overall greenhouse gas emissions in transport, as in industry, energy and waste are now fully confirmed. This is good news for the planet and for future generations, said Elisabeth Borne, Frances minister for the ecological transition.

The multi-year energy plan is seen as a means to reach France's target to cut greenhouse gas emission by 40% by 2030 compared to 1990 levels, while increasing the share of renewables in the country's gross final energy consumption to 33%.

France also has a target to simultaneously reduce the share of nuclear power in its electricity production to 50% by 2035, from about three quarters now.

The PPE targets 24.1GW of onshore wind in 2023, which then is slated to expand to 33.2-34-7GW in 2018. In solar, the targets are 20.1GW by 2023, and 35.1-35.1GW by 2028.

The plan also includes targets for EVs three million by 2028 and plug-in hybrids, as well as reductions in fossil fuel-generated power usage.

UPDATED with comment from French wind energy association FEE

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France sticks to low-end ambition in bottom-fixed offshore wind - Recharge

A new survey had laid bare the depths of the Covid-19 crisis afflicting the North Sea oil and gas industry, the RMT trade union said.

Two-thirds of respondents rated their employers response to the Covid-19 outbreak as average or worse, according to RMT.

Only 15% of offshore workers are entitled to full sick pay if they need to self-isolate or contract the virus, while 43% have not been issued with any PPE gear.

Social media has been awash with complaints from offshore workers about testing and social distancing on helicopters and platforms in the North Sea.

Numerous workers have been airlifted from platforms after showing symptoms or contracting the coronavirus.

RMT received 270 responses to its survey, which equates to 10% of its total membership in offshore oil and gas.

The survey was carried out from April 15-18 and coincided with the Offshore Coordinating Groups (OCGs) first participation in the Pandemic Steering Group (PSG), set up by Oil and Gas UK (OGUK).

OCG, a coalition or trade unions, set out its objectives for testing offshore workers, aviation and helicopter transport, access to furlough for all offshore workers and developing best practice amongst employers.

RMT general secretary Mick Cash said: RMT members across the offshore industry must be heard by employers and the Health and Safety Executive during this disturbing period.

We are calling for the PSG to deliver in the areas that the OCG trade unions have identified as priorities for our members.

Furthermore, it is scandalous that key energy workers are left relying on statutory sick pay when this industry is as vulnerable as any other to Coronavirus contagion.

A spokeswoman for OGUK said: The Unions are members of OGUKs PSG, which continues to work with multiple stakeholders to ensure we are doing everything we can to protect the health and welfare of our workforce.

The industry has implemented a range of measures to manage and mitigate the spread of Covid-19 across our essential workforce. These include robust checks prior to mobilisation, temperature checks and the roll-out of a special protective face covering for those travelling offshore by helicopter.

The PSG is also actively pushing for expanded testing capability across our workforce as an additional preventive measure to stop the virus reaching our offshore platforms.

Additional measures to protect our workforce whilst offshore include social distancing, staggered mealtimes, and where possible single person cabin occupancy.Taken together weve got a comprehensive response and we continue to develop this through listening to our people

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Survey shows North Sea workers' dismay at Covid-19 response - News for the Oil and Gas Sector - Energy Voice

April 21 (Reuters) - Offshore oil driller Valaris PLC is preparing to start talks with creditors to see if they can agree on terms for a possible bankruptcy filing, as it grapples with a $6.5 billion debt burden and an unprecedented plunge in U.S. crude prices, people familiar with the matter said on Tuesday.

Reuters reported last month that the London-based company was working with debt restructuring advisers as it struggled to cope with a rig accident and falling energy prices.

Since then, U.S. crude futures have traded in negative territory for the first time in history amid a supply glut and a collapse in demand brought about by the coronavirus outbreak, putting further pressure on the companys customers, which are mainly large oil companies.

Valaris, which employs about 5,800 people worldwide, in recent weeks hired corporate restructuring experts at turnaround firm Alvarez & Marsal, the sources said.

The sources requested anonymity because the deliberations are confidential. Valaris and Alvarez did not respond to requests for comment.

U.S. President Donald Trump on Tuesday directed federal officials to formulate plans for steering money to U.S. oil and gas companies, underscoring the turmoils severity on the industry.

Valaris, formed a year ago through the merger of Ensco and Rowan Companies, plans to attempt negotiations with creditors to gain support for a restructuring plan before a bankruptcy filing, the sources said.

Known in restructuring circles as a prearranged or prepackaged bankruptcy, such a deal could limit the time Valaris spends navigating court proceedings, the sources added.

Any bankruptcy filing is still weeks or months away, the sources said. Valaris could also try to restructure its debt outside of court proceedings and avoid bankruptcy, though corralling enough creditors to do so would be challenging, one of the sources added.

Debt restructuring experts at law firm Kirkland & Ellis LLP and investment bank Lazard Ltd have also been advising Valaris, Reuters previously reported.

S&P Global downgraded the companys credit rating deep into junk territory on Monday, pushing up its borrowing costs. The credit ratings firm said the move reflected the offshore oil drillers unsustainable debt, deteriorating liquidity and high likelihood it will restructure its finances.

Valaris had roughly $1.7 billion of liquidity at the end of 2019, about $100 million of it in cash and the rest available under a credit line. It faces a $123 million debt maturity this year, in addition to about $400 million in estimated interest expenses, ratings firm Moodys Investors Service Inc said in March.

Valaris also plans to spend up to $160 million this year, including on idle drilling rigs that are not bringing in revenue, according to Moodys. Valaris unsecured bonds trade at less than 20 cents on the dollar, according to S&P, reflecting creditors concerns about repayment.

Valaris earlier this year reported an accident that damaged one of its rigs off the coast of Angola. As a result, Frances Total SA terminated its contract with the rig, which was among Valariss most lucrative. (Reporting by Mike Spector and David French in New York Editing by Marguerita Choy)

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Offshore driller Valaris to explore bankruptcy with its creditors-sources - Reuters

Those holding W&T Offshore (NYSE:WTI) shares must be pleased that the share price has rebounded 45% in the last thirty days. But unfortunately, the stock is still down by 47% over a quarter. But that will do little to salve the savage burn caused by the 64% share price decline, over the last year.

Assuming no other changes, a sharply higher share price makes a stock less attractive to potential buyers. While the market sentiment towards a stock is very changeable, in the long run, the share price will tend to move in the same direction as earnings per share. The implication here is that deep value investors might steer clear when expectations of a company are too high. Perhaps the simplest way to get a read on investors expectations of a business is to look at its Price to Earnings Ratio (PE Ratio). Investors have optimistic expectations of companies with higher P/E ratios, compared to companies with lower P/E ratios.

Check out our latest analysis for W&T Offshore

W&T Offshores P/E of 4.58 indicates relatively low sentiment towards the stock. If you look at the image below, you can see W&T Offshore has a lower P/E than the average (8.1) in the oil and gas industry classification.

W&T Offshores P/E tells us that market participants think it will not fare as well as its peers in the same industry. Many investors like to buy stocks when the market is pessimistic about their prospects. You should delve deeper. I like to check if company insiders have been buying or selling.

Probably the most important factor in determining what P/E a company trades on is the earnings growth. Earnings growth means that in the future the E will be higher. That means even if the current P/E is high, it will reduce over time if the share price stays flat. Then, a lower P/E should attract more buyers, pushing the share price up.

W&T Offshore saw earnings per share decrease by 70% last year.

Its important to note that the P/E ratio considers the market capitalization, not the enterprise value. In other words, it does not consider any debt or cash that the company may have on the balance sheet. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.

Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio.

Net debt totals a substantial 205% of W&T Offshores market cap. This is a relatively high level of debt, so the stock probably deserves a relatively low P/E ratio. Keep that in mind when comparing it to other companies.

W&T Offshore has a P/E of 4.6. Thats below the average in the US market, which is 13.3. The P/E reflects market pessimism that probably arises from the lack of recent EPS growth, paired with significant leverage. What is very clear is that the market has become less pessimistic about W&T Offshore over the last month, with the P/E ratio rising from 3.2 back then to 4.6 today. For those who like to invest in turnarounds, that might mean its time to put the stock on a watchlist, or research it. But others might consider the opportunity to have passed.

When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this. So this free report on the analyst consensus forecasts could help you make a master move on this stock.

Of course you might be able to find a better stock than W&T Offshore. So you may wish to see this free collection of other companies that have grown earnings strongly.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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How Does W&T Offshores (NYSE:WTI) P/E Compare To Its Industry, After Its Big Share Price Gain? - Simply Wall St

DUBLIN, April 23, 2020 /PRNewswire/ -- The "Offshore Wind Transmission Report" report has been added to ResearchAndMarkets.com's offering.

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Offshore wind energy is poised to grow significantly over the next decade. Strong support from policymakers and regulators, the drastic fall in technology costs, demonstrated competencies in installation, and economic success in recent tenders has spurred growth not only in Europe but also in the Americas and Asia.

While offshore wind has garnered the political support and investor confidence, several challenges remain. A key bottleneck is the availability and development of grid infrastructure, both offshore and onshore. This challenge, however, presents the opportunity to deploy new and innovative technologies.

The Offshore Wind Transmission Report will analyze the market size and opportunity for offshore wind transmission across the globe. It will provide an overview of the recent policy developments and mandates for offshore wind development, examine the costs and present the various models and technology options for developing offshore wind transmission infrastructure. It will provide information on existing and planned offshore transmission projects and on the key technology players in the industry.

The report will comprise four parts.

Part 1 will be the Executive Summary.

Part 2 of the report will provide an analysis of the global offshore wind transmission sector. It will have seven distinct sections:

Part 3 of the report will profile over 20 countries where offshore wind projects already exists, are underway or planned in the near future. Each country profile will include:

Part 4 of the report will be the appendix. It will include a note on sources and methodology and list of acronyms.

This report is indispensible for any organisation interested in the offshore wind energy industry - utilities, developers, system operators, equipment manufacturers and suppliers, EPC contractors, service and technology providers, investors/lenders, research institutes, industry consultants, regulatory agencies, development institutions, etc.

The report will be available in a Power Point presentation (converted to PDF)

Key Topics Covered

Part 1: Executive Summary

Part 2: Global Offshore Wind Transmission Sector2.1 Offshore wind developments

2.2 Market size and opportunity

2.3 Offshore transmission development routes

2.4 Offshore wind transmission technology

2.5 Key technology players

2.6 Offshore wind transmission costs

2.7 Offshore wind projects

Part 3: Country Profiles3.1 Americas

3.2 Europe

3.3 Asia

Part 4: Appendix4.1 Sources and methodology4.2 List of abbreviations

For more information about this report visit https://www.researchandmarkets.com/r/9p8r89

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

Media Contact:

Research and Markets Laura Wood, Senior Manager press@researchandmarkets.com

For E.S.T Office Hours Call +1-917-300-0470 For U.S./CAN Toll Free Call +1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1904 Fax (outside U.S.): +353-1-481-1716

View original content:http://www.prnewswire.com/news-releases/global-offshore-wind-transmission-market-overview-2020---the-availability--development-bottleneck-of-grid-infrastructure-presents-an-opportunity-to-deploy-new--innovative-technologies-301046104.html

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Global Offshore Wind Transmission Market Overview 2020 - The Availability & Development Bottleneck of Grid Infrastructure Presents an Opportunity...

US utility Dominion Energy and renewable energy firm Orsted have announced they are on track with the implementation of an offshore wind energy pilot project in Virginia, despite disruptions to the global economy due to Coronavirus.

The Coastal Virginia Offshore Wind energy pilot, comprising two 6MW turbines developed by Siemens Gamesa in Esbjerg, Denmark, is expected to be online by the end of this year to power 3,000 homes.

Onshore construction for the pilot project began last year in June to facilitate the interconnection of the turbines at a company substation near Camp Pendleton.

Read more about:Wind energyDominion Energy

Mark D. Mitchell, vice president of generation construction at Dominion Energy, said: This is a monumental step toward the installation of the first offshore wind turbines in federal waters, which will deliver clean, renewable energy to our customers.

The construction of these two turbines will help us reach our goal for net-zero emissions (2050) and position Virginia as a leader in offshore wind.

Christoph Schorge, the CEO of EEW Group (developers of turbines monopiles, transition pieces and anode cages to be used as foundations for the project), said: Even though this project consists of two monopiles and transition pieces, it has profound importance for the development of the US offshore wind market, as this is the first project that successfully has passed all phases of BOEM approval.

This milestone will pave the way for large-scale commercial projects to follow.

The pilot project was first announced more than two years ago and received approval in November 2018 from the State Corporation Commission.

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Offshore wind energy: Dominion to install first-ever in federal waters - Smart Energy

At the end of the latest market close, W&T Offshore, Inc. (WTI) was valued at $2.37. In that particular session, Stock kicked-off at the price of $2.56 while reaching the peak value of $2.95 and lowest value recorded on the day was $2.46. The stock current value is $2.70.

W&T Offshore, Inc. had a pretty Dodgy run when it comes to the market performance. The 1-year high price for the companys stock is recorded $6.94 on 04/24/19, with the lowest value was $1.07 for the same time period, recorded on 03/18/20.

Price records that include history of low and high prices in the period of 52 weeks can tell a lot about the stocks existing status and the future performance. Presently, W&T Offshore, Inc. shares are logging -61.10% during the 52-week period from high price, and 152.34% higher than the lowest price point for the same timeframe. The stocks price range for the 52-week period managed to maintain the performance between $1.07 and $6.94.

The companys shares, operating in the sector of basic materials managed to top a trading volume set approximately around 17.89 million for the day, which was evidently higher, when compared to the average daily volumes of the shares.

When it comes to the year-to-date metrics, the W&T Offshore, Inc. (WTI) recorded performance in the market was -51.44%, having the revenues showcasing -42.06% on a quarterly basis in comparison with the same period year before. At the time of this writing, the total market value of the company is set at 396.28M, as it employees total of 291 workers.

According to the data provided on Barchart.com, the moving average of the company in the 100-day period was set at 3.52, with a change in the price was noted -1.69. In a similar fashion, W&T Offshore, Inc. posted a movement of -38.50% for the period of last 100 days, recording 4,806,809 in trading volumes.

Raw Stochastic average of W&T Offshore, Inc. in the period of last 50 days is set at 53.80%. The result represents downgrade in oppose to Raw Stochastic average for the period of the last 20 days, recording 85.12%. In the last 20 days, the companys Stochastic %K was 80.11% and its Stochastic %D was recorded 72.92%.

Considering, the past performance of W&T Offshore, Inc., multiple moving trends are noted. Year-to-date Price performance of the companys stock appears to be encouraging, given the fact the metric is recording -51.44%. Additionally, trading for the stock in the period of the last six months notably deteriorated by -37.50%, alongside a downfall of -59.94% for the period of the last 12 months. The shares increased approximately by 19.05% in the 7-day charts and went down by 38.46% in the period of the last 30 days. Common stock shares were lifted by -42.06% during last recorded quarter.

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Boiling and ready to burst as W&T Offshore, Inc. (WTI) last month performance was 64.63% - The InvestChronicle

Various streams of the energy transition and none more thanoffshore windare seen as possible routes to new, less-riskyrevenues for big oil companies and their supply chains. As the oil and gas sector faces the triple crises of the coronavirus, the resulting recession and the halving of oil prices, can power and renewables plug thegap in their finances?

Many big oil exploration companies have already announced huge spending cuts, resulting inscores of exploration projectsbeingcanceled. For oil-field contractors like Halliburton, Schlumberger and Wood (formerly the Wood Group) that leaves a substantial shortfall in their bottom line.

In Europe, offshore wind has long been seen as an opportunity for North Sea oil services companies to tap new sources of revenue. With Exxon, Shell, Total,BP and other producers cutting billions from their spending, those oil-field contractorshave a lot of ground to make up.

In the next five years alone, globaloffshore wind investment will top 200 billion ($218 billion), according to a January report by Wood Mackenzie. By 2025 there will stillbe twice as much investment in upstream oil and gas (101 billion) compared to offshore wind (45 billion), WoodMac believes, buta decade ago the difference was two orders of magnitude.

There are limited points of actual overlap in the work done by supply chain companies between fixed offshore wind and offshore oil and gas developments, said Mhairidh Evans, principal analyst forupstream supply chain research at Wood Mackenzie, who co-authored the report.

Still, the similarities that do exist alongside the rapid growth trajectory for offshore wind are drawing in many ofthe larger oil and gas service companies,such as Saipem and Subsea 7, Evans said. "When we start to think about floating wind, the overlaps increase. Offshore oil and gas service companies have the expertise on deepwater and harsh environment operations and floating structures."

Wood, headquartered in Aberdeen, Scotland, is one of the 10 largest oil services companies globally. It has been diversifying its business aggressively in recent years.In 2014, 96 percent of its revenue was from the oil and gas sector. Now mid- and upstream oil and gas make up one-third.

In addition to offshore wind, Wood is also pushing into onshore renewables. Last week the company announced $100 million worth of work building onshore wind farms in the U.S.

The events of the last two months only serve to reinforce our view that our strategy is the correct one,"Martyn Link, Wood's chief strategy officer, told GTM in an email. "Were not fully insulated from the impact of the oil price crash.But as a more diverse business, were certainly much more resilient."

Were optimistic about the offshore wind market as we can see significant capital investment being planned over the next five years in many of our priority regions," Link said.

Wood plans to play a role in all stages of an offshore windprojects lifecycle, from design and planningthrough to operations and maintenance. It's also makingmoves in other sectors, including carbon capture and storage andpower transmission.

Equinor, the Norwegian oil producer, has made an early push into floating offshore wind and sees significant overlap with its traditional businesses.The list ofcontractors for Equinor's88-megawatt Hywind Tampen floating offshore wind project includes a number of firms with an oil and gas background, including Subsea 7 and Kvaerner.

Our strategy todevelop into a broad energy company, to develop profitable oil and gas projects, and to grow our renewable business is still valid in the current downturn in the oil and gas market, an Equinor spokesperson told GTM.

This is not the oil industrys first crisis,and many oilfield service companies are still recovering from the lastprice crash.

Already, companies were looking to diversify, to balance their upstream businesses with something less directly exposed to commodity price fluctuations,be that renewables, downstream/chemicals and so on," said WoodMac's Evans.

"Another downturn,just as the service sector was getting back on its feet again,puts that into a more urgent light."

Oil services companies with the most specific crossover with offshore wind's needs will reap the most immediate rewards. But even as the gap between the two sectors narrows, offshore windwon't be enough to patch up the oil sector's triple crises on its own.

Is offshore wind the thing that will come to the oil and gas supply chains rescue? I doubt it," said Evans."But for some specific companies, it could really help falling revenues and spare capacity."

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Can Offshore Wind Prop Up Oils Supply Chain Through the Price Crunch? - Greentech Media News