Oil Services Industry Entering New Boom Time Thanks To Tight Market

Oil Services Industry Entering New Boom Time Thanks To Tight Market

Industrial Fracking Oil Well pumping natural resourcesFracking Oil Well is conducting a fracking ... [+] procedure to release trapped crude oil and natural gas to be refined and used as energy Soaring oil and gas prices have dramatically altered the power dynamic between oil companies and the contractors that provide drilling services for the industry. The oil services sector was hardest hit by the pandemic-induced crash of 2020, which forced many firms – including powerhouse Weatherford – into bankruptcy. But the steady rebound in oil prices, turbo-charged by Russia's late February invasion of Ukraine, has prompted a massive reversal of fortunes. With oil prices trading over $100 a barrel and markets facing a supply crunch, the oil services sector is looking at a robust, multi-year upcycle as demand surges for the equipment needed to drill and frack new wells. For the first time in almost a decade, service providers have the power to raise prices on their oil company customers, and it looks like this power dynamic could be in place for some time. During the downturn, the service industry performed extensive rationalization – laying off crews, downsizing operations, and scrapping underutilized equipment – to reduce costs. That means there