Having a quite-fleet might not be enough to survive in the ever-volatile pressure pumping sector. As the fracking companies push for more economically viable frac spreads, the competition is getting fierce. so seeing mergers in the pressure pumping industry is expected, as more companies try to focus on new technology and make their companies viable in the “New oilfield” sector.
That brings us to the Two Houston oilfield services companies that said would merge in an all-stock deal valued at about $2 billion.
“The merger of equals unites two great companies, resulting in a broader portfolio of well completion services across an even greater footprint in the U.S., benefiting our combined employees, shareholders, customers, suppliers, and the communities in which we operate,” Keane CEO Robert Drummond said in the statement.
It’s important to note this volatility is also one of the reasons millennials don’t like to work in the oilfield.
Crude oil prices could plunge lower
Saudi Arabia has restored half of the crude product that was lost to devastating attacks on its oil industry, and the kingdom said output will be fully restored by the end of this month.
If we don’t see any new drone attackS on Saudi oil infrastructure we could see Crude oil prices going even lower. Before the oil attacks against Saudi oil infrastructure, the Crude oil prices were already heading lower.
$1.5 trillion IPO up in smoke?
New security fears jeopardize Saudi Aramco’s public stock offering following the attack.
last week Saudi Aramco CEO Amin Nasser told media, the company would list on the Riyadh stock exchange “very soon” as bankers from JP Morgan, Goldman Sachs, Credit Suisse, and Citigroup met in Dubai to kickstart the offering.
The oil giant has delayed its IPO, originally scheduled for 2018, reportedly over Saudi concerns about public scrutiny over its finances and because of the complexity of its corporate structure. Prince Mohammed has touted a valuation of as high as $2 trillion, while a number of bankers recommend a figure closer to $1.5 trillion. The oil price will be key to this.
Saudi Arabia oil facility attack launched from Iranian soil, US officials say. – No Proof has been brought forward yet on Iran’s involvement.
“I want to reiterate that the United States wholeheartedly condemns Iran’s attack on the Kingdom of Saudi Arabia and we call on other nations to do the same,” Perry told reporters. “This behavior is unacceptable. It is unacceptable and they must be held responsible.”