Global Industry: The Beginning of Strong Cycle for Oil and Gas

We’re at the beginning of a very strong cycle for oil and gas. That’s according to Jeffrey Miller, Halliburton CEO, who expressed his view in a television interview with Bloomberg.

“We went through a really tough four years of downturn, a lot of underinvestment in oil and gas that whole time, now it’s time it’s coming home to roost,” Miller told Bloomberg’s Alix Steel in the interview.

“The reality is, our outlook for oil and gas and supply and demand is very constructive and I think we’ll see that play out over the next several years. Really feel like we’re at the beginning of a very strong cycle for oil and gas, particularly services,” he added.

Halliburton recorded a total revenue of $6.172 billion in the third quarter (3Q) of this year. This compared to a total revenue of $5.444 billion during the same period last year. Total operating income for the company was $716 million in 3Q, compared to $642 million in 3Q 2017. Net income attributable to Halliburton was $435 million in 3Q, up from $365 million in 3Q 2017.

“I am pleased with our overall financial results for the third quarter. Our team optimized our performance in North America in the face of short-term challenges, and the recovery of our international operations continued,” Miller said in a company statement posted on October 22.

“Total company revenue of $6.2 billion was essentially flat quarter over quarter, while operating income was $716 million, a nine percent decrease compared to the second quarter of 2018, largely due to the softening North America market for completion services,” he added.

“I am confident that Halliburton has the right strategy, technology, and services to deliver industry leading returns. We remain the leader in North America, which we believe is poised for a better 2019, and Halliburton is better positioned than it has ever been for the international recovery,” Miller continued.

Halliburton, which was founded in 1919, is one of the world’s largest providers of products and services to the energy industry. The company has over 55,000 employees, representing 140 nationalities in more than 80 countries.