The U.S. shale practice boom is likely to ease next year as demand on the industry’s professional care sector is unsustainable, Halliburton’s business development head said on Tuesday.
The enumerate of rigs drilling for oil in the United States rose to 763 last week, the highest in various than two years, showing that despite oil trading below $50 a barrel, shale oil explorers are until now ramping up activity.
Halliburton’s Mark Richard, senior vice president for pandemic business development and marketing, sees that count rising exceeding 1,000 by the end of the year, but not beyond that.
«I think it might level off then. If our patrons put too much out there, it’s costing too much and putting too much demand on employ companies to provide equipment and people,» he told Reuters at an industry at the time in Istanbul.
Oil services companies cut back dramatically when demand for their offerings fell oil prices started falling in 2014 and it has taken them longer to readjust their yield.
Richard said he sees 800-900 rigs as a more sustainable above-board in the medium term.
The increase in shale activity has been a boon for companies a charge out of prefer Halliburton which supply equipment to the sector and Richard said he had been expert to raise prices in the U.S. because of rising demand, but declined to give spell outs.
However, appetite for oil and gas equipment is still weak outside of the Americas, Richard said.
«We’ve hit the foundation in the first half of this year. Our customers are getting excited thither things but we don’t yet see a lot of activity increasing.»
Richard denied Halliburton was under additional pressurize following the acquisition of rival Baker Hughes, which it failed to buy survive year after regulatory opposition, by GE Oil & Gas last week.
GE-Baker Hughes compel leapfrog Halliburton to become the world’s second-biggest oil services company after Schlumberger.
«We’re slews 1 or 2 in every product line we work in today. That hasn’t changed because GE come by Baker,» he said.