Written by Emma Sanchez
The world’s largest oilfield services provider is counting on production increases in the Middle East to offset the slowdown in U.S. shale.
That’s one of the key takeaways from comments this week from executives at Helmerich & Payne and Patterson UTI Energy, who pointed to opportunities to boost growth in countries such as Saudi Arabia. The comments echoed forecasts from industry giants such as SLB and Weatherford International, who expect the Middle East region to lead the recovery in activity from the end of 2026 to 2027.
Operators in the U.S. shale region, which once led the world in oil production growth, are now closely monitoring commodity markets that are hovering around levels where drilling is profitable for producers. If oil prices fall to the low $50s a barrel for several months, companies are expected to cut back drilling and fracking in the U.S. even more significantly.
Global oil prices have been steadily falling over the past few months on expectations of oversupply. The U.S. benchmark, West Texas Intermediate, has fallen more than 10% over the past year and was trading around $63 a barrel as of Thursday.
But some Middle Eastern producers are better able to sustain lower oil prices, highlighting why oilfield services companies are seeking growth there. Hydraulic fracturing projects to extract natural gas are also emerging in the region as governments face rising electricity demand, industrial expansion and petrochemical expansion.
Below are recent comments from oilfield service companies.
Helmerich & Payne
The company, one of the top drilling rig contractors in the U.S. shale region, said it is in the process of restarting a mothballed rig in Saudi Arabia. During Thursday’s earnings call, incoming CEO Trey Adams said the company remains excited about further opportunities in the region.
Patterson-UTI Energy
The company opened a drill bit manufacturing facility in Saudi Arabia that began operations in December, CEO Andy Hendricks said on a call Thursday to discuss fourth-quarter results.
S.L.B.
SLB CEO Olivier Le Pouch said in an earnings call on January 23 that the recovery in oil production from OPEC+ policies and gas being a priority to meet regional demand will lead to “strong conditions” in the coming years. “The Middle East market is characterized by a recovery in drilling and workover activity in Saudi Arabia, with rig numbers likely to return to early 2025 levels by the end of 2026, and this has already begun,” Le Pouche said. he said.
weatherford
Weatherford International, which gets much of its business from the Middle East/North Africa region, sees “strong opportunities” in Saudi Arabia and momentum in countries such as the United Arab Emirates, Kuwait and Oman, CEO Girish Saligram said on an earnings call Wednesday.
halliburton
Halliburton, the world’s largest provider of hydraulic fracturing services, is taking a more cautious view, saying it expects activity in the region to be flat or slightly down in 2026, CEO Jeff Miller said on a Jan. 21 earnings call. “We’re very aware of the increase in activity in Saudi Arabia, but we’re a little more conservative about the timing and pace of that recovery,” Miller said. “It’s likely that it will happen, but it’s not very clear to me how impactful it will be or how soon it will happen.”
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