Oil Field Service Companies Turn To Online Auctions For Recapitalization As Rig Count Drops

OKLAHOMA CITY - Feb. 25, 2015 - PRLog -- When a downturn in oil drilling occurs, the effect rapidly darts down the totem pole. While gas prices slump at the pump and oil producers halt drilling activity, due to an oversupply, oil field service companies receive the first blow. The wide range of tasks involved in drilling and servicing an oil well can be ceaseless. The soaring oil prices of last summer, due to low supply, lead to across the board growth for service companies during the boom in drilling. When oil pricing is the opposite and dips so low, that major oil and gas corporations completely halt drilling in regions, service companies are forced to lay off workers, negotiate lower fees, and when worst comes to worst, sell equipment to recapitalize.

With ecommerce trending as the market for big ticket items, many oil field service companies are flocking to the internet to auction or list their equipment, in what has now transformed into a buyer’s market for anyone looking to invest into oil and gas assets.

Productionbrokers.com, an Oklahoma City based ecommerce auction site, specializing in oil field equipment is one of these services being utilized. “We are seeing a lot of companies beginning to hedge on surplus inventory, tooling, vehicle fleets, and essential items that are the base of their business, just to keep their head above the water, during the backslide of the oil market…”, stated Tom Field from Productionbrokers.com. When asked what makes this site bigger, better, or more unique from other auction sites, Field stated, “What differentiates us from any competitor out there, are our marketing and advertising services we offer, that can be specifically catered to benefit any type of oil and gas related business to generate leads and develop new business. We are looking at the big picture and ultimately we want these companies to succeed, because it will benefit all of us involved in the oil and gas industry.”

With oil prices still slipping and supply surging, the online market may be the current money maker for many oil field service companies, who are in a state of limbo, waiting for oil producers to unstack rigs and resume drilling.