Industry Insight Report: Drilling Oil & Gas Wells Q3-2024

Declining Demand for Oil Field Services A declining onshore rig count, consolidation in the energy sector, and weak natural gas prices are sapping demand for oil field services in the US oil patch, The Wall Street Journal reports. According to data from Baker Hughes, the oil and gas rig count in North America has been declining steadily since peaking in late 2022 and remains below pre-pandemic levels. In July, oil field giant Halliburton reported its rig count in the region declined 12% in Q2 compared with a year earlier and that its revenue in the region fell 8%, the fourth consecutive quarter of decline. Similarly, rival SLB’s revenue in North America dropped 6%, according to WSJ. Haliburton and SLB are faring better abroad, with international revenue up 8% and 18% year over year, respectively. Halliburton’s CEO told WSJ he thinks activity in North America should pick up in 2025 after producers digest their acquisitions.

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