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Quest for better welfare

US oilfield firms face pricing squeeze as fracking demand slumps


//business-finance.news-articles.net/content/202 .. e-pricing-squeeze-as-fracking-demand-slumps.html
Published in Business and Finance on by Reuters   Print publication without navigation

Top U.S. oilfield services firms are facing weaker pricing and revenue this year as oil producers become increasingly efficient and keep a cap on spending, according to oilfield executives and analysts.

The article from Reuters discusses the challenges faced by U.S. oilfield service companies due to a significant drop in demand for hydraulic fracturing (fracking) services. As of January 2025, the demand for fracking has slumped, leading to a pricing squeeze for these firms. This downturn is attributed to several factors including lower oil prices, reduced drilling activity, and a shift by oil producers towards capital discipline rather than aggressive expansion. Companies like Halliburton, Schlumberger, and Baker Hughes are experiencing pressure on their pricing power as clients push for lower costs. The article highlights that the fracking market, which had seen a boom in previous years, is now facing an oversupply of services, leading to competitive pricing and reduced profitability. Additionally, the industry is adapting to new technologies and methods that might reduce the need for traditional fracking, further impacting service demand.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/energy/us-oilfield-firms-face-pricing-squeeze-fracking-demand-slumps-2025-01-28/ ]

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