A lack of crude oil pipelines in west Texas of the United States has slowed down the growth in North America Hydraulic Fracturing (Fracking).
Schlumberger, the world’s largest oilfield services provider, warned its fourth-quarter North America revenues would likely decline 15 percent sequentially.
Schlumberger is “guiding consensus lower” through the first quarter of 2019, analysts for investment firm Raymond James wrote in a note following Schorn’s presentation.
The drop in hydraulic fracturing activity this year has been “significantly larger” than expected, Patrick Schorn, executive vice president of wells at Schlumberger, said at a conference in New York, leading to a more significant decline in pricing than the company had forecast originally.
This could also hit other Hydraulic Fracturing (Fracking) companies like Liberty Frac, (frac)Keane, Cj , Halliburton.
Pumping equipment specialist Weir Group PLC (LON:WEIR) fell 3.3% to 1,446p, well equipment provider Hunting PLC’s (LON:HTG) shares were down 3.4% to 548p, while power supplier Aggreko PLC (LON:AGK) dropped 1% to 740p.
Major Market Hydraulic Fracturing Players in The U.S:
United Oilfield Services
Tacrom Services S.R.L
Calfrac Well Services
Superior Well Services
Cudd Energy Services
and Trican Well Services Ltd.