Services Firms Eye Mideast Counterweight To US Downturn

*Q4 results from key drilling firms Schlumberger and Halliburton indicate that both expect the recent lull in US drilling activity to last for much of, if not all 2019. “We expect in North America total E&P investments to be flat to down, which means I think it’s going to be fairly tough year in North America,” Schlumberger CEO Paal Kibsgaard told his firm’s Q4 earnings call on 18 January.

*This is borne out by the latest US weekly rig count numbers which show 852 active drilling rigs targeting oil, down more than 30 from late-2018 levels. Schlumberger’s North America revenue was down 12% q-o-q in Q4 “as customers dramatically cut fracturing activity in response to lower oil prices.” (CONTINUED - 870 WORDS)

DATA INSIDE THIS ARTICLE

chart Schlumberger Mideast* Earnings Edget Up To A 2-Year High Of $2.46bn In Q4 As North America Earnings Nosedived
chart Halliburton Is More Heavily Dependent On The US But An 8% Rise To $1.24bn In Mideast* Earnings Provided A Handy Counterbalance To The End-Year US Slump
chart Global* Offshore Rig Count Hits 3-Year High Of 260 In January