Schlumberger’s CEO said, “The industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services.” Indeed, while there is a debate about the severity of price decline that U.S. shale drillers could endure without shrinking activity, Dallas Fed survey data and Baker Hughes’ weekly rig count reports suggest that West Texas Intermediate below $65 begins to affect activity and the lower it goes, the more severe the impact on drillers, and, by extension, oilfield service providers. Diamondback Energy and Coterra Energy are among them, while the CEO of Formentera Partners, Bryan Sheffield, told Bloomberg last month that “The industry needs to cut immediately and hunker down to let the tariff war play out,” describing the current situation in the industry as a “bloodbath”.
Author: Irina Slav
Published at: 2025-05-12 23:00:00
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