As the energy industry continues to suffer from the effects of low oil prices, oil and gas companies are looking to the secondary market to generate needed capital for their now-surplus equipment. This is especially true in the Permian Basin, a significant oil-producing sector in west Texas.
How Permian Basin Companies Are Handling the Challenge of Surplus
A feature story in the Midland Reporter-Telegram, “Sell or hold? Liquidating surplus equipment not easy decision,” discusses the Permian Basin and challenges companies are facing as a result of the depressed energy market. With the uncertainty of the market, oil and gas companies in this region are being cautious. Some are liquidating, while others are waiting to see what will happen in the market. With holding and maintenance costs adding up to as much as 25% per year of the original purchase cost, however, this can be a pricey endeavor.
For these reasons, many companies are enlisting trusted partners, like Liquidity Services, to maximize recovery for their surplus oil and gas assets. A partner helps oil and gas companies make intelligent decisions about their surplus assets and recoup much of their investment by selling to a large global buyer base.
Our Success in the Permian Basin
Liquidity Services has partnered with over 30 of the largest acreage holders in the Permian Basin, a client base consisting of majors; large, medium, and small independents; midstream gathering and processing companies; OEMs and equipment refurbishers and dealers. We’ve helped our clients recover hundreds of millions of dollars on equipment in over 160 asset categories including casing and fleets, drilling rigs, and complete gas plants.
Every company has surplus and must determine whether to hold, sell, or redeploy it elsewhere in their organization. As the energy surplus expert with over $1 billion in energy assets sold, Liquidity Services has the deep knowledge required to help clients accurately value their assets and make intelligent asset management decisions.
For more information on the energy industry and ways to effectively manage your reverse supply chain, contact Liquidity Services.