Halliburton says 'meaningful' rise in activity likely at $50 oil
By Anet Josline Pinto
(Reuters) - Halliburton Co, the world's No.2 oilfield services provider, said oil prices would have to stabilize at above $50 per barrel for producers to meaningfully increase oilfield activity.
The company posted a surprise quarterly profit on Wednesday by "relentlessly managing costs" and taking advantage of a rise in the number of rigs operating in North America.
Halliburton shares rose as much as 6 percent to $49.81 in morning trading, their highest in nearly 18 months.
Oil prices have nearly doubled since touching a low of $26.05 in February, prompting oil producers to put rigs back to work.
U.S. oil was trading at $51.80 at 1534 GMT (1134 EDT), the tenth day in a row it has traded above $50.
The U.S. onshore rig count rose by about a quarter in the three months ended September, according to a closely watched report from Baker Hughes Inc, which competes with Halliburton.
The rise in U.S. rig count is being driven by smaller operators, Halliburton Chief Executive Dave Lesar said on a post-earnings call.
"We saw a trend of less service-intensive wells, which is not activity typically worth chasing at today's pricing," he said. Continued...