Oilfield Services At A Crossroads

As oil prices have steadily recovered over the past two years, the industry focus has shifted from cost reduction to long-term cost discipline. This focus on keeping costs lower for longer is nothing new. As the industry rebounded from past downturns, operators had every intention to rein in spending. But as the per-barrel price climbed, so too did the price of all services related to extracting each barrel out of the ground. 

Of course, the industry has not yet reached the triple-digit commodity prices that it experienced earlier this decade, and most indications suggest that it won’t anytime soon. Market forces are driving operators to work differently—to do more while spending less—and oilfield service (OFS) providers are under pressure to respond to the growing need for structural cost reduction and changes in their customers’ buying criteria.

One of the most powerful ways to achieve this performance improvement is by leveraging the power of digital through the delivery of actionable data-driven insights and collaboration with the right tech providers.