Shares of energy companies fell after the world's largest oil-field services company raised concerns about a slowdown in U.S. drilling activity.
Schlumberger is pulling back from the U.S. and focusing on international projects, bracing for a prolonged slowdown in shale drilling. Schlumberger executives said the company is planning to cut its U.S. fracking "fleet" in half.
After a long decline, there has been some pickup in drilling activity in the U.S. in recent months, but activity remains far below its peak in the middle of the last decade. The number of rigs drilling for oil in the U.S. rose by 14 in the latest week to 673, according to oil-field services company Baker Hughes.
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(END) Dow Jones Newswires
January 17, 2020 16:24 ET (21:24 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.