The price of oil may be plummeting, but the news is hardly dismal for everyone. Many consumers are lucky enough to reap the benefits from the laws of supply and demand during economic downturns. One is they have enjoyed lower prices at the gas pump.
The equipment used to prepare the ground, and drilling rigs across America may lay dormant, but oil companies’ misfortunes can now put a company in the driver’s seat to secure the used equipment needed at bargain prices, according to I10 Equipment owner Jared Bishop.
If you are in the business of digging or drilling anytime in the near future, now is the time to save on a growing inventory of used equipment, he added.
“The downturn has helped us secure an even larger, diversified inventory–in fact, a stockpile–of affordable used oilfield equipment,” Bishop said. “And, we, in turn, are passing those savings onto our customers.” He said it is only a matter of time before the prices return to pre-downturn prices, and “by then we will all being paying heftier prices for used oilfield equipment.”
Oil futures tumbled below $45 a barrel as of Wednesday, which is the lowest level in nearly two weeks after the Energy Information Administration (EIA) again lowered its crude-oil price forecasts for this year and next.
Nationally, last week’s count of active US drilling rigs was down 40% from the same week a year ago, according to industry expert Baker Hughes.
“Rebalancing of supply relative to demand will progress over the rest of the year,” said Rob Haworth, senior investment strategist at US Bank Wealth Management. “For now, we believe prices (will) remain low for some time.”
Established as a division of Bishop Enterprises in 2011, I10 Equipment buys, sells and trades used industrial equipment, oilfield, construction, and farm equipment, plus trucks and trailers worldwide. It operates 24/7 and offers competitive financing through its own financial company.