Iran War Triples Logistics Costs for Oil Services Firms

AI Summary

The Iran war has sharply raised logistics costs for oilfield services companies operating in the Middle East, with fuel costs doubling and labor expenses climbing by up to 40%. Conflict-related infrastructure damage, evacuations, and disruptions to equipment movement through the Strait of Hormuz are delaying projects and increasing financial pressure, according to executives at the ADIPEC conference in Abu Dhabi.

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…