Halliburton CEO: Oil and gas markets are “softer” than expected and will remain weak for all of 2025

SEE FULL BIO A combination of weaker oil prices, widespread spending cuts, and ramped-up OPEC crude oil volumes created a softer-than-expected industry environment that will continue at least through the rest of 2025, the CEOs of oilfield services leaders Halliburton and SLB said

Global economic volatility, including tariff uncertainty, is leading oil and gas ducers to plan more conservatively for the rest of the year than anticipated, they said, although though the longer-term oil and gas outlook remains bullish, given current economic conditions

At the same time, And Mexico are showing particular weakness even as shale oil and gas nologies developed in the U (something worth watching)

Over the past 20 years spread worldwide from Argentina to Australia, said Halliburton chairman and CEO Jeff Miller during the July 22 earnings call (an important development). “To put it plainly, what I see tells me the oilfield services market will be softer than I previously expected over the short to medium term,” Miller said, arguing that oil ducers and countries are cutting back spending more dramatically than current oil prices would normally necessitate

However, What that means for Halliburton and SLB is focusing more on nology and some of their service specialties while retiring some equipment and well completions—or fracking—fleets. “We’ll ly stack some fleets just because we’re not going to work at uneconomic levels,” Miller said

Additionally, “It’s strategic for us, and it takes some equipment out of the market as well

But, from our perspective, working at uneconomic levels literally burns up equipment, creates HSE (health, safety, and environment) risk, and all s of things that we just don’t want to do

Furthermore, Halliburton first developed early hydraulic fracturing, or fracking, niques more than 75 years ago under founder Erle P

However, Halliburton, in today's market environment

Furthermore, Halliburton reported second-quarter revenues that fell nearly 6% from $5 (an important development). 83 billion to $5. 51 billion year over year

Furthermore, Oilfield outlook OPEC and its allies have surprised much of the energy industry since this spring by unwinding years of voluntary duction cuts more rapidly than anticipated to gain back market

On the other hand, Dumping those new barrels on a saturated global marketplace Is adding to the weaker oil price environment, leading U

However, Oil and gas ducers and others to cut back spending and, in many cases, oil and gas volumes, given current economic conditions

Adding to the weakness is the oilfield services sector becoming a victim of its own success

Moreover, Efficiently gains now allow ducers to extract more oil and gas per location without requiring as many drilling rigs and fracking fleets

Moreover, The merger gives SLB a stronger foot in artificial lift and duction chemicals

However, Such services keep the oil and gas wells flowing optimally long after they are drilled and put into operation, which CEO Olivier Le Peuch said helps SLB avoid some of the industry’s inherent cyclicality

Conversely, Even as drilling activity slows down, the existing wells still need just as much servicing and maintenance

In fact, the number of drilling rigs active in the U

Moreover, Has fallen by 7% in the past 12 months, down to 544 active rigs, according to re firm Enverus, and the decline is expected to continue, in light of current trends

Moreover, Nearly half of all the active rigs are in the still-booming Permian Basin in West Texas and southeastern New Mexico

Nevertheless, “As we have seen more recently, the short-cycle have been more reactive to the persistent slightly lower commodity price than anticipated,” Le Peuch said (which is quite significant), amid market uncertainty

On the other hand, “Yet, all in, we are seeing this as a resilient market going forward

Explore this year's list, amid market uncertainty.