In the United States, oil and natural gas production in 2023 remained high, despite an overall declining rig count.

Why did this happen? Because of an industry focus on efficiency, higher service intensity and high-quality acreage, according to Halliburton Company. 

Since the early 2020s, global imbalances between oil and natural gas supply and demand and the resulting volatility in oil and natural gas prices (including as a result of the Covid-19 pandemic) have resulted in dramatic fluctuations in the oil and natural gas markets. 

Rig

Volatility continued in 2023 as markets were affected by central bank rate hikes, macroeconomic uncertainty, non-OPEC supply growth and renewed geopolitical unrest in the Middle East. 

On February 2, 2024, 619 rigs were operating in the United States, which is 140 fewer compared to January 27, 2023, according to Baker Hughes data.

Overall, lower commodity prices and the number of onshore rigs in the United States contributed to weakness in the North American energy products and services market, particularly in the natural gas basins during the second half of 2023. 

In contrast, the number of international rigs showed steady growth in 2023 driven largely by national oil companies in the Middle East/Asia and Africa.

Logistics

Globally, Halliburton continues to be impacted by increasing supply chain lead times for the supply of selected raw materials. 

The company monitors market trends and works to mitigate cost impacts through economies of scale in global procurement, technology modifications and efficient sourcing practices. 

Halliburton Company is an American multinational company operating in the oil and gas services sector. 

Founded in 1919, the company is headquartered in Houston, Texas, and is a leading provider of services and products for the exploration, development and production of energy resources.