Halliburton Warns of a Crisis in the Oil and Gas Industry of the United States of America
The stock prices of oilfield services companies in the United States of America have fallen by approximately 6 percent, according to Reuters. Many participants in the oilfield services sector believe they will not be able to generate profit from new drilling operations if the price of crude oil falls below 65 United States dollars per barrel. Furthermore, the oilfield services industry is concerned that import tariffs on steel and components, introduced by the President of the United States of America, will disrupt supply chains. These tariffs are expected to result in increased equipment costs, particularly affecting drilling rigs and casing pipes for oil and gas wells.
“Plans to reduce drilling activity in 2025 may carry greater implications than usual. In some cases, this could lead to the decommissioning or export of drilling fleets to international markets,” said Jeff Miller, Chief Executive Officer of Halliburton.
Halliburton reported that revenue in North America for the first quarter amounted to 2.2 billion United States dollars, representing a 12 percent decrease compared to the same period in the previous year. International revenue declined by 2 percent, mainly due to reduced activity in drilling and project management operations in Mexico. The company forecasts that international revenue on a year-over-year basis will remain unchanged or may slightly decline.
Halliburton expects that revenue from its Completion and Production segment will increase by 1 to 3 percent in the second quarter compared to the first quarter, with profit margins remaining at approximately the same level.
Net profit for the first three months of the year totaled 204 million United States dollars, or 24 United States cents per share, compared to 606 million United States dollars, or 68 United States cents per share, recorded during the same period in the previous year.
