The heads of the two largest oilfield service companies, Halliburton and Schlumberger, have warned investors that their business is going to get worse before it improves as operators are likely to cut activity during the remainder of this year and into 2016.
The rationale for the gloom is that many operators have spent substantially all the money they have allotted for 2015 after cutting their planned capital spending to stay afloat during the downturn, and tough choices likely mean new budgets will take longer than normal to enact, pushing off activity next year.
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