After several years in the doldrums, oilfield service companies are beginning to raise prices for their products and services, according to Rystad Energy. “Oil and gas investments are on the rise, and so too is the pricing power of service companies. After losing pricing power in 2015 and 2016, oilfield service companies have since regained some of the lost ground, thanks first and foremost to industry consolidation among players that has concentrated the market over the past couple of years,” says Audun Martinsen, head of oilfield service research at Rystad Energy. “Pricing power is likely to be further strengthened within the service industry, as orders are anticipated to rise across the supply chain, coupled with capacity adjustments intend to avoid oversupply in 2019 and 2020,” Martinsen added. (Click to enlarge) A recent Rystad Energy deep-dive on market concentration within the oil and gas industry can be used to understand […]