Last week’s forum saw a variety of engaging discussions, with members focusing on market trends and operational challenges. There was a lively debate on whether to commit to long-term contracts or remain flexible with spot deals. Additionally, safety protocols took center stage as members shared experiences on integrating SPCC plans with routine safety briefings. Newcomers to the industry also chimed in, discussing what they prioritize during their first offshore assignments.
This Week’s Hot Topics
Leaning term or staying spot right now
This discussion dives into the pros and cons of locking in long-term contracts versus staying agile with spot deals. It’s a critical conversation as market conditions fluctuate. Read more here
When SPCC meets stand-up
Here, members are sharing insights on merging SPCC compliance with safety meetings. It’s a practical look at how to keep safety protocols engaging and effective. Read more here
What I look for on a first hitch
This thread offers valuable perspectives on what seasoned professionals focus on during their first offshore rotation. It’s a great read for both newcomers and those mentoring them. Read more here
That’s it for this week. Looking forward to seeing more of your thoughts and experiences on these topics. Have a productive week ahead!
I lean hybrid: lock about 70% baseload on 3–6‑month term and leave the rest for spot, like mixing a fixed mortgage with a floating card. One practical step is to set monthly triggers off WTI/Brent diffs, 3–2-1, and freight, then review them alongside EIA STEO updates (https://www.eia.gov/outlooks/steo/). If you want more certainty, a simple collar to ‘set a floor and leave the top’ on the term tranche keeps procurement sane while SPCC refreshers stay on the same cadence.
I add a ±15% swing clause to term barrels and revisit it in our Monday 7 a.m. SPCC safety brief so ops knows we’ll flex volume if WTI M1–M3 backwardation widens past $0.50; that’s saved us demurrage twice this year. Small caveat: bake in a clear ‘walk‑away price’ so the swing doesn’t morph into an unpriced spot position.
Building on @cjohnson92’s trigger idea, we key term vs — spot off basis: anchor term to scheduled runs and available ullage, and let 20–30% float to chase LLS–WTI dislocations. Simple step: if LLS–WTI > $2 or line apportionment hits, slide that float into one‑month term and lay a basis swap; “term buys you sleep, spot buys you stories.” Anyone layering a costless crack collar to protect term during turnaround season?