Oilfield Housing Firm's Stumble May Herald More Oil Industry Pain
Target Logistics, the top temporary housing operator in North Dakota and one of the largest in the world, says it is finishing 2014 with "high utilization" at its facilities. The privately-held company declined to be more specific, but said it did not expect a decline in 2015 occupancy.
Analysts say the company has been able to land long-term contracts with companies like Halliburton Co and EOG Resources Inc, by offering them the size and scale Civeo cannot match. In North Dakota alone, Target Logistics has 10 camps and touts its ability to quickly add housing wherever needed.
To save cash, oil producers have already started to ask drilling and well completion services firms to cut their prices by 10 to 30 percent, said PacWest, an energy consultancy in Houston.
That is hurting the most so-called pressure pumpers, often small privately-held firms, that run fleets of diesel engines used to generate power for hydraulic fracturing jobs.
"We expect cash flow and solvency challenges and more consolidation in the industry," PacWest said earlier this month.
Kirby Corp, which moves crude and other fuels by barge, issued a profit warning in December as its business overhauling diesel engines in onshore fields was hit harder by the oil slide than earlier anticipated.
The largest services companies, Halliburton and Schlumberger , have said they will reduce headcount, while BP Plc announced a $1 billion restructuring.
1234
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- USA Oil and Gas Job Figures Jump
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension