Service Companies Cautions about 2015 Drilling Activity

Schlumberger, the largest oilfield service company in the U.S. commented on 2015 activity, “In response to the falling oil prices, the industry is currently in the process of significantly reducing E&P investments which will lead to a reduction in supply as declining rates impact current production capacity and lower exploration and development activity delay supply additions.” Haliburton management stated, “price discount discussions with customers did begin in the fourth quarter and have accelerated over the past several weeks. And price reductions are now occurring across all product lines.”