Oil & Gas Industry Suppliers Performance Questioned in Drilling / Wellsite Equipment & Materials Survey
Record activity levels, scarcity in personnel & resources and rising costs have all taken their toll on customer satisfaction levels with some oilfield suppliers taking a hammering whilst others excel. EnergyPoint’s Drilling / Wellsite Equipment & Materials Survey of oil & gas industry purchase decision-makers show major oilfield supplier companies among both the best and worst performers, with some of the biggest players showing the steepest decline in customer satisfaction.
In the words of one large drilling contractor, “Major equipment suppliers have been very weak performers for us. Quality issues are a major concern, along with failures to meet promised deliveries.”
Doug Sheridan, EnergyPoint Research’s Managing Director, commenting on the results of data rating individual suppliers’ performance said, “In the oil and gas industry, the success of initiatives ranging from exploration to the development, management or optimisation of existing assets has never been more dependent on the quality and capabilities of one's supplier partners. Add to this the never-ending push to increase productivity while driving out costs and it's easy to understand why supplier relationships are so important.”
Getting it right
However, certain oilfield service providers manage to garner outstanding marks, in part by maintaining a long-term focus on customer relationships. An example is Houston-based Derrick Equipment which has risen from 14th place in the 2005 survey to top the latest customer satisfaction list.
“High levels of customer satisfaction do not materialize out of thin air,” said Sheridan. “They require a full-time commitment and a willingness to invest in the resources and processes that ensure customers consistently have positive experiences. The ability of the top-rated suppliers to register these high scores in our surveys, particularly as bottlenecks and performance issues have recently hampered the entire industry, says a lot about their determination to meet the needs of customers regardless of industry conditions.”
The EnergyPoint Research reports are available from energy business analysts Douglas-Westwood who’s Managing Director, Andrew Reid, said, “Now more than ever, there's a need for standardised, objective and independent ratings and market-based information regarding the oil and gas industry's satisfaction with the suppliers upon which it depends so heavily. Knowing what is important to customers is key to suppliers optimizing long-term decision-making and resource allocation.”
Critical information
“The EnergyPoint surveys are essential to those players interested in taking proactive steps to manage and enhance customer satisfaction within their organizations. The surveys will also be valuable to oil & gas company purchase managers and major investors in the oilfield services industry who wish to compare the various players’ performance,” said Sheridan.
“The growing interest in supplier performance has manifested itself in increased participation in the EnergyPoint surveys. The 2007 Drilling / Wellsite Equipment & Materials Survey reflects evaluations from 632 respondents in 176 exploration & production companies, drilling contractors and consultancies worldwide.”
Also available is the 2006 Drilling & Wellsite Contractors Customer Satisfaction Survey.
