Jeff Miller highlighted that the oilfield services market is softer than previously expected due to trade uncertainties, geopolitical unrest, and accelerated OPEC+ production cuts.
North American operators are planning significant schedule gaps in H2 2025.
International markets, especially large NOCs, are reducing activity and discretionary spend.
Despite short-term softness, demand fundamentals for oil and gas remain strong, with expectations of market improvement as OPEC+ production is absorbed.
Impact of Infrastructure Challenges on Production and Mitigation Strategies
Natural gas processing issues in New Mexico caused well shut-ins and deferred oil production, but the impact on revenue was minimal as oil revenue is the primary driver.
Disruptions are timing issues rather than well performance problems, presenting opportunities for midstream and power projects aimed at improving flow assurance.
The company is advancing midstream and power generation projects, including compressor station expansions, to mitigate future infrastructure constraints and support stable production.
Dafinchi