Video: When Size Matters in the Oil & Gas Industry
Think of larger oilfield operators as aircraft carriers and smaller ones as speedboats
Does operator size matter in the upstream space? If so, why?
Scott Cockerham: Operator size does matter and it goes back to flexibility for those groups. Essentially you can look at much larger companies being aircraft carriers - they don't turn very quickly but they have a huge war chest of capital they can deploy to acquire production and acreage. And the smaller companies are speedboats - they are always on the precipice of a drilling program of having to make some sort of transaction in order to fund the next drilling program.
So for those larger companies, they can be a little more adventurous with where they want to go ahead and drill, but they can also be much larger programs. The flip side of that coin is they [drilling programs] are much tougher to turn off. Whereas for smaller companies, they're just far more agile but the bets that they make..they have less margin for error should they not work out.Contact Us