Oilfield services share in the economic gloom
Industry downturn forecast as wave of E&P companies forced to dramatically cut capex
Oilfield services and equipment (OFSE) companies find themselves caught in a perfect storm of financial uncertainty as global measures to prevent the spread of Covid-19 aggravate an already ruinous oil price setting reminiscent of the 2014 crash. Efforts by Saudi Arabia to cripple the US shale patch, following Russia’s refusal to maintain production cuts, could wreak particular havoc on the growth plans of US-focused firms. Many firms’ capex budgets have been slashed and a swathe of bankruptcies could follow. “We now expect exploration and production spending to fall by 30pc in North America versus original projections for a 10pc decline,” says James West, senior managing director at bank Ev
Also in this section
10 March 2026
By shutting the Strait of Hormuz, Iran has cut exports of distillate-rich Middle Eastern crude, jet fuel and diesel, and is holding the energy market hostage
10 March 2026
Eni’s director for global gas and LNG portfolio, Cristian Signoretto, discusses how demand will respond to rising LNG supply, and how the company is expanding its own gas and LNG operations through disciplined, capital-efficient investments
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
9 March 2026
Energy sanctions are becoming an increasingly prominent tool of US foreign policy, with the country’s growth in oil and gas production allowing it to impose pressure on rivals without jeopardising its own energy security or that of its allies, argues Matthew McManus, a visiting fellow at the National Center for Energy Analytics
