The industrial sector is diverse, containing companies that manufacture machinery used to create capital goods, electrical equipment, aerospace and defense, engineering and construction projects. It responds to seasonal changes, socioeconomic and political changes, as well as business trends. Understanding the various industries in the sector is crucial when selling used industrial equipment. That’s why Aucto constantly attends and displays at industry-specific events.
Last week, from June 13th to 15th, Aucto exhibited at the Global Petroleum Show (GPS) in Alberta. The GPS is one of the largest oil, gas and energy conferences in North America; it provides direct access to the entire supply chain, innovative technologies, products & services and a massive number of educational seminars within the energy sector.
Chris, an Aucto account manager, displaying at the GPS in Alberta.
While he was there, Chris gained some unique insight into what used equipment buyers and sellers in the oil and gas sector(s) may expect to see in the upcoming months.
Canada’s oil and gas industry is optimistic
While Alberta’s petroleum sector suffered from low crude oil prices and a weak natural gas market, the province’s oil and gas industry is poised to rebound once commodity prices improve to sustainable levels.
Also, new, environmentally friendly extracting technology has setup Alberta’s non–oil sands oil and natural gas industry for future growth.
These sentiments are echoed in Alberta Oil & Gas’ most recent Quarterly Update.
What could this mean for used oil and gas equipment sellers?
With the Canadian oil and gas market poised to rebound, used oil and gas equipment will be in demand – especially if companies take on short term projects with high demands.
Newer oil and gas technology and equipment entering the market could prompt companies to retrofit and upgrade their facilities. If this happens, they will likely look to recover capital by listing their existing oil and gas equipment for sale.
The U.S.’ oil and gas industry is still in survival mode
The survival mentality in the oil and gas industry seems to have resulted in a mindset shift toward shorter-cycle projects.
Deliotte, in their 2017 Oil and Gas Outlook, share the same insight.
What could this mean for used oil and gas equipment?
Short term projects suggest companies will look to recover capital, likely on equipment, after demands cease. This may lead to an increase in used oil and gas equipment for sale.