Oil price plunge set to hit US genset sales

The oil-price collapse is prompting the oil and gas energy and exploration sector to wind down expenditure in the continental US.

According to Industrial Motor Power Corporation, a new and used power generation supply company, it has already witnessed downward trends in oil and gas production in the US, a prophetic move guaranteed as a precursor to future cuts if prices don’t recover, the company says. Individual rigs have recently been cancelling orders in the triple figures, and this trend is likely to herald additional cost cuts yet to come, IMP believes.

Gregg Bare, of Mustang CAT based in Texas, observes: ‘Oil & gas is cutting back on everything. We’re getting a lot of cancellations, and delayed deliveries [on power generation equipment]. It’s a struggle for everyone, but the oil field is like that; it’s cyclical.  A lot of smaller businesses might disappear, but everything will bounce back.  It’s just a matter of time.’

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...