Schlumberger has become the biggest oil-service industry player yet to abandon frack work in North America, a sign that activity in the U.S. shale patch may never revisit previous highs.
The provider of drilling and oil-production equipment agreed to sell its U.S. and Canadian fracking business to smaller rival Liberty Oilfield Services Inc. After similar exits over the past few years by Baker Hughes Co. and Weatherford International Plc, Halliburton Co. is now the sole global provider of well completions for shale, and even Halliburton has said it's looking overseas for better growth.
For Schlumberger, the world's top oilfield-services company, the deal is a massive reversal from its North American buying binge over the past few years, which added frack-sand mines, artificial-lift technology and Weatherford's frack fleet. For Liberty, meanwhile, buying Schlumberger's OneStim unit in exchange of a 37% stake in the company means the oilfield contractor will more than double the size of its frack fleet in a market that has sidelined three-fourths U.S. crews this year.