Competition in Industry: Driving Innovation, Efficiency, and Lower Costs

Competition in the oil and gas industry isn’t just helpful—it’s essential. Whether you’re negotiating with vendors or striving to run a more efficient operation, competition fuels innovation, drives down costs, and ultimately makes everyone better at what they do. Here’s why it matters and how you can use it to your advantage.

1. Competition Keeps Prices in Check

One of the most immediate benefits of competition is price control. Without it, costs can bloat, making operations more expensive and squeezing profitability. High prices also invite new players into the market, chasing higher margins. By fostering a competitive environment, you help ensure prices remain fair and reasonable—freeing up resources to reinvest in the parts of your operation that matter most.

2. Make Your Vendors Compete

A practical way to benefit from competition is to let your vendors compete for your business. This doesn’t mean pitting them against each other unfairly. Instead, it’s about being precise with your requirements so bids can be compared on equal footing.

When requesting quotes, be clear: specify brand, make, and model. Or, if relevant, define size, material, pressure rating, and flange size. This “apples-to-apples” approach makes it easier to find the best possible deal for the exact product you need.

3. Look Beyond the Lowest Price

Competition isn’t always about who comes in cheapest. Often, the real value lies in the details. Ask yourself:

• Is delivery included?

• Is the vendor flexible with payment terms?

• Will they deliver parts before payment if you’re in a bind?

• Do they support you during weekends or holidays?

The lowest price can sometimes cost more in the long run—whether it’s through premature equipment failure, higher maintenance needs, or expensive modifications. A strong vendor relationship, built on trust and reliability, is usually more valuable than short-term savings.

4. Lower Prices Boost Economic Activity

When competition drives prices down, the benefits ripple outward. Lower costs give operators more financial room to expand, invest in new projects, or upgrade equipment. This reinvestment creates a cycle of economic activity that benefits not only individual companies but also local communities that rely on oil and gas development.

Conclusion: Competition Keeps You Sharp

Perhaps the greatest benefit of competition is the discipline it instills. Without it, complacency creeps in—operations stagnate, and opportunities slip away. But when you know others are pursuing the same contracts or market share, you stay sharper: tracking industry trends, refining processes, and responding quickly to customer needs.

Competition isn’t about crushing rivals—it’s about consistently pushing yourself to be the best. Embrace it, and you’ll not only strengthen your operation but also contribute to a more efficient, innovative, and resilient industry.

If this hit home, here are a few next steps worth your time:

• Book — Crude Communication: Practical tools for running better conversations and vendor relationships in high-stakes environments.

  
  

• Podcast — The Crude Cast: Field-tested stories, tech, and tactics from operators, engineers, and leaders.🎧 Listen to the podcast

  
  

Quick Questions for You

• Where has competition saved you real money—parts, service, or turnaround time?

• What’s your apples-to-apples checklist when comparing vendors?

• Which non-price factors (delivery, weekend support, payment terms) have paid off the most?

Drop your answers in the comments—or send me a note at hello@crudecommunication.com. You can also leave a voicemail on the site’s podcast page: crudecommunication.com/podcast.