oilfield services

Supply chain companies have seen their profits squeezed since the E&P cost cuts of the previous downturn, and just as the industry could finally hope for better days, the COVID-19 pandemic caused the value of 2020’s awarded contracts to slump to a 16-year low of $446 billion.

The $120 million per year, 5-year contracts will provide well-intervention services to Equinor’s fixed platforms.

The increase in OFS and equipment sector jobs over the past 2 months came amid higher oil and gas production. But increases in COVID-19 cases are causing uncertainty about when and how much demand will rise.

Although OFS employment is at its lowest point since March 2017, job losses slowed in August as companies start to recover.

Among the top 50 oilfield service firms, downsizing is estimated to land at a headcount of 610,000, down from the 760,000 maintained after the 2016 downturn.

Around $90 billion, or 40% of the revenue from the top 50 players in the global service market, could potentially be replaced by energy transition projects, such as clean energy infrastructure and renewable energy production development services.

The investment group Wilks Brothers, now owners of Carbo Ceramics, has sought stakes in other OFS companies this year.

US oil and gas job losses due to pandemic-related demand destruction amount to 84,000—that’s 105,000 jobs year to date.

Two intelligence groups share similar views on how the fallout from the COVID-19 pandemic has impacted OFS companies’ valuations and operations.

More than 200 companies could become insolvent in the UK and Norway. This number may be larger when including the rest of Europe.