Surviving the Promises of Technology

Surviving Technology

Over the years, technology has played a heralded role in the oil and gas industry. It still does today. Pick up any trade publication and chances are you’ll find at least one well-worn tribute to its importance.

Yet, the fixation on hi-tech hasn’t been without problems. It’s even been value-destroying at times. We’d argue the industry’s intractable struggle with financial returns is due, in part, to spending on technology that isn’t justified. Continue reading “Surviving the Promises of Technology”

Yes, It Pays to Keep Customers Smiling

Featured Image: Yes, It Pays to Keep Customers Smiling

Yes, it pays to keep customers smiling—even in the midstream.

As midstream activity marches on in North America, customers show preferences for providers with strong operating and project-development skills. Professionalism also matters.

The need for solutions is diverse and widespread. Constraints in West Texas―ground zero of U.S. shale-oil production―crimp output. Natural gas in Appalachia seeks conditioning and outlets. Gulf Coast petrochemical and LNG facilities demand feedstock. Canadian producers beg for market access. Continue reading “Yes, It Pays to Keep Customers Smiling”

Travelers on a Road to Nowhere

Photo of a highway road leading to nowhere.

This post was updated on June 24, 2019. 

Imagine a contest between two horses. History suggests one of the animals, having lost most of its races to the competitor, is the slower of the two. You are given even odds. Would you bet on the reliably slower horse?
 
The answer, of course, is no. Only a glutton for punishment would take even odds on a horse that’s expected to lose.

Continue reading “Travelers on a Road to Nowhere”

For Oilfield Suppliers, It’s Adapt or Die

Image of oilfield worker standing next to a pump jack against an ominous sky.

This post was updated on June 26, 2019. 

Oil prices have rebounded from their 2014 collapse. Yet for upstream suppliers, it’s hard to tell.

It’s going to take more than crude in the $60s to rebalance the oilfield. The problem remains structural. In short, there are too many players chasing too little demand. Continue reading “For Oilfield Suppliers, It’s Adapt or Die”

Consumers Are Happier at the Pump Than You Might Think

Featured Image (Gas Tank Guage) v. 1.00

Listening to experts, one could be forgiven for assuming the traditional automobile and the lifestyle it supports are fast-approaching expiration. Hardly a day passes when a prognosticator of some sort doesn’t posit that the internal combustion engine—and the petroleum products that feed it—are officially passé.

If true, somebody forgot to tell the American consumer.

Assuming trends hold, 2017 will clinch the record for annual vehicle-miles traveled in the U.S.  This will mark the third consecutive year of record road travel, reversing declines stemming from the 2008 financial crises and the historically high petroleum prices that followed. Continue reading “Consumers Are Happier at the Pump Than You Might Think”

Integrated Oilfield Suppliers Plot Divergent Paths

Integrated Suppliers Plot Different Paths - Featured Image

As the oil and gas sector stirs with a hopeful sense of purpose, several of its largest and most influential suppliers are pursuing distinctly different strategies. It’s not just about which products and services will propel the industry forward. To some extent, the balance of power between providers and customers is at stake.

On one end of the strategic spectrum sit Schlumberger and GE Oil & Gas. With the help of recent acquisitions, both companies hope to meld oilfield equipment and services into a new seamless network, one capable of generating and interpreting streams of data for use in improving performance across all phases of a well. If successful, the impact could be far-reaching. Continue reading “Integrated Oilfield Suppliers Plot Divergent Paths”

Succeeding in a Cyclical Industry

Business Cycle Chart

Achieving sustained performance in the oil and gas industry can, quite frankly, be a challenge. A primary reason is cyclicality. For suppliers, the task of continually scaling one’s organization to match market temperament can prove especially tricky.

Numerous factors lead to the swings in demand that define the oilfield. Mercurial commodity prices top the list. Fluctuating exchange rates, capital availability, seasonality and weather, government policy, and geopolitical events also play their part. Continue reading “Succeeding in a Cyclical Industry”