{"id":45499,"date":"2019-04-19T12:17:49","date_gmt":"2019-04-19T17:17:49","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45499"},"modified":"2019-04-19T12:17:49","modified_gmt":"2019-04-19T17:17:49","slug":"the-undeniable-signs-of-a-shale-slowdown","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45499","title":{"rendered":"The Undeniable Signs Of A Shale Slowdown"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/The-Undeniable-Signs-Of-A-Shale-Slowdown.html\">The Undeniable Signs Of A Shale Slowdown<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/673c5020cd2cb1f3f5a95d86fe04d069.jpg\" alt=\"Pump jack\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The world\u2019s largest oilfield services company said its earnings were hit in the first quarter because of a slowdown in shale drilling activity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFirst-quarter revenue of $7.9 billion declined 4% sequentially, reflecting the expected reduction in North America land activity and seasonally lower international activity in the Northern Hemisphere,\u201d Schlumberger CEO Paal Kibsgaard said in a&nbsp;<a href=\"https:\/\/www.slb.com\/news\/press_releases\/2019\/2019_0418_q1_earnings.aspx\">statement<\/a>. Pricing for its services was \u201csoft,\u201d while fracking and other \u201cdrilling-related businesses\u201d saw a dip in activity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company was unbowed, noting that the weakness in North America is offset by improving conditions globally. \u201cFrom a macro perspective, we expect the oil market sentiments to steadily improve over the course of 2019,\u201d as the OPEC+ cuts tighten up the market. Also, Kibsgaard said that the \u201cweakening of the international production base\u201d after \u201cfour years of underinvestment\u201d will become \u201cincreasingly evident,\u201d which should spark an uptick in spending.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The global E&amp;P sector is \u201cstarting to normalize.\u201d In fact, spending could rise by 7 to 8 percent this year around the world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, U.S. shale is in a different situation. After spending heavily for years, which successfully ramped up production to record heights, many shale companies are still not performing well financially. As a result, the U.S. shale industry is at somewhat of an inflection point. Kibsgaard said that the sector is \u201cset for lower investments with a likely downward adjustment to the current production growth outlook.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the industry is looking up globally, the outlook for U.S. shale is rather downbeat. \u201c[T]he higher cost of capital, lower borrowing capacity, and investors looking for increased returns suggest that future E&amp;P investment levels will likely be dictated by free cash flow,\u201d Kibsgaard said. \u201cWe therefore see E&amp;P investments in North America land down 10% in 2019.\u201d\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Undeniable Signs Of A Shale Slowdown The world\u2019s largest oilfield services company said its earnings were hit in the first quarter because of a slowdown in shale drilling activity. \u201cFirst-quarter revenue of $7.9 billion declined 4% sequentially, reflecting the expected reduction in North America land activity and seasonally lower international activity in the Northern [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[6010],"class_list":["post-45499","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-nick-cunningham"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45499"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45499\/revisions"}],"predecessor-version":[{"id":45500,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45499\/revisions\/45500"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}