How will service companies like Halliburton, Weatherford, and NOV survive this? Especially NOV. They were already in trouble before this slump.
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I'll tell you how you survive. Diversify! Go into new markets. Right now, storage is a big thing. How does HAL capitalize on this? This is what the leaders need to be doing. Thinking how they can make the best out of a bad situation. Don't just sit there with a doomed attitude. Get out of your comfort zone! Don't be like Blockbuster who didn't adapt and got left behind. There is enough info out there right now to plot a path for the future based on what we know. Change the strategy. I thought we had strategic thinkers?
A lot service companies may well indeed be done before this is all over. Even before all this price crash due to COVID-19 and the Saudi-Russia tussle, I was looking for business analyst opinions on the oilfield services industry. One in particular was very telling..."the story of oilfield services for the last 20 years has been capital destruction". That's not good folks. However, what's worse, is the oil companies are at some point going to need a drilling rig, pipe, cement, a frac job, a logging job, some type of artificial lift, etc., and when they make the call, there will be no one to answer on the other end of the line. That's when the oil companies will be done.
This will be good long term for service companies. Too many do nothings in the ranks.
I'm sitting here totally stunned. 40 years around this business and I've never seen this. 1986 comes close.....
No I'm not well off or over extended financially but I'll take some blame not putting back enough to money and a few divorces.
I don't know how service companies will pay the electricity bill.....Wow, just Wow
I have managers that got their Business degrees from University of Phoenix that don't know sh!t about anything in manaufacturing. Hired in through the Good Ole Boyz system. I am sure that doesn't happen at the corporate level.
The same way they survive every downturn/oversupply.... ffs people this is hot the first time we have had an oil crisis.
All the large companies, will keep a core of personal . But the employee losses will be staggering