Technology, environment drive service/ supply's future during weak 2002 ///
As we enter 2002, the service and supply sector is at a crossroads. All indicators point to a depressed operating climate next year, with weakened prices, reduced drilling, and supplies of oil and gas outstripping demand. Accordingly, as with all down cycles, hard decisions appear to be on the horizon.
Today, service companies must sometimes make the tough adjustments necessary to cope in a down market. But they must not lose sight of the subsequent upturn and continue to invest in technologies necessary to capitalize on future opportunities. In its 2002 Drilling and Production Outlook released in September, Spears and Associates forecasts declines ranging from 21% to 40% within the service / supply market. The biggest drops are expected to hit such areas as tubulars, cement, logging and rig equipment, among others.
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