Russia's Long-Term Oil Growth at Risk From Service Firms’ Pullback
- World’s top oil-services providers won’t take on new work
- Hard-to-recover resources are key part of production plans
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The decision by the world’s largest providers of oil services to stop taking on new business in Russia won’t affect the nation’s current crude output, but is a threat to its longer-term production growth.
The top U.S. providers -- Baker Hughes Co., Halliburton Co. to Schlumberger Ltd. -- accounted for only 15% of Russia’s total oil-services segment last year, according to Moscow-based Vygon Consulting. The nation’s largest producers have demonstrated they can do their own well-drilling, exploration and production.