US Oil Producers Feel Oil Price Pinch the Sharpest

The decline in the price of oil is going to wipe out a major swath of US oil shale production.

Schlumberger, Halliburton and Baker Hughes, the three largest international service companies that support oil and gas producers with activities such as drilling, completing and analyzing wells report taht activity is dropping off much more sharply in North America than in the rest of the world, according to FT.

Schlumberger’s customer capital expenditures, for both the majors and smaller companies, is dropping by 25-30 per in North America compared with 10-15 per cent in the rest of the world.

Halliburton's CEO Dave Lesar says his firm is seeing about a 25-30 per cent fall in activity in the US and predicted a period of “volatility and pain for a few quarters”.



 -RW