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High oil prices and high demand for energy services do not make life easy for service companies-they make it challenging in new ways. Adaptability and flexibility in the pursuit of efficiency will be the keys to service company success in the environment we expect in 2008. Working near capacity and producing margins that were out of reach a few years ago is sweet-but it’s not enough to win new customers, attract investors or gain market share.
Moving with work. Service companies go where the work is found. High prices do not mean work is anywhere and everywhere. Growth in exploration and development is taking place where operators have access to reservoirs.
Access is the force behind the shift toward the Eastern Hemisphere and Latin America. There is still a robust market in the US, but demand for services is higher in places like the Middle East, Russia and Mexico because customers have greater access to new properties for exploration.
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