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Oil industry suppliers see light at the end of the tunnel
A couple of oilfield roughnecks sitting on a stack of pipe, enjoying lunch in the late 1930's. These companies, which encompass oil drillers, engineering groups, oil services providers and seismic surveyors, have had to slash jobs, costs and investments to cope with the fallout from a 60 percent drop in the oil price since 2014. The tide may be turning now the oil price has stabilized but any recovery for these companies will be uneven because those that find it tough to cut capacity and costs will lag others with more flexible business models. "The oil price has gradually increased since it bottomed out in January, indicating a turning tide for the oilfield service industry expected in the second half of this year," consultancy Rystad Energy said. 'Boom and Bust - Supply and Demand' are common terms of the industry. Posted by: Besoeker 2016-07-29 |
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