Oilfield services and equipment (OFSE) companies are having a worse downturn than expected, and they are looking to cut costs and create new alliances, according to an article in the latest issue of bcg.perspectives from The Boston Consulting group.

“Amid the industry’s challenges, however, there are reasons for encouragement. These include the improvements in efficiency that the industry has already achieved and continues to pursue,” the article says. “In parallel, there has been a new emergence and acceleration of alliance activity, including JVs and M&A, among OFSE companies as they rethink their business models and try to improve the attractiveness of their offerings in response to this environment.”

For insights into the valuation of oil and gas firms (including oilfield services firms), see What It’s Worth: Valuing Oil, Gas, and Alternative Energy Assets.