Activity

Contract driller Helmerich & Payne Inc. is keeping its fleet in top-notch shape for an eventual industry upturn, but management conceded on Monday that a return to business-as-usual is unlikely before the second half of the year.

After plummeting 28 rigs in the week-ago tally, the Baker Hughes Inc. census of active U.S. drilling rigs held steady with the previous week in the report issued Friday (Dec. 18).

Drillers voted overwhelmingly in favor of oil in the latest Baker Hughes Inc. U.S. rig count. While the overall U.S. count was static, 17 oil rigs were added, neatly offset by the departure of 17 natural gas rigs.

The upstream oil and gas industry, which has managed to stay afloat this year through mergers, debt and derivatives, is poised to hit even choppier seas in 2016 as acquisition activity slows and leveraged companies face increased probabilities for defaulting, according to a cadre of energy experts.

North American onshore activity isn’t showing any signs of recovery, with demand continuing to decline for stimulation, drilling services and completions product lines, Baker Hughes Inc. reported Wednesday.

Schlumberger Ltd., the world’s largest oilfield services operator and industry bellwether, delivered somber third quarter results, with CEO Paal Kibsgaard warning that the worst isn’t over.

Forecasters with the National Oceanic and Atmospheric Administration (NOAA) said there is a 90% chance that this year’s hurricane season will be below normal, but they added that while 2015 could be the third consecutive year for reduced hurricane activity, it was too early to tell whether it was the beginning of a trend that could last decades.

The North American rig count may be near a bottom, but it could be months before land operations show any signs of improvement, Schlumberger Ltd. CEO Paal Kibsgaard said Friday.

A pullback in the Gulf of Mexico from exploration to development, as well as a dramatic decline in onshore activity, could push a recovery in North American activity to the end of the year or later, Schlumberger Ltd. CEO Paal Kibsgaard said Friday.