Oil Downturn Fuels Growth of Auction Industry

Oil Downturn Fuels Growth of Auction Industry

ODESSA, TX (KWES) - The oil downturn has forced companies throughout the Basin to cut jobs and sell equipment.

Machinery Auctioneers, an Odessa auction business on South County Road 1310, took in a record haul of trucks and oil field supplies on Monday, a sign of tough times in the oil patch.

"We took in almost 300 lots today," said owner Terry Dickerson. "We usually do 200 to 220... maybe 250."

Machinery Auctioneers helps struggling businesses mitigate financial loss by liquidating and auctioning off their assets, he explained.

"We find it very interesting how the depression of the oil field industry is creating such a business boom for the auctioneering industry," said Dickerson.

Despite the steady increase in his own business opportunities, he said he "hates seeing small, mom-and-pop companies struggling" as crude prices fail to recover.

"We're one of those small, family-run companies too... and there's a lot of mom-and-pop, father-and-son teams that are getting affected by [the latest oil downturn]," Dickerson told NewsWest 9. 

Oil field companies provide them with a steady stream of vehicles and machinery to sell, he said, while buyers are often from industries unrelated to oil and gas.

"Many people wonder what happens to the equipment we get," said Dickerson. "We've sold 23 trucks over the past few months to a peanut farmer in Georgia."

His advice to struggling business owners? Sell equipment with pricey insurance payments, as well as any unused or broken machinery.

"Don't keep excess equipment," said Dickerson. "Get lean and mean, and let's ride this together."