The U.S. oil sector is positioned for a significant rebound, Halliburton CEO Jeff Miller announced Tuesday, attributing the shift to heightened global energy security concerns driven by geopolitical tensions, including the Iran war. Miller emphasized that the industry is in the 'early innings' of recovery, with increased drilling and production expected both domestically and internationally.
North America Leads the Recovery
Miller highlighted early signs of recovery in North America, where smaller oil producers are already ramping up operations. 'The early movers are the smaller companies,' he noted, explaining that these firms are hiring fracking fleets and extending rig contracts, tightening equipment availability and signaling a broader industry resurgence.
'We’re in the early innings, and big public companies typically would come later in that cycle,' Miller said.
Global Energy Security Drives Demand
The Iran war has disrupted global oil supplies, with an estimated loss of over 600 million barrels globally. This has elevated energy security as a priority for nations, prompting increased investment in non-Middle Eastern oil production. Halliburton anticipates growth in South America—citing Argentina, Brazil, Suriname, and Guyana—and Africa, including Namibia and Nigeria.
Commodity prices are expected to remain elevated through 2027 due to supply chain shocks, logistical challenges, and geopolitical risks. Miller argued that these factors will sustain demand for U.S. oil production, even if Middle Eastern supplies recover.
Halliburton’s Optimistic Outlook
Halliburton’s near-term outlook is strong, with operations virtually fully booked through the second quarter and demand quickly filling the second half of the year. 'We see a recovery in progress,' said Halliburton COO Shannon Slocum, underscoring the company’s confidence in the sector’s resurgence.