Schlumberger “CEO Paal Kibsgaard expressed serious concerns about the near-term future when the company released its third quarter financial results on October 15. Schlumberger works in every market in the world in which it is permitted to operate. Therefore, “Big Blue” enjoyed some continuation of activity in various markets compared to North America where, when oil prices declined, operators demonstrated their ability to begin closing the spending taps almost immediately,” reports

Oilfield service suppliers that provide equipment like drilling rigs will be among those hardest hit. Consequently, the oil services-sector ETFs may likely be among the worst performers in energy-sector during a low oil environment.

There are some positive catalysts, though. While there are still concerns that Halliburton (NYSE: HAL) will not be able to complete its acquisition of rival Baker Hughes (NYSE: BHI), August’s deal-making in the oil services space predictably touched-off speculation that more oil services firms are ripe takeover candidates. [More M&A for Oil Services ETFs]

“Even if oil prices were to rise tomorrow, the massive spending cuts worldwide would take time to reverse themselves, he noted. It will be a matter of confidence, not just price,” notes

Market Vectors Oil Services ETF