Houston-based Halliburton, the second largest oilfield service company in the world, closed 2019 with a $1.7 billion loss. Most of that end-of-year loss was attributed to writing down equipment to service the U.S. shale industry, which the company’s CEO Jeff Miller said is facing its greatest challenge since the 2015 downturn.
The capital-intensive U.S. shale industry is facing its biggest challenge since a 2015 downturn that resulted in dozens of companies filing for bankruptcies, billions of dollars in losses and tens of thousands of layoffs as oil prices sputter, producers cut back and Wall Street investors become unwilling to float the bill, the CEO of the Houston oil field services company Halliburton said.
A decade of horizontal drilling and hydraulic fracturing made the United States an energy powerhouse again, but crude oil prices stuck in the $50-to-$60 per barrel range over the past year have made shale unprofitable for most companies, resulting in substantial cuts to drilling and fracking activity in shale plays from Texas to Pennsylvania and North Dakota. That situation has placed tremendous pressure on oilfield service companies to slash prices for their products and services.
Read it from HoustonChronicle.com – Photo as posted on Houston Chronicle ( Steve Gonzales, Staff Photographer / Houston Chronicle )