Oil Field Services To Bear The Brunt Of Price Collapse


Proven performance and plenty of options — that's what our product While production, rig counts , and employment statistics are good indicators of the expansion or contraction of the oil and natural gas industry, the Bureau of Labor Statistics Producer Price Index PPI tracks the rates oil and natural gas service firms are receiving for goods and services used in producing oil and natural gas. Contact Us For the Media.

Related Categories


DuPont offers high quality, productivity and sustainable solutions for the printing and package printing industry. Biobased solutions addressing markets such as animal nutrition, detergents, textiles, carpets, personal care, and biofuels.

DuPont develops biobased solutions using enzymes, microbes, and other bioactives to help improve the performance and Discover how our sustainable business consultants customize solutions based on DuPont best practices to help clients improve We help our customers cost-effectively overcome their challenges with our range of additives and modifiers for polymers.

DuPont collaborates with customers around the world, providing a spectrum of polymer materials and expert application DuPont Agriculture offerings deliver global nutrition through higher crop yields and healthier foods while developing solutions to help meet the world's energy needs. See how our broad family of materials and global development experts can help the automotive industry reduce emissions and improve fuel economy, design, safety, and affordability.

At DuPont, we're focused on dynamic science that generates real-world solutions. We invite you to collaborate with our global teams to find science-driven, sustainable energy solutions.

At DuPont, we're putting science to work in the food and beverage industry — improving the nutritional value of food, ensuring food safety, and finding smart, sustainable solutions to feed a growing population. DuPont offers a broad range of healthcare products and high-performance materials that help create safer healthcare environments, contribute to innovations in medical devices and help protect the health of patients and healthcare providers worldwide.

DuPont brings science-powered technologies, products and services to the marine industry that facilitate regulatory compliance enhance performance and promote safety. DuPont Mining products and services help improve extraction, personal protection, safety and more. Processing and transporting of highly abrasive and corrosive, bitumen, slurry and tailings require the innovation and technology that DuPont can provide. DuPont provides end-to-end technical expertise and a wide range of cost-effective materials to help create packaging innovations that support partners' branding, performance, and sustainability goals.

Today you need more from your suppliers than just materials. You need a resource that can carry a project from concept to commercialization. DuPont Performance Polymers can be that partner. In the face of growing global industrialization, DuPont takes safety and protection seriously. Learn how DuPont continues to improve upon its materials and workplace safety performance to help keep all of us safe in the toughest conditions.

They are a proven solution for sealants in meat and dairy packaging structures, footwear, wire and cable insulation, as well as photovoltaic encapsulants and sheets. This results in energy savings and fast packaging speeds. These performance advantages lead to fewer package failures, which help reduce waste. Our Approach The DuPont approach to solving global challenges is rooted in our science and engineering expertise. Our Company See what makes DuPont one of the most successful science and engineering companies in the world.

Sustainability DuPont creates solutions for safe, sufficient crops; renewable energy; and protection for the planet. Halliburton, Schlumberger, Transocean have been forced to slash the rates that they charge oil producers for their services. Their refining units benefitted from lower oil prices, partially offsetting a decline in revenue. But for oil field services companies, which earn their money on drilling activity and not the price of oil, they are feeling the pinch the hardest.

All sorts of kit is being auctioned off at cut rate prices, as pipes, machines, and heavy equipment pile up in scrap yards. If oil majors like Total, BP and ExxonMobil manage to negotiate lower costs with their suppliers, allowing them to earn more money at a given price for a barrel of oil, the future could be much grimmer for oil field services. Gone are the days when a shortage of rigs bid up their price.

That means that even if oil prices rebound, as they have started to do, there is little reason to feel optimistic about the fate of the oil field services industry. Production companies will squeeze savings out of their suppliers. Baker Hughes said a few days later that it would lay off 10, workers. Of course, when oil prices rebound drilling will pick up.

More drilling activity will mean more demand for equipment and rigs, leading to a concomitant rise in rig prices. That will benefit the Schlumbergers and Transoceans of the world.

But there is reason to believe the old days are gone, or at least not coming back anytime soon even with a rise in oil prices. First, producers will lock in savings now, signing contracts that keep service rates fixed. Second, at least according to oil executives, upstream producers are streamlining their operations, trimming fat so that they will be able to produce more with less.

The degree to which they can become more efficient remains to be seen, but having been forced to cut costs from low oil prices, the oil majors feel optimistic. The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.

Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction. Sanctions Find us on: Home Energy Oil Prices. Nick Cunningham Nick Cunningham is a freelance writer on oil and gas, renewable energy, climate change, energy policy and geopolitics.

Copyright © 2017 · All Rights Reserved · Maine Council of Churches