Oilfield services bounce back as US drilling boom gathers pace

Oilfield services bounce back as US drilling boom gathers pace

A drilling boom in America’s oil heartlands has triggered a sharp reversal of fortunes for the country’s long-suffering oilfield services groups as they reap the rewards of the scramble to pump more crude.

Many producers have rushed to open the taps to capitalise on soaring oil prices since Russia’s invasion of Ukraine, ratcheting up demand for the companies that drill and frack new wells.

“At $100 oil, everything is busy,” said Jeff Miller, chief executive of Halliburton, one of the world’s biggest oilfield services companies, whose profits jumped more than 50 per cent in the first quarter.

The sector, responsible for the grunt work across the US oil patch, has been slow to recover since the pandemic-induced price crash of 2020 sent scores of companies into bankruptcy.

But high prices have spurred renewed activity in US oilfields, largely driven by private operators. The rig count is up 20 per cent since the start of the year and nearly 60 per cent over the past 12 months, according to data from Baker Hughes, one of the oilfield services companies.

The frac spread, which measures the quantity of fracking equipment in the field, has jumped 15 per cent this year according to data provider Primary Vision. In