• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 7 hours Dr. Fauci is over rated.
  • 2 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 18 hours Dept of Energy ditches plans to buy Crude Oil for SPR
  • 4 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 1 min TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 7 hours Where's the storage?
  • 1 hour Hillary Clinton tweeted a sick Covid joke just to attack Trump
  • 4 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
  • 18 hours Wastewater Infrastructure Needs
  • 1 day Analysis into the Iran Outbreak
  • 19 hours >>The falling of the Persian Gulf oil empires is near <<
Alt Text

Oil Tumbles Towards $20 As Glut Grows

The brief rebound in oil…

Alt Text

Russia’s Unexpected Advantage In The Oil Price War

The global economic downturn due…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Why Oilfield Service Giants Are Dumping Assets

The three biggest oilfield service providers have all announced asset sales as they adapt to an environment featuring laxer demand for their services, Reuters reports.

Halliburton is selling its pipeline and process services business and hopes to find a buyer and finalize the sale by the end of June.

Schlumberger and Baker Hughes are selling various business operations, according to unnamed sources who spoke to Reuters, that could fetch up to $200 million each.

Combined, the asset sales sought by the big three, which hold a combined 26 percent of the oilfield services market, could generate $800 million.

Analysts recently said they expected Halliburton to report a decline in profits for the fourth quarter of 2019. For Schlumberger, however, some expected a forecast-beating result for 2019, thanks to the company’s diversification away from its core home market—they were not disappointed. On Friday before the bell, Schlumberger reported better than expected Q4 earnings and improved free cash flow.

Expectations are optimistic for Baker Hughes, too. The company had a strong year, according to analysts, thanks to an LNG project and the cost synergies it reaped after integrating parent company GE’s energy business. Analysts are upbeat about its financial performance in 2019, especially after it reported strong earnings for the third quarter.

Baker Hughes and Halliburton are reporting fourth-quarter and full-year results later this month. Although all three weathered the effects of the latest oil price crash, they are still bearing the consequences of the so-called new normal in oil, where exploration and production companies as well as the vertically integrated supermajors seek to keep their costs to a minimum with returns at a maximum.

The focus of E&Ps on cost control has led to a spike in demand for services involving automation and other cutting-edge tech, so the three top oilfield service providers are now turning into technology companies to respond to this demand. They are also reinforcing their focus on their service-driven operations, to pursue growth even when drilling activity slackens off.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News