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Sourcing Critical Oil Field Services for Shale Plays in a Tightening Supply Market


The current low price environment for natural gas favors economically advantaged shale gas resources, which combined with a need for operators to drill to maintain leases, has led to a rapid recovery in drilling and completions activity in unconventional basins. The resulting boom has led to a rapid tightening of critical services and equipment capable of developing these onshore, unconventional resources. This is especially the case in new regions such as the Marcellus.

Securing supply in the face of a tightening supply market of intermittent availability, interruptions to operations and increasing costs has become the number one challenge for today's unconventional resource focused oil and gas supply chain organizations. Given the continued volatility in commodity prices and fluctuating cost drivers, how will operators maintain the development of unconventional gas projects? The result is a strong focus on achieving low cost lean operations, which requires stable and reliable sources of critical services and materials.

Read this article which discusses several scenarios, including the pursuit of strategic partnerships with service providers, the development of alternative supply sources and creating enhanced roles for E&P supply management organizations.

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