Weaker oil prices, widespread spending cuts, and increased OPEC oil volumes are contributing to a challenging industry outlook, expected to persist through 2025. Major oilfield service companies are adopting conservative planning strategies amid global economic volatility, including tariff uncertainties. The U.S. and Mexico are experiencing notable weaknesses, despite advancements in shale technology. Halliburton and SLB are shifting focus on technology and efficiency while reducing equipment use to avoid operating at uneconomic levels, with current U.S. oil pricing benchmarks indicating a need for price increases for healthier market conditions.
To put it plainly, what I see tells me the oilfield services market will be softer than I previously expected over the short to medium term. Oil producers and countries are cutting back spending more dramatically than current oil prices would normally necessitate.
We'll clearly stack some fleets just because we're not going to work at uneconomic levels. It's strategic for us, and it takes some equipment out of the market as well.
The U.S. oil pricing benchmark is about $66 per barrel, and it would need to rise well above $70 to be considered relatively healthy for the industry.
Halliburton is growing market share with its new autonomous and electrified fracking fleets, called Zeus IQ, and has partnered with Chevron.
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