Director Tom McNulty explains the state of the industry in a live interview with CNBC
The oil market continues to face challenges, with oilfield service providers typically suffering first when commodity prices decline. Recently, Schlumberger, the world’s largest oilfield service company, posted its first quarterly loss in 12 years. This comes in light of a deal that allowed a strategic takeover of Cameron International, an equipment maker, which some saw as a defensive move in an industry where merger and acquisition (M&A) activity is on the uptick.
“The silver lining is the velocity, how fast all of these companies have moved to cut costs and build efficiencies,” McNulty said during an interview with CNBC. “It’s measured in weeks and months, and in previous cycles, it would have taken much longer.”
“It’s important because these cost efficiencies will then flow into the upstream part of the energy complex,” he explains, “allowing producers that survive and have good balance sheets to make money at lower commodity prices.”
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