The oil services sector, along with exchange traded funds, could begin to pick up, with Halliburton (NYSE: HAL) expecting a more bullish outlook in the oversupplied North American hydraulic fracturing market.
Dave Lesar, chief executive officer of Halliburton, believes the two-year glut in the so-called fracking equipment market is easing “much faster” than expected, reports David Wethe for Bloomberg.
“I’m starting to feel the momentum swing,” Lesar said in the article. “I am more excited about North America now than I have been since late 2011.”
Specifically, Lesar points to expanding operations in the oil-rich Permian Basin of Texas.
“The sentiment was more bullish,” Scott Gruber, an analyst at Sanford C. Bernstein & Co., said in the article. “They don’t talk about pricing, but you can kind of infer they’re getting bullish on pricing.”
According to Barclays Plc., producers are projected to raise capital spending in the U.S. and Canada by 7% this year after two-years of below 5% growth.