Signs of US oil output hitting wall amid shortage of services
Service provider Halliburton sees customers “tapping the brakes”
The US shale boom, which has helped send global oil prices plummeting, is showing signs of abating, reports the Financial Times.
Paris-based research firm Kayrros forecasts that there will be less oil coming into the global markets over the next few months, a development which would support oil prices that have steadied since dipping below US$45 per barrel in June.
A capacity shortage could enable oilfield services firms such as Halliburton to raise rates, but profitability of US producers will remain under pressure.
Halliburton reported impressive second quarter results on Monday, but also said that the North American rig count growth was slowing, sending shares down as much as more than 4%.
“Today, rig count growth is showing signs of plateauing, and customers are tapping the brakes,” Halliburton Executive Chairman Dave Lesar was quoted by Reuters as saying.
“This tapping of the brakes is happening all over the place in North America.”