After years of struggling, oilfield service companies are beginning to raise prices for their products and services, according to a new report from research firm Rystad Energy.
"After losing pricing power in 2015 and 2016, oilfield service companies have since regained some of the lost ground, thanks first and foremost to industry consolidation among players that has concentrated the market over the past couple of years," saying Rystad's chief of oilfield service research.
Although the Big Four service companies - Schlumberger (SLB +4.8%), Halliburton (HAL +4.8%), Baker Hughes (BHGE +4.5%) and TechnipFMC (FTI +2.9%) - have won back market share and begun to raise prices, Rystad warns of remaining uncertainty in the industry.
"Even though the oilfield service market has become more concentrated at the same time as the buyer side has become more fragmented, there are also other factors which impact pricing power," Rystad says. "Some segments, despite being more concentrated, are still heavily challenged by oversupply, forcing companies to adjust their capacity before prices improves."
Now read: Crude Oil - Waiting On OPEC »
Subscribe for full text news in your inbox