• Logistical constraints limiting growth of US shale oil industry, say services CEOs

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      Patrick Lavery

      Combustion Industry News Editor

The chief executives of Schlumberger and Halliburton have told an energy conference that logistical challenges are beginning to slow the growth of the US shale oil industry. Labour and equipment costs and a lack of pipeline capacity are three of the logistical challenges, and the difficulty in disposing of water and gas byproducts two more. The US shale oil industry has boomed since 2016, but in recent months the number of active rigs has been steady. Schlumberger, Halliburton and the UK’s Weir Group (which supplies pumps to the US shale industry) have all issued warnings about earnings or reduced activity as a result, and they will be looking for a new upturn in activity. Given the nature of the logistical constraints, however – particularly a lack of pipeline capacity – an upturn may be some time coming.