The oil and gas sector will continue to see downward pressure on prices as a result of increasing inventories throughout 2026, according to a new forecast from The U.S. Energy Information Administration (EIA). As the government noted in the report, “the Brent crude oil price will fall to an average of $62 per barrel (b) in the fourth quarter of 2025 and $52/b in 2026.” Goldman
Sachs made much the same call: As reported by Reuters, Goldman sees Brent/West Texas Intermediate crude (WTI) averaging between $52 and $56 per barrel in 2026.
This shift marks a significant change for an oil and gas sector that was seeing WTI prices of $75 to $85 per barrel for most of 2024 and into early 2025. Generally, the price needs to be at least $70 to cover the cost of drilling new wells.
Against this backdrop, smaller and midsized oil and gas companies in particular should be doing all they can to prepare for what could be a difficult year ahead. As part of a comprehensive strategy, proactively monetizing excess equipment can generate much-needed liquidity even during times of depressed prices. Dispositions also provide relief from the costs associated with
storing and maintaining excess equipment in typically punishing environments like Texas and coastal Louisiana.
Being proactive about asset-disposition also can benefit creditors and restructuring professionals. By acting quickly rather than hesitating to put assets on the market, they can create a longer time horizon for the sale and marketing of these items, bolstering reach in ways that can translate into
a higher recovery.
Repositories of Value
Demand for oilfield and drilling equipment does not simply disappear when the oil price drops. In fact, it can be surprisingly healthy, with some oil-and-gas concerns turning to the secondary market to avoid the high cost of purchasing new (and these days, possibly tariffed) replacement equipment. In addition, much of the equipment used by oil and gas companies—such as rolling
stock, material-handling and metalworking and fabricating assets—is in high demand outside of the sector.
The recent multi-auction disposition of El Dorado Oil & Gas by Tiger and Liquidity Services is a case in point. All told, the sale partners sold more than 4,500 lots of oil and gas assets across the United States and Canada over several months. The total recovery was $13.2 million, with strong buyer interest driving 315,000 page views during 14 online auctions of assets stored in Texas,
Mississippi, Tennessee, North Dakota, Wyoming, Texas and Oklahoma.
If you are interested in monetizing energy-industry M&E—from heavy pipe and high-capacity pumps to drilling equipment and storage tanks—our disposition veterans would be happy to offer advice and share their recent experience with buyers in the global oil and gas sector.