Industry Trend Analysis - North America Leads OFS Recovery - JUNE 2017


BMI View: North America, the Middle East and parts of Asia will lead the recovery in oil and gas spending over 2017 and hold the best opportunities to support a return to profitability for oil field service companies.

Fourth quarter results from the big oilfield service providers indicate a gradual improvement in the health of the oil sector. Despite recording the weakest revenues since 2009 over financial year 2016, Baker Hughes, Halliburton and Schlumberger all showed q-o-q improvements in revenue for Q416.

A geographical breakdown of revenue shows two stories. The North American and Middle East markets are improving, while Europe, Africa and Latin America continue to struggle. Combined revenues by region from the three companies show the evolution of this trend.

Revenues Bottom & Recover
Revenues Adj, USDmn
BHI = Baker Hughes, HAL = Halliburton, SLB = Schlumberger. Source: Bloomberg

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