Oil & Gas industry costs are soaring. Here’s one way to reduce them.

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Equipment shortages are driving up prices. Using a vendor marketplace can be a helpful way of bringing costs down.

With costs in the Oil and Gas industry soaring, what can companies do to make savings and reduce expenditure?

Shortages of equipment and lengthy delays are driving up prices for those commodities that are available, meaning profit margins are getting squeezed.

Problems with logistics has meant that Oil and Gas companies have found it difficult to source steel, for example, as well as submersible pumps that boost well pressures, and pickups that transport workers and equipment.

The upstream oil and gas industry in particular has been hard hit by soaring fracking sand prices due to labor shortages at sand mines and a lack of truck drivers. 

Meanwhile, it was recently reported that Permian oil producer Diamondback Energy had experienced a 93% rise in fuel costs, a 43% hike in cement costs, as well as rises in steel casing prices (42%), directional drilling costs (35%), and equipment rentals (more than 20%).

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