What do you guys think will realistically happen to the large O&G service companies ( Halliburton, Schlumberger, NOV, etc.) in the next year or two? Do you think any of them will go bankrupt or be acquired by someone else or just trim way down and actually try to survive this? I apologize for my ignorance, I am just a forklift operator but I really like my job here and all of my co-workers and don’t want to see anyone else lose their jobs. God bless everyone and stay safe.
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I have worked for large corporations. They usually weather the storm by laying off hourly employees. And keep the expensive managers
One or two service providers will go bankrupt but things will not improve. The customers want cheaper prices and the service providers will give it to them by automating jobs out of existence. The glory days are over and they're not coming back. I've been shorting the stocks of every company in the energy sector for years and I've been making a k–ling. I pity the foolish employees who bought Halliburton stock at a 20% discount thru their Fidelity accounts thought they were going to sit on it all the say to retirement. As Jim Cramer has been saying for 2-3 years, "there's nothing that's investable in the energy sector and I don't see that changing."
Go out and vote. JB will slowly shutdown O&G, while DT will get most of the companies and jobs out of the US. Be grateful that you get to pick the poison!
hal, bhi, wft, slb et, al, will be service segments of the ioc/noc's. no margins for serv cos. alternatives.
Is NOV still around?
SLB has already left. HAL and Baker are on their way to Dubai or Saudi. Learn Arabic.
Who cares. Hopefully Miller drowns in his snake oil preparing for earnings report tomorrow.
I think Schlumberger and Halliburton will be ok. I don’t think NOV will survive this.
Mom and Pop companies will and already are dominating Cementing. That is who just hired me in Texas while Baker is moving in where Halliburton sold out in March.
Bankruptcy these days means you just don't pay your bills and screw the stock holders. So no one will magically disappear.
Big four can’t survive in US unless rig count goes back to 800+ and price is $80+. Overhead in big companies can’t be reduced. Big four will be international only where foreign countries accept kick back payments. Halliburton is planning on this by shutting down US operations and manufacturing. Turn off Dr Phil and open your eyes. Plus if sleepy joe wins all hydrocarbons in US will be shutdown.
It was always a market dominated by big four. Then smaller players started eating into the revenues of big 4 in several domains. If you are big, innovation is slow but being big gives the reliability assurance to Operators of deliverables on complex and big projects.
If the downturn had not happened, which is kind of 6 years running now, many of the small players would have flourished.
But the downturn is a deathknell on these companies and the clock is ticking.
Many of these companies will either die, or get investor hands changed or absorbed by big companies at a discount.
In the end the big companies will survive, there is no doubt about it.
The new tech is a force that will change the face of the service industry.
I do t know how NOV will fare.
"Once 1 or 2 major service companies like Weatherford and Baker disappear, things will improve."
Or Halliburton, since there is NOTHING, other than a very small market, such as deep water, or HPHT wells, that the smaller, regional, second or third tier service companies cannot provide at a lower cost, and with better service quality, if, indeed they would even wish to enter these highly specialized market segments.
Schlumberger is far more likely to survive, given their innovation and lead in logging technology.
The big three will survive and create an oligopoly. Any high tech Work will command a substantial premium. The commodity products will be delivered at economies of scale by the big three, but still a Long way to go.
Service providers will segment into mechanical and technical. Doing both is insane when funding is near impossible to get these days.
Once 1 or 2 major service companies like Weatherford and Baker disappear, things will improve.