Oil Servicers Look to Middle East for Growth on Shale Slowdown

The world’s largest oilfield-service providers are looking to production increases in the Middle East to help offset a slowdown in US shale.

That’s one of the big takeaways from comments this week made by executives at Helmerich & Payne Inc. and Patterson-UTI Energy Inc., who pointed to opportunities in countries such as Saudi Arabia to help drive growth. The comments echoed outlooks from some of the biggest names in the industry, including SLB and Weatherford International Plc, who expect the Middle East to lead a rebound in activity for the end of 2026 through 2027.

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Operators in the US shale patch, once the world’s leader in oil production growth, are now closely watching commodity markets as they hover near the level that makes drilling profitable for producers. If crude prices drop into the low $50-per-barrel range for several months, companies are expected to make more drastic cuts to drilling and fracking in the US.

Global oil prices have steadily declined in the past several months on expectations of a glut. West Texas Intermediate, the US benchmark, has fallen more than 10% over the past year, trading around $63 a barrel on Thursday.

But some producers in the Middle East can better sustain the lower crude prices, which underscores why the oilfield-services companies are looking there for growth. Projects to frack for natural gas have also emerged in the region, as governments face rising electricity demand, industrial expansion and petrochemical build-outs.

Here’s a look at recent comments from oilfield-services companies:

Helmerich & Payne

One of the top drilling-rig contractors on the US shale patch, the company said the reactivation of its suspended rigs in Saudi Arabia is underway.
On an earnings call Thursday, incoming Chief Executive Officer Trey Adams said the company remains hopeful for further opportunities in the region

Patterson-UTI Energy

The company opened a drill bit manufacturing facility in Saudi Arabia that started operations in December, CEO Andy Hendricks said in a call discussing fourth-quarter results Thursday.

SLB

A rebound in oil production driven by OPEC+ policy and gas becoming a priority to meet regional demand will lead to a “favorable” next few years, SLB CEO Olivier Le Peuch said during an earnings call on Jan. 23.
“The Middle East market will be characterized by rebounds in drilling and workover activity in Saudi Arabia, with rig counts potentially returning to early 2025 levels by the end of 2026, and this has already begun,” Le Peuch said.

Weatherford

Weatherford International, which gets a lot of its business from the Middle East/North Africa region, sees a “strong opportunity” in Saudi Arabia and momentum in countries including the United Arab Emirates, Kuwait and Oman, CEO Girish Saligram said during an earnings call Wednesday.

Halliburton

Halliburton Co., the world’s biggest provider of fracking services, took a more cautious view, with the company estimating activity in the region being flat or down slightly in 2026, CEO Jeff Miller said during an earnings call on Jan. 21.
“I’m well aware of the activity growth in Saudi Arabia, but taking a bit more conservative view of the timing and pacing of that coming back,” Miller said. “It likely will, but it’s less clear to me how impactful and how early that would be.”