The oil services sector provides rigs, equipment, people, services and technology to exploration and production (E&P) companies. As the sustained oil price drives increased exploration and development budgets, the demand for rigs and specialist services is booming.
The sector is seeing price inflation and a shortage of capacity:
- The average age of the western oil industry worker is over 50, and the sector is facing a shortage of people and skills.
- A lack of investment in equipment over the past 20 years has led to very high rates for renting rigs and long lead times.
- The manufacturing capacity for rigs and drilling equipment is limited.
Oil basins in OECD countries are maturing and declining. Meanwhile, state-owned oil companies in the countries with major reserves are increasingly bypassing the oil multinationals and contracting directly with independent oil services providers.
We support oil services businesses that can adapt to this changing landscape and succeed by:
- Building the scale and logistical support needed to provide international services both offshore and onshore.
- Applying new technology that will help to maximize hydrocarbon recovery, as the industry focuses on oilfields that offer increasing technical challenges.