Auctions becoming commonplace as oilfield supplies dwindle

Auctioneers expected to sell about 400 pieces of equipment
Published: Sep. 13, 2022 at 7:34 PM CDT
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MIDLAND COUNTY (KOSA) - UPDATE: CBS7 was informed by a spokesperson for machinery auctioneers that Tuesday’s auction sold 30 million dollars worth of oilfield equipment, the most in company history.

On Tuesday, over 71,000 catalog views, and 498 lots were sold over a single day auction totaling over $30M.

Terry Dickerson, CEO of Machinery Auctioneers spoke highly of their partners, Superior Energy Auctioneers, stating “We partnered with Superior because they’re the leaders in the oilfield industry, and we know trucks like nobody else. We’ve had several customers say this was the most impressive spread of trucks and equipment they’ve seen anywhere this year. We think we delivered that yesterday,”

Read the original story below:

The oil and gas industry has seen record profits as the economy recovers from the pandemic.

But all that money doesn’t mean much if you can’t buy new equipment.

That’s what draws companies to used-equipment auctions, especially the one hosted by Machinery Auctioneers and Superior Energy Auctioneers on Tuesday.

“To get this much equipment and to get this quality of equipment at one particular sale is very rare,” said SEA Partner and Chief Auctioneer Jim Richie.

In all, the two auction companies combined to put up 400 pieces of used oilfield machinery for auction.

The massive haul brought in buyers from as far away as Dubai, Abu Dhabi, and Guatemala.

“We have about twenty different countries and probably all fifty states,” said Terry Dickerson, owner of Machinery Auctioneers.

With supply chain issues plaguing O&G, getting new equipment requires an extensive waiting period. It’s much easier to purchase used equipment at an auction.

“It’s just difficult to find oilfield equipment,” Rich said. “Period.”

That means some equipment fetching a fantastic value on the dollar.

“You know, you’ve got used trucks that were bringing in close to what they were when they were new,” Richie said.

It’s a significant change from 2020, when equipment was selling for 10 cents on the dollar.

That’s why Dickerson says his phone is constantly ringing.

“I had a guy from Georgia tell me yesterday that this is the biggest, baddest spread of trucks and equipment we’ve seen this year,” Dickerson said.

But this is a short-term solution. Eventually, the supply chain will have to catch up, or the industry will suffer.

“If you want to buy a truck, you pretty much have to come to an auction to get one,” Richie said.