HOUSTON, July 21 (UPI) -- Oil services company Baker Hughes said Tuesday it expected the weak market for crude oil to hurt all segments of business operations for the rest of the year.
Low crude oil prices are leaving energy companies with less capital to invest in exploration and production, a trend reflected in fewer rig deployments across most basins. Baker Hughes said revenue for the second quarter was $4 billion, down 33 percent year-on-year.
"Looking ahead to the second half of 2015, we expect these unfavorable market dynamics to persist," Martin Craighead, Baker Hughes chairman and chief executive officer, said in a statement.
The total number of rigs deployed in the onshore U.S. oil sector is down by more than 900 from last year.
Craighead's sentiments contrast to those of his peers at rival Schlumberger, which last week reported second quarter revenues dropped 25 percent year-on-year. Schlumberger CEO Paal Kibsgaard said the decline in North American exploration and production was "dramatic," but expected a "slow increase" through the rest of the year.
Baker Hughes said it expected the U.S. sector in particular to decline, a situation compounded by weak activity in overseas markets. Some markets, Craighead said, will see a modest recovery through the rest of the year, though that situation will be balanced by declines elsewhere.
Oil services company Halliburton led the week with a 26 percent decline in revenues to $5.9 billion, with North American revenues alone down 39 percent to $2.7 billion. David Lesar, the company's chief executive, said this is the roughest business climate for oil companies in recent memory.
Halliburton and Baker Hughes are working to join forces under a common banner.
"In regard to the pending merger, I continue to be pleased with the efforts of the teams working on completing regulatory filings and to develop plans for a successful integration," Craighead said.
