Halliburton to Profit from Shale Gas
Halliburton will increase its North American business, specifically fracking as the U.S. shale gas game persists, analysts at RBC Capital Markets argue. The large oilfield services supplier won’t receive much profit from its international operations, it will see productions in Iraq stabilizing and unconventional gas plays develop across the globe. All these moves will set up Halliburton for future profits.
While production companies have had an amazing year, for example Exxon Mobil and Chevron are both displaying double-digit percentage gains, oil and gas service providers have comparably failed. Halliburton and Schlumberger, the two biggest players, have decreased 18% and 12% for the year. Halliburton’s luck could begin to change soon with around 75% of its profits arriving from its North American operations, RBC’s equity analysts infers the company is positioned to benefit from the expansion of shale plays and hydraulic fracturing better known as fracking.
