Oilfield Service Sector Sees Recovery Emerging

Source: Halliburton.
A hydraulic fracturing site in the US Permian Basin.

Following 3 harsh years of budget cuts and layoffs, oilfield services (OFS) companies are beginning to see a recovery take shape. The worst may also be over for heavy-asset suppliers and original equipment manufacturers in the offshore and subsea sector, but most industry analysts believe their recovery will be significantly slower.

The latest financial reports from big-three service companies Schlumberger; Halliburton; and Baker Hughes, a GE company; show an encouraging picture, with orders picking up and results from continuing operations improving.

Amid a growing global economy, demand for oil is increasing while market-balancing supply restrictions led by the Organization of Oil Exporting Countries (OPEC) are supporting the price of oil, which is at its highest level in 4 years. Oil industry capital investment is rebounding, and the shale-driven expansion in North America onshore operations keeps chugging along.

This article is reserved for SPE members and JPT subscribers.
If you would like to continue reading,
please Sign In, JOIN SPE or Subscribe to JPT

Oilfield Service Sector Sees Recovery Emerging

Joel Parshall, JPT Features Editor

01 March 2018

Volume: 70 | Issue: 3


Don't miss out on the latest technology delivered to your email weekly.  Sign up for the JPT newsletter.  If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.