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.

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Oilfield Service Sector Sees Recovery Emerging

Joel Parshall, JPT Features Editor

01 March 2018

Volume: 70 | Issue: 3

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