July 4, 2017 / 6:55 AM / in 23 days

UK's Hunting says U.S. shale boom helping business

2 Min Read

(Reuters) - Oilfield services company Hunting Plc (HTG.L) said on Tuesday its revenue for the first half was boosted by onshore drilling in the United States, particularly in shale oil regions such as the Permian basin in West Texas.

The company, which provides drilling and infrastructure support to oil explorers, said it had recommissioned a previously mothballed facility and added personnel to its perforating systems unit to meet the increased demand.

Hunting, however, said U.S. offshore and international drilling markets remained weak due to low oil prices, and that drilling budgets continued to be reduced by oil companies, hurting the prospects of oil services firms.

U.S. oil drillers cut two rigs last week, the first time since January, to 756 and the pace of additions slowed this quarter due to declines in crude prices despite an OPEC-led effort to cut production and end a multi-year supply glut.

Shale oil producers in the United States, however, plan to keep drilling new wells despite a drop in crude prices CLc1 this month but expect to revisit spending should pricing remain below $45 a barrel for several months.

Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Gopakumar Warrier

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