Home / Business / Halliburton CEO jumps on the “reverse oil price slump” bandwagon
The company logo of Halliburton oilfield services corporate offices is seen in Houston, Texas in this April 6, 2012, file photo. Halliburton Co is in talks to settle private claims against it in a trial to determine how blame should be shared for the 2010 Gulf of Mexico spill, the company said on April 22, 2013, and it took a $1 billion pretax charge for a possible deal.  REUTERS/Richard Carson/Files  via NewsCred
The company logo of Halliburton oilfield services corporate offices is seen in Houston, Texas in this April 6, 2012, file photo. Halliburton Co is in talks to settle private claims against it in a trial to determine how blame should be shared for the 2010 Gulf of Mexico spill, the company said on April 22, 2013, and it took a $1 billion pretax charge for a possible deal. REUTERS/Richard Carson/Files via NewsCred

Halliburton CEO jumps on the “reverse oil price slump” bandwagon

Dave Lesar, CEO of Halliburton, has jumped on the bandwagon with other oil executives who claim they aren’t worried about the decrease in oil prices and actually expect them to increase next year.

According to Lesar, demand is slowly increasing, and the decrease in price is mostly due to an oversupply.  As reported by Bloomberg, Lesar also mentioned that it will “prove self-correcting, especially when it comes to U.S. shale production.”

Compared to conventional oil, shale wells die out quickly which requires companies to constantly depend on new drilling to maintain production.  This also means that shale is more responsive to price adjustments.  Lesar explained how lower oil price will discourage operators from new drilling, which will remove the glut in crude supplies.

While Halliburton is the world’s largest supplier of fracking services, perhaps the company has the best perspective on just what is powering the shale boom in the U.S.

During an interview at Halliburton’s headquarters in Houston Texas, Lesar also mentioned the supply-demand inequality is only temporary. Price will more than likely remain between $80 and $100 per barrel.

Yet, the decreasing oil prices may be harmful to Halliburton.  Because oil operators aren’t making as much profit, they won’t be investing in the equipment and hydraulic fracturing services that Halliburton supplies.

To read more about Halliburton and lower oil prices, click here.

22 comments

  1. It is an election year this is history repeating itself we are fine now and prices will increase in the near future

    • OPEC will meet later this month and decide — they want to keep production high to Low the oil price more or cut thier production to make price go up !!
      Technically in Middle East, cost of producing is $32/ bbl comparing to ablut $64/bbl in US !!
      So those OPEC wants to hurt US oil producers — they can keep producing n

    • Very election year and OPEC probably does want to hurt the US oil producers cuz we’ve hurt them just as much. Lol……..but De Vo don’t think they don’t have their money invested in these US oil companies. Think about it. You have 3 billion dollars and your own oil company, wouldn’t you invest into other oil companies that are your competition. So when you’re not getting as much money cuz they are taking it from you, the bottom line is you’re STILL getting money!

  2. Jordan Armani Ovalle time to buy us some stocks!!

  3. Jesus… Halliburton is THE war machine!

  4. Let’s hope he’s right.

  5. Time to buy some stocks!! Efren Moreno Selene Moreno Ana E. Tristan

  6. We need a “North American Energy Alliance”. More oil and gas for us, more jobs for us, lore stable prices for US!!!!! Screw OPEC!!! Screw everyone else!!! They don’t care about us!!!!

  7. Do buy stock in oil or hally b?

  8. So buy stock in oil or hally b? I’m just a dumb roughneck that drills overseas

  9. What’s the point of balls to the walls on jobs with no time in between if we are stocked with enough oil already.Maybe we need to slow down some,until we see a need to increase production if not just slow the jobs down some.I know it cost millions for a well to get it into production but what’s the point now.

  10. God forbid they make millions not billions

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