North American onshore drilling carried the “earnings growth torch” for Schlumberger Ltd. in the first quarter, even though softer pressure pumping pricing and activity caused less equipment to be reactivated than expected. Halliburton Co., Weatherford International plc and Baker Hughes, a GE Company, also reported tightening conditions, likely leading to better pricing in the months ahead.
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Houston-based Superior Energy Services Inc., which makes its mark in the U.S. onshore with its pressure pumping services and specialized drilling, said a lack of direction regarding overall spending plans by producers and “supply chain stress” have created some uncertainty about the outlook for 2018.
Houston’s Kirby Corp. and Stewart & Stevenson LLC (S&S), whose manufacturing and services offerings are expanding rapidly in the Permian Basin, Eagle Ford Shale and in Oklahoma, agreed late Tuesday to combine in a deal estimated to be worth close to $710 million.
Relief that had been expected for the oil and gas sector isn’t going to happen, and the situation may deteriorate even more, Patterson-UTI Inc. management said Thursday.
Calgary-based Trican Well Service Ltd. said late Tuesday it is negotiating to sell its U.S. pressure pumping business to Houston’s Keane Group for an undisclosed amount.
North American onshore pressure pumping pricing has deteriorated to an “unsustainable level,” and the U.S. rig count is going to decline even more into 2016, Patterson-UTI Energy Inc. (PTEN) management said Thursday.
The pressure pumping industry is becoming more efficient and learning “to do more with less,” adding overall capacity for hydraulic fracturing (fracking) operations but also oversupplying the market and keeping pumping prices competitive for the next 12-18 months, according to analysts at UBS Securities LLC.
The three biggest pressure pumping providers serving U.S. operators — Halliburton Co., Schlumberger Ltd. and Baker Hughes Inc. — are facing a class action antitrust lawsuit over alleged price manipulation, which comes two weeks after the U.S. Department of Justice (DOJ) launched an investigation.
Encana Corp.’s latest quarterly profits took it on the chin because of low natural gas prices, but the Calgary producer is responding with a realignment by transferring proven gas shale technology to liquids plays, advertising for partners to share costs in gassy northeast British Columbia (BC), and quietly acquiring an oily leasehold in Alberta’s Duvernay Shale.
Drilling equipment demand in the global offshore, combined with unstoppable pressure pumping activity across North America, boosted the year/year performance for Houston’s National Oilwell Varco (NOV), executives said Thursday.