Iran War Triples Logistics Costs for Oil Services Firms
Oilfield services companies are paying as much as three times their usual logistics costs in the Middle East, with fuel expenses doubling and labor costs climbing by as much as 40%, as the Iran…
Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and gas sector. Her…
Oilfield services companies are paying as much as three times their usual logistics costs in the Middle East, with fuel expenses doubling and labor costs climbing by as much as 40%, as the Iran war continues to disrupt equipment deliveries and project operations.
Executives speaking Tuesday at the ADIPEC energy conference in Abu Dhabi described mounting financial pressure from the nine-month conflict, which has damaged infrastructure, forced employee evacuations, and made moving equipment through the Strait of Hormuz increasingly difficult.
Alessandro Bernini, CEO of Italian engineering company Maire, said logistics costs on some Middle Eastern contracts have tripled, while labor expenses have risen between 30% and 40%.
This story was originally published by OilPrice.com. Read the full story at OilPrice.com →
Conversation