The collaboration employed by services and equipment companies in the oil and gas sector during the oil price downturn is set to continue, according to a new report from BMI Research.
“In response to more diﬃcult market conditions, oil service companies have attempted to reduce costs and improve their eﬃciency through forming alliances, joint ventures, and merging with their peers,” a BMI spokesperson said in a statement sent to Rigzone.
“We believe that oil ﬁeld services and equipment companies will continue expanding their offerings through increasing collaboration in the sector,” the spokesperson added.
In its report, BMI states that the formation of alliances and an increasing number of mergers and joint ventures have been a ‘common’ response to cyclical oil price ﬂuctuations.
“Through increasing collaboration, oil ﬁeld service specialists can improve their position in the market by offering a more complete service package to be better able to attract business in a low demand market,” the report states.
“Growing collaboration also helps oil field specialists secure access to valuable assets as well as encourages the transfer of technological and strategic knowledge,” the report continues.
BMI confirmed that alliances within the services and equipment sector also beneﬁts producers, ‘who gain value from the combined expertise of leading engineering ﬁrms, increasing the value of their assets through enhanced recovery and lower operating costs’.