An integrated model is developed for the short‐term and long‐term dynamic response of an offshore structure subjected to random wave excitation. A discrete linear, elastic model of the upper structure is coupled with an iterative linear quasi‐three‐dimensional finite element model for the pile‐soil medium, and the system is subjected to stochastic storms described by mean rate of arrival, joint probability distribution of storm duration and average intensity, and a random process that describes the variations of a statistical wave height measure during each storm. Sarpkaya's 1977 experimental information is used to specify values for CM and CD, in Morison's equation, consistent with the flow and response characteristics. Soil (clay) degradation, due to cyclic excitation, is followed during the passage of a storm. The indicator of soil degradation is taken to be the value of the horizontal foundation stiffness and the stiffness degradation is modelled by a homogeneous Markov process.