Doug Sheridan

Energy Equipment Suppliers' Performance Is Subpar

been there, thanks for your comment.

Our view is exactly as you say: once rig counts and activity begin to fall, prices fall as suppliers seek to maintain their market shares. Unfortunately, people are many times treated as only variable costs by suppliers, and too many are let go at the first sign of the downturn -- sometimes never to return to that employer or even the industry. More focus on the long term (i.e., managing "through" the cycles rather simply managing "by" the cycles) would certainly help improve the level or service and quality that oilfield suppliers are able to provide the industry.