Brooks Gaul, Director of Pipe Sales for Liquidity Services, provided keen insight and advice on how to handle the economic downturn in the oil country tubular goods and line pipe market during the 6th Annual Energy Insight Seminar, hosted by Network International, a Liquidity Services marketplace. The exclusive Energy Insight event offered investment recovery and materials management professionals firsthand insights into the energy market. Topics included developing trends, market expectations, and more – arming attendees with the industry intelligence needed to boost their companies’ performance. Here are some key takeaways from the event.
While opportunities to sell surplus oil and gas assets may be slim in the United States, dealers must continue to prospect and market to other operators and distributors, domestic and international. Tubing will always have to be replaced and seamless pipe sells and trades well globally. By expanding your research and marketing reach in Asia and the Middle East, with local language support, you can capitalize on these sales opportunities.
Bob Francis and Gardner Dudley from Liquidity Services with Mack Brothers, VP of Industry Services & Consulting at IHS, after the show
Improve Presentation of Surplus
“A picture is worth a thousand words” still rings true when presenting your surplus. Make sure your photos look professionally shot and show your surplus in the best light. You should also work with your sellers to gather mill test and inspector reports that present your assets positively. Finally, a credible, up-to-date assessment from a certified inspector will enhance your presentation.
Consider Alternate Sales Formats
The tubular market provides the potential for alternate sale formats based on potential value. Since pipes and tubing can degrade over time, the full stencil identification on the pipes may be hard to find and therefore trace. Because anything that tracks has value, sellers should investigate composite offers—so much value for traceable and so much for untraceable as well as the possibility of a sale with no minimum, no reserve, but subject to seller confirmation.
Work with a Surplus Asset Management Provider
A surplus asset management partner can help you achieve maximum value for your surplus assets, even in a down market. The right partner will maximize total value across your reverse supply chain while requiring little time and effort from your organization. A reputable partner will have professional, data-driven services to manage, value, and sell all types of surplus energy assets. It will also possess extensive knowledge of the secondary market; a vetted global buyer base; and the ability to ensure transparency, efficiency, and compliant removal of assets. Liquidity Services leverages a wide range of strategies to ensure your surplus assets are sold through the right channels to the right buyers for the highest recovery value.
The bottom line is by following these guidelines, energy companies have opportunity for profit in their surplus assets…even in a down economy.