Low oil prices seem to be pushing some of the big guys to decide they are going to team up, as the perception is that there are some value acquisitions out there to be had in light of low prices. The assumption of course is that prices will rise again and value will return to this space, this giving all of us suppliers cause to stop holding our breath.
The best and most recent example of this is Schlumberger’s acquisition of Cameron.
See: http://fortune.com/2015/09/08/big-oil-schlumberger/
As with all acquisitions, I’m sure Schlumberger will identify some redundancies in the combined workforce and there will be layoffs. The hope is that once the two giant firms are integrated, there will be new projects to engage on and new opportunities for steel castings and iron castings sales. This is a purely selfish concern of course.
For everyone’s sake, let’s hope this oil market stabilizes sooner rather than later.
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