Traditionally, distributor profitability was directly tied to economies of scale – the bigger you are, the better you buy and the more revenue you bring in.
What has made the current oil status quo so dangerous is that Saudi Arabia, Russia, Iran and Venezuela have built their economic budgets on $100-per-barrel oil pricing.
As the pundits, analysts, financial experts and self-styled business meteorologists gaze into their 2015 economic crystal balls, all seem to realize the 50% drop in oil prices has opened the door to dire consequences, whose fate has yet to be determined.
The agreement provides for the supply of maintenance, repair and operations materials, line pipe, OCTG and MRO/project services in the Eagle Ford and Bakken shales, the Rocky Mountain region and the Gulf of Mexico.