Rig service companies show mixed sentiments
In the last part of the series, we discussed rig count activity in the US onshore and offshore fields. In this part of the series, we’ll discuss the major oil and gas field service companies’ outlook on the US market.
In its latest earnings press release, Baker Hughes said, “We project the U.S. onshore well count will continue to modestly increase into the fourth quarter as we expect the holiday period slowdown to be less pronounced than prior years.”
In its 3Q14 press release, Schlumberger didn’t specifically disclose its outlook for US rig activity. However, it did express concern about the energy oversupply. It said, “Market sentiments are currently driven by short-term oversupply due to the continued growth in North America production.”
You can learn more by reading “Overview: Oil and gas field service Schlumberger’s 3Q14 results.”
Transocean (RIG) is an offshore oil drilling company. It recorded an ~$2.6 billion impairment charge in 3Q14. This was due to “decline in the market valuation of the company’s contract drilling services business.” The decline in crude oil price prompted the impairment charge.