Industry Insight Report: Drilling Oil & Gas Wells Q3-2024
Industry Insight Report: Drilling Oil & Gas Wells Q3-2024
Declining Rig Count Sapping Demand For Services
A declining rig count, consolidation in the energy sector, and weak natural gas prices are sapping demand for oil field services in the nation’s oil patch, The Wall Street Journal reports. According to data from Baker Hughes, the oil and gas rig count in North America has been steadily declining 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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Industry Forecast
Sales for the US oil and gas support services industry are forecast to grow at a 7.09% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy.
By the Numbers
Employment by oil and gas support services decreases Overall employment by oil and gas support services changed -2.2% in July compared to a year ago, according to the latest data from the Bureau of Labor Statistics.
Wages at oil and gas support services rise Average wages for nonsupervisory employees at oil and gas support services were $34.48 per hour in July, a 4.5% change compared to a year ago.
Lion Business Advisors quarterly industry insights data provided by VerticalIQ industry intelligence platform
Industry Insight Report: Drilling Oil & Gas Wells Q3-2024
Declining Rig Count Sapping Demand For Services
A declining rig count, consolidation in the energy sector, and weak natural gas prices are sapping demand for oil field services in the nation’s oil patch, The Wall Street Journal reports. According to data from Baker Hughes, the oil and gas rig count in North America has been steadily declining 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.
News Spotlight:
AI Boom Is Driving a Surprise Resurgence of USA Gas-Fired Power
Rigzone: Full Article »
Industry Forecast
Sales for the US oil and gas support services industry are forecast to grow at a 7.09% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy.
By the Numbers
Employment by oil and gas support services decreases
Overall employment by oil and gas support services changed -2.2% in July compared to a year ago, according to the latest data from the Bureau of Labor Statistics.
Wages at oil and gas support services rise
Average wages for nonsupervisory employees at oil and gas support services were $34.48 per hour in July, a 4.5% change compared to a year ago.
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