Equipment Shortages, Job Losses to Dampen Swift U.S. Rig Recovery, According to Raymond James

摘要

A modest recovery in the U.S. rig count is expected in the last half of this year, but the damage done to the oilfield services sector will hamper a robust recovery, according to Raymond James & Associates Inc. Analysts J. Marshall Adkins and Praveen Narra said in a note that based on conversations with OFS providers and industry insiders, “we now believe the pace of the U.S. rig count and oilfield activity recovery in 2017 will be slowed” by three things: 1. Balance sheet repair, both for the OFS sector and exploration and production (E&P) companies; 2. Labor constraints; and 3. Equipment attrition in pressure pumping.