WTI crude is trading down about $1 after climbing $5 yesterday.
Looking ahead, the outlook will depend on how quickly oil companies can bring more production online and how badly they want to drill. The inventory of drilled but uncompleted wells (DUCs) is being quickly drawn down in the US and even with a rising rig count, that will make it tough to add oil.
On both fronts, Halliburton is warning there will be disappointment.
Here are some highlights from the conference call, which is ongoing now:
- As we look at the second half of the year, we are essentially sold out
- The oil and gas labor market is white hot
- Existing active equipment and experienced crews are in high demand and will continue to be into 2023
- Spare OPEC capacity is at historic lows, the SPR releases is unsustainable and the risk to Russia remains high
- Post-pandemic economic expansion, energy security requirements and population growth will continue to drive oil demand
- It's 'almost impossible' to add frac capacity in 2022
Shares of the company are up 1.5%.
Rig count chart from National Bank:
