In my previous job, I worked as an offshore engineer for a multinational oil and gas company which is one of the ‘supermajors’. In public opinion, the oil and gas is a cash generating industry and working for that industry can earn decent money, which I do not deny.
When I first started, my manager pointed at a length of pipe which was producing a swoosh sound. He asked ‘What sound is that?’. For me, it is just gas flowing through. He said ‘That’s the sound of money!’. That facility is connected to 2 gas wells producing 2 million m3 of gas per day, equivalent to USD 500,000 per day. That is just producing through a 6 inch pipe, no larger that the length of my foot.
I have also worked with oilfield services, including one French services company. We worked for 24 hours non-stop for kicking off newly drilled wells, I provided permit for them to do well intervention and installation of equipment. I have also worked with rigs and vessels that charge USD 500,000 per day. I have also ordered equipment, the size of a 20-foot container, that was transported using air from Netherlands due to urgency for use. Boy! The oil and gas industry is a lucrative business.
Oilfield services charge a company for thousands on day rates for services and equipment prices are large inflated when they go offshore due to logistics. In this post, the feature company is China Oilfield Services Ltd (COSL), which is a China based offshore oilfield services company.
Disclosure: The author no not own shares in China Oilfield Services (2883.HK). This article is intended to provide educational information to readers and in no way constitutes investment advice. Investing in public securities is speculative and involves risk, including possible loss of principal. The reader of this article must determine whether or not any investments mentioned in this article are suitable for their portfolio, risk tolerance, and accepts responsibility for their decisions. Neither information nor any opinion expressed in this article constitutes a solicitation, an offer or a recommendation to buy, sell, or dispose of any investment or to provide any investment advice or service. An opinion in this article can change at any time without notice. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.