Infill Thinking Lifting the O&G knowledge curve
Oilfield service pricing moving higher cyclically is a good thing for all our readers (including operators, for current pricing is unsustainable and will destroy capacity in the long run).
That said, we stand at a tricky juncture in the cycle for oilfield service company decision makers trying to reset their prices. The situation is made delicate by the combination of two essential facts in oilfield reality today:
- Virtually every OFS company is starting to raise their prices, which is a catalyst for operators to price shop their work.
- The basis from which each contractor is increasing their prices varies widely from company to company. This can create dislocations in market share as prices move.
Essentially, pricing dispersion as the industry reverts to the mean creates an inefficient market that operators can take advantage of by moving their business around.
In this update, we provide a visual to help readers understand the oil service price spectrum and provide some food for thought for decision makers grappling with re-pricing their services.
There’s a lot more to this story…
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