Three of the largest oil service companies posted falling oil field revenues in the second quarter of this year, indicating the toll that tariffs and wider economic uncertainty are taking on the fuels economy.
Houston-based Halliburton and SLB posted year-over-year net income declines of 33 percent and 9 percent, respectively, in the second quarter. Baker Hughes posted a 10 percent drop in its oil field service business, though its overall income grew by 21 percent with help from its energy technologies line.
As the companies that help oil and gas producers stand up new wells, service companies are often quick to see revenue drops when drilling activity tightens. Fluctuations in oil prices have pushed the number of active rigs lower. After trading at more than $80 per barrel in January, crude oil is trading at below $70 per barrel.
“What I see tells me the oil field services market will be softer than I previously expected over the short to medium term,” Halliburton President and CEO Jeff Miller said in a Tuesday statement. The company’s net income for the second quarter was $480 million.
