Since January, almost half of oilfield service company owners have seen work volumes decrease by more than 25 percent, and nearly 60 percent are bracing for further reductions, according to a new report.

We surveyed of owners and C-level executives of privately-held U.S. companies in August. The results show that over 75 percent of respondents have reduced rates by 10 percent or more, and nearly 60 percent anticipate further rate reductions as the industry attempts to counter falling oil prices.

The early summer WTI head-fake above $60 provided some temporary optimism to many people in the business. We wanted to see if the current down-leg into the 40s was putting additional pressure on service providers, and if so, how much and what was being done to weather the storm.

When a similar survey was conducted in February, there was still a group of service companies (nearly 8 percent) that had not felt the effects of the downturn. As of August, all respondents had seen pricing decreases, and nearly 60 percent expected more to come. A similar trend was seen in work volume.

The written comments by respondents reveal frustration and fatigue:

• "I am proactively guiding my ship to as soft a landing as possible. This feels like the summer of 1986." — respondent from the Eagle Ford area
• "I think our government needs to pay more attention to the U.S. oil and gas industry and to do everything in their power to maintain a more stable market." — Marcellus Basin respondent
• "Prior to crash, oil companies added many requirements that added cost. No margins left for our service company. Really wondering, do oil companies intend to kill service company support system?" — respondent from Oklahoma
• "There is no more to give!" — Niobrara completions company
• "Until this dreadful Iran deal was negotiated, I was expecting $75-$80 at year end!" — respondent from the Eagle Ford area

One question asked was, "In your opinion, where do you anticipate the price of WTI to be on Dec. 31, 2015?" Over 80 percent of respondents believe the price will be less than $55 per barrel, a somber contrast to responses in Q1 when the majority anticipated prices over $56 per barrel. Oil was trading at $45 at the close of the survey period.

As with the first survey, approximately 70 percent of the respondents have been in business for more than 10 years. Most of these folks have been here before and have the knowledge and determination to ride this out.

However, any optimism that oil will make any meaningful recovery by year-end seems to be fading quickly for those in the trenches.

In addition to questions about company demographics such as basin focus, revenue and workforce size, the survey also assessed company-driven cost reduction strategies and the end result of price reduction negotiations.

This mid-year survey was a followup to our Q1 survey, which shared the price reductions owners were being asked for and how deep costs were being cut. This time around clients and colleagues wondered where and when would we find the bottom, and what could company owners do to weather the storm. Oilfield service company owners are resilient. They have the knowledge and determination to ride this out.