Cost reductions seen throughout the industry could end up being cyclical. An increase in drilling activity will likely grant greater leverage to OFS companies, who may ultimately pass on higher expenses to oil companies.
The current relationship between upstream producers and oilfield service companies is not only contributing to cost overruns and project delays, it's also stifling innovation and decreasing the overall efficiency of the oil industry.
KPMG: Even as national and international oil companies continue to call the shots, oilfield service companies have emerged as the "unsung workhorse" of the oil industry.
Against the backdrop of high debt, capex cuts, and more E&P bankruptcies, 2016 will be a slog for oilfield services, just like everyone else in the oil and gas industry.
Although the oilfield service giants will undoubtedly survive, there’s a lot of uncertainty going forward, prompting them to focus on cost per barrel optimization and improving efficiency
The U.S. oil industry is clamoring around a technology breakthrough that promises to extract more oil while slashing costs. But is "refracking" worth all the hype?