SOURCE: The Bedford Report

The Bedford Report

October 25, 2010 12:05 ET

North American Onshore Drilling Boosts Oil Service Profits as Shale Market Expands

The Bedford Report Provides Analyst Research on Halliburton & Weatherford

NEW YORK, NY--(Marketwire - October 25, 2010) -  With offshore drilling halted in the Gulf of Mexico over the summer, companies in the Oil & Gas Equipment & Services Industry relied on vigorous North American onshore drilling for natural shale gas to buoy third quarter earnings. New technology has made it easier for oil and gas companies to tap vast deposits of underground shale, and it is a big driver for companies such as Schlumberger and Baker Hughes due to the increasing demand for trained crews and equipment. The increase in onshore drilling, combined with a drop in energy consumption during the recession, has kept natural gas prices low, yet drilling continues as companies compete for control of the expanding shale market. The Bedford Report examines the outlook for companies in the Oil & Gas Equipment & Services Industry and provides research reports on Halliburton Co. (NYSE: HAL) and Weatherford International, Ltd. (NYSE: WFT). Access to the full company reports can be found at:

Further increases in demand for natural gas will be necessary to sustain the current level of North American onshore gas drilling. When Schlumberger reported earnings last Friday, the company's CEO Andrew Gould said the shift to liquids-rich shale fields was offsetting the decline in other drilling, however that shift isn't profitable in the long term if there is little money to be made on the gas that accompanied the liquids. Halliburton's Chief Executive David Lesar echoed these views, claiming that growth in the U.S. onshore oil and gas market would only be sustainable for another year.

The Bedford Report releases regular market updates on the Oil & Gas Equipment & Services Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at  and get exclusive access to our numerous analyst reports and industry newsletters.

While future demand concerns are inevitable, shale drilling will likely continue to act as a key revenue driver while companies digest new offshore drilling safety regulations laid down by the Obama administration. Earlier this month The US Government lifted its moratorium on deepwater drilling in the Gulf of Mexico which had been in place since the tragic Deepwater Horizon disaster in April. While this is a first step, any immediate ramifications are likely limited as rig operators must still win regulatory approval to return to work in the region again. The new rules will require companies to get independent certification of the safety of their rig operations. The companies must also have plans in place for recognizing potential hazards to help prevent human errors in all phases of activity. Likely the most costly of the new rules is one requiring rig owners to be responsible for paying for audits, which will oversee the dependency of blowout preventers.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

Contact Information