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
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
