Vessel shortage to buoy local O&M firms amid expected rise in activity

But Trump's plans may hurt oil prices, green projects: Experts

- Sue-Ann Tan

Local offshore and marine (O&M) companies are well-positioned to ride continued demand for their services in 2025, with activity in the offshore oil and gas industry expected to increase, experts said.

This is despite the possibility of oil prices softening in the longer term, should US President Donald Trump make good on his vow to "drill, baby, drill".

Ms Carmen Lee, OCBC Bank's head of investment research, said: "Trump's intention to achieve energy dominance for the US is expected to drive an increase in oil and gas activity, which will increase the available supply of oil.

This means that if demand remains constant, oil prices may be pressured."

Maybank analyst Jarick Seet said that O&M companies that charter out vessels like floating, production, storage and offloading vessels and provide other supporting services to the offshore oil and gas sector should do well for now, owing to a shortage of such assets.

But he warned that this demand could be offset by delays in offshore renewable projects, as Mr Trump is also seeking to focus less on the sustainability space.