LAS VEGAS–(BUSINESS WIRE)–First Titan Corp. (OTCBB:FTTN) continues its due diligence on the oilfield services and equipment markets, narrowing its focus to the midstream sector. FTTN believes this sector will provide a promising future market for used oilfield equipment as midstream projects, unlike those in upstream, are less likely to fall victim to the current pricing slump.
The midstream oil and gas industry concentrates on gathering, storing and transporting oil, natural gas and other petroleum-based liquids. As a result, it’s often less severely affected by cyclical swings in commodity prices than the more volatile upstream (or exploration and production) sector.
This is because no matter the cost to produce or refine, product still needs to be stored and transported, and while exploration budgets are being slashed in upstream, work continuously needs to be done on existing pipelines, gathering plants and storage tanks.
“From a services and equipment standpoint, the midstream market currently offers more opportunities than upstream,” said FTTN CEO Sydney Jim. “Midstream is seeing a rash of mergers and acquisitions as capital becomes tight. These companies will now be more likely to turn to used equipment, which will be less expensive, and thus more attractive, than new. Our research is showing a definite niche FTTN can fill in terms of buying, selling and leasing service equipment to these bargain-hunting midstream companies.”
Auction houses are reporting record turnouts for oilfield equipment sales, demonstrating a viable market exists. Studies also forecast the market for oilfield equipment will top $127 billion by 2020, indicating future demand will remain strong.
For more information on FTTN’s oil and gas projects, please visit www.firsttitanenergy.com.
About First Titan Corp.
First Titan Corp., through its wholly owned subsidiary, First Titan Energy, LLC, is committed to the exploration and development of oil and natural gas resources around the globe. The Company continually seeks to partner with energy developers that are pursuing innovative new methods of oil and gas extraction, including the development of new technologies, cleaner methods and unconventional resources.
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