PESA Member Companies C&J Energy Services, Galtway Industries, Gardner Denver and Scientific Drilling International presented at Simmons & Company’s Sixth Annual Private Energy Conference December 2 and 3, which included more than 50 attending energy companies. As expected, a cautious mood permeated the conference as near-term visibility remains opaque while industry pricing pressures and weak utilization persist. The conference featured five panels: Land Drilling and Well Service; Capital Equipment; Completion Services; a town hall gathering with CJES management; and Perspectives from E&P Supply Chain Management.
The conference was replete with transparency and candor as the challenges afflicting the industry received significant discussion while uncertainty surrounding near-term activity levels was apparent. While a number of different subsector anecdotes were forthcoming, the following note summarizes the prominent themes:
- Oil Service Industry’s Service Deliverability Being Impaired
- Pricing Pressures Persist – At Unsustainable Levels and Still Declining
- Near-Term Visibility Cloud: Q4 Likely Better Relative to Early Expectations, But Q1 Moving Lower
- New Market Entrants Emerging
- E&P Supply Chain Management Still Seeking Well Cost Reductions: Efficiencies and Price
Read the entire conference recap.
