Energy and Oilfield Services

Energy and oilfield services companies are consolidating to achieve scale, improve cost structures and access capital amid rising Capital Expenditures (CapEx) and competitive pressure. Entering new markets and adding technology requires navigating new territory throughout the deal lifecycle. Transaction advisory expertise can help companies realize value through the transaction.

Energy and oilfield services companies can harness digital and AI tools for a variety of uses, including monitoring seismic data, optimizing drilling and recovery and predictive maintenance that allows for proactive thinking. Implementing and integrating AI can enhance efficiency and accuracy.

Companies within the energy and oilfield services industry need to safeguard against cybersecurity threats that can impact Industrial Control Systems (ICS), Supervisory Control and Data Acquisition (SCADA) and Distributed Control Systems (DCS). Shutdowns slow production and create safety threats. A cybersecurity assessment can safeguard digital systems and ensure regulatory alignment.

Oilfield services companies are under pressure to reduce emissions, implement Carbon Capture, Utilization and Storage (CCUS) and meet strict environmental and governance standards. Additionally, decommissioning liabilities are growing. Risk management is necessary to address regulatory changes and potential threats before they escalate.

Oilfield services businesses face tighter margins due to low oil prices, rig count reductions and geopolitical uncertainties. U.S. crude often drops below profitable thresholds, limiting new drilling and capital spending. Operating in a highly capital-intensive, project-driven and volatile industry makes cost accounting and financial management crucial.