Oil Drilling Recovery Unlikely This Year, Baker Hughes Says
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Baker Hughes Co. lowered its expectations for U.S. shale activity, saying an anticipated recovery in oil drilling is no longer likely this year.
The world’s No. 2 oil services provider by market value now forecasts 2024 exploration spending in North America to fall by mid-single digits compared to last year, CEO Lorenzo Simonelli said July 26 on an earnings call. The Houston-based company previously expected a decline in the low- to mid-single digit range.
Baker Hughes, the last of the big three oilfield service providers to post second-quarter results, joined rivals SLB and Halliburton Co. in forecasting growth for international and offshore oil activity while U.S. shale work slows amid consolidation, careful spending and lower natural gas prices.
Shares rose as much as 4.8% to $37.29 Friday after the company reported better-than-expected profits and boosted the midpoint of its full-year guidance by 5%.
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