A global oil shortage is on the horizon, the U.S. oil services provider said, after seven years of underinvestment after oil prices fell from their peak of $ 100 in 2014, Bloomberg reported.
“For the first time in a long time, we’ll see a buyer looking for a barrel of oil as opposed to a barrel of oil looking for a buyer,” warned Jeff Miller, CEO of Haliburton.
Miller added that the Houston-based service provider has seen crude explorers cut spending by about half of historical standards, and hired oilfield employees have been hit by rising costs. Meanwhile, oil producers have seized this opportunity to return oilfield profits to their shareholders instead of reinvesting in drilling.
It’s the latter problem that will inevitably lead to a tight oil market in the future, according to Miller.
But it’s more than just an investment that could create an oil shortage.
Just a week ago it was said that the oil companies were facing a labor shortage because the renewable energy industry looks rather attractive. According to a survey by Oilandgasjobsearch.com, more than half of all oil workers are looking to switch to renewables. About 43% of all workers in the oil and gas industry want to leave the industry completely within the next five years.
Halliburton was named last week in the Dow Jones Sustainability Index North America, which includes the 10% most sustainable companies in each industry based on ESG criteria. Based on these criteria, Halliburton, present in more than 70 countries, ranked in the 90e percentile among peers.
By Julianne Geiger For OilUSD
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