Ofse firms diversify away from North America

Nosediving revenues are forcing companies to shift capital to international assets

Oilfield services and equipment (Ofse) companies exposed to US shale suffered heavy bruising last year as drilling activity all but evaporated and Lower 48 production went into freefall. Combined, the sector’s three giants—Schlumberger, Halliburton and Baker Hughes—posted a huge $23.3bn loss, offset only by stronger international performance. And against limited domestic US drilling and widespread capital discipline across the shale sector in 2021, firms with a diverse international asset base are best placed to recover post-pandemic. “We expect those companies with large, diversified revenue streams with a mix tilted towards the international markets to recover better,” says James West, fun