Explorers and producers are constrained by the reduction in capacity for borrowings and an increase in the cost of capital. Also, explorers are facing constant pressure from investors so that they focus more on providing higher returns instead of production growth. These headwinds are likely to lower investments by explorers and producers in the land market of North America. Hence, conservative customer spending is going to hurt the demand for the company’s oilfield services.
Halliburton, the biggest players in the oilfield services sector is wasting no time cutting back it’s U.S Fracking workforce.
Halliburton believes operators will focus more on production optimization, surface efficiency and getting more out of wells already producing or set for completion. Miller pointed to the company’s success in the early part of the year with electronic submersible pumps and other.
Forbes.com If we look at the Texas year-over-year gains over the past few years, there has been a noticeable slowdown in oil production growth.
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The oil-rich Permian basin is slowing – Bad News For Halliburton?