The long-term affects of the prolonged trough in oil prices are yet to be established. But there are certain trends that have emerged as a response to the changed financial climate that look set to remain with us when prices return to pre-2014 levels.
One of these is a growing interest in a rental business model for key equipment from long-established OEMs. Of course, interest in the rental market is not new: and certain operators have built their business on leasing rather than purchasing equipment. But more and more operators are exploring rental options in preference to outright purchase of, for example, new IWOC systems. At a time when every CapEx dollar is being scrutinised and every investment decision has to clear a much higher bar, the rental model makes a great deal of financial sense.