Austerity is on the rise within the oil and gas industry. Presently, cost control measures forced onto the oilfield service sector have begun to show a trend toward a bear market. Oil producers also continue to remain stressed by lower revenues and lower margins. Oilfield service firms performing contract work — drilling wells, providing equipment, providing engineering services, and building critical energy infrastructures — have to face these rising factors with the utmost efficiency.
The Nature Of The Beast
The nature of the beast is capital discipline for oil and gas. Severe demands from investors and producers are driving losses to the oilfield service sector. Producers appear committed to capital discipline, particularly with investors demanding more significant shares of the profits in the form of stock buybacks and dividends. In turn, cost-conscious producers have been particularly austere with oilfield service contractors throughout the supply chain.
Moreover, headwinds for the oilfield services sector have gone beyond oil prices and include bottlenecks that limit oilfield activity, particularly for the US shale boom. Labor shortages and overcapacity of equipment like drilling rigs are hurting oilfield service companies’ ability to gain any pricing power over producers. Additionally, fears of a global recession from ongoing trade issues are causing oilfield service providers to bear most of the burden.
Many oilfield service facilities are uncertain how hard this bearish market will come down on their operations. Low supply in the workforce and a need to downsize certain aspects of the supply chain has created high-demand for expert senior-level management. Exceptionally skilled technical and executive professionals are more than necessary during these uncertain times.
Why Newport Is Positioned To Help You
Now more than ever, experienced senior-level staff is essential to keep moving forward. Many factors within the oil and gas industry — especially within oilfield services — are increasing competition to find top-level talent. Maintaining high-performance during seasons of austerity is critical to the success of oil and gas enterprises.
Smart and efficient top-level team players are vital assets. As bearish factors continue to anticipate operation costs becoming issues for production — qualified professionals are in high demand. The immediate effects of these depressive forces have already become visible in some of the oilfield service’s top companies filing for bankruptcy protection, as reported by Forbes.
You need experts to help you find and attract top-level talent. The lack of human capital — from workforce laborers to management — has created a competitive need to find the best energy industry talent. Recent developments show that to maintain a tight budget and production timelines, you’ll need qualified oilfield professionals with up-to-date technical expertise and business acumen.
We Can Expertly Present Your Opportunities to Candidates
Planning is critical when a bear market is approaching. Additionally, bottlenecks make it challenging to cope with rising production costs and no relief in sight. Let us help you find the expert senior-level candidates to maintain efficiency. Ensure the best technical and executive professionals work at your organization with The Newport Group.
We are trusted by many oil and gas enterprises, of all sizes and revenue, to recruit. Our energy and oilfield services recruiters stay active within the most relevant national oil and gas associations — such as The Association of Energy Service Companies and The American Petroleum Institute — keeping The Newport Group’s finger on the pulse of oil and gas.
Your human capital investments will provide a fast, long-lasting, and positive return. Our breadth of industry expertise includes drilling contractors, well servicing companies, completions and stimulations companies, product suppliers, and more. And we’ve helped hydraulic fracturing, cementing, coiled tubing, and wireline services organizations find their key roles as well. Learn more about how The Newport Group can help build your enterprise here.