Executive Vice President of Investments, Crescent
Search every verified John Rynd interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. John Rynd, then CEO and President of Hercules Offshore, spoke at a Bauer Alumni Breakfast of Champions event in fall 2011. He discussed the cyclical nature of the offshore oil industry and described significant manpower shortages in both labor and professional roles. Rynd stated that the industry needs employees across all capacities, including accounting, finance, marketing, and logistics. Rynd addressed the industry's public perception following the Macondo incident, saying that the public and administration viewed the industry as "reckless cowboys ignoring safety." He provided an overview of Hercules Offshore's financial position, stating that the company entered a downturn with $90 million in cash and held about $130 million at the time of the talk. Rynd noted that Hercules owned 23 of the 36 cold stacked jackup rigs in the Gulf of Mexico and described cost-saving measures including workforce reductions, pay cuts, and reduced 401K matches. He also stated that the offshore oil industry is the second largest contributor to the US Treasury behind the IRS, generating $79 billion in offshore royalties and lease payments over six years.
“The offshore oil industry is an aging, very cyclical business with significant manpower shortages, both in labor and professional roles, and we urgently need people across all capacities including accounting, finance, marketing, and logistics.”
“Post-Macondo, the public and administration viewed our industry as reckless cowboys ignoring safety, but safety must be embedded from top to bottom, not just a manual on the shelf.”
“In 2009, the jackup rig market in the Gulf of Mexico hit its lowest count since the early 70s due to lack of access to capital, but the business has since recovered from 14 to 44 rigs industry-wide.”
“We currently own 23 of the 36 cold stacked jackup rigs in the Gulf of Mexico, making us the largest supplier of stacked rigs in the region.”
“From October last year to now, our contracted days increased from 44 to 77 with average day rates rising from $39,000 to $50,000, and despite a 15% labor pay increase, we reduced stack costs from $4,700 to $1,300 per day, saving about $25 million annually.”
“During the downturn, we laid off about half of our global workforce, took pay cuts, reduced 401K matches, and sublet office space, relying on experience and a playbook to survive the cycle with a motto: 'If you're going through hell, keep going.'”
“The offshore oil industry is the second largest contributor to the US Treasury behind the IRS, generating $79 billion in offshore royalties and lease payments over six years, with 79% of Gulf of Mexico production driven by independent companies.”
“ExxonMobil's global oil production from the US Gulf of Mexico is only 2%, Shell's and Chevron's about 4%, highlighting the significant role of independent companies in the region's production.”
“We entered the downturn with $90 million in cash and now hold about $130 million, which provides flexibility and peace of mind, especially in turbulent times where cash truly is king.”
John Rynd, CEO and President of Hercules Offshore, Inc., spoke during the fall 2011 breakfast series discussing the University of ...
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