Halliburton CEO: U.S. oil sector in ‘early innings’ of rebound, drilling ramp-up anticipated

(SeaPRwire) –   The U.S. oil industry is in the “early innings” of a recovery with further expansion expected, stated Halliburton chairman and CEO Jeff Miller on Tuesday. He noted that the conflict involving Iran is compelling nations to focus on energy security by securing more oil production domestically and from regions beyond the Middle East.

Despite the strain of elevated fuel and supply chain costs, opportunities exist for oilfield services firms such as Halliburton, which performs drilling and hydraulic fracturing. Global oil output is increasing to compensate for shortfalls caused by the war and the impasse at the critical Strait of Hormuz, a passage for roughly 20% of the world’s energy supplies.

Initiating the industry’s first earnings period since the war started, Miller contended that the sector has undergone a fundamental change—lasting at least a “few solid years”—characterized by higher prices and a reduced dependence on Middle Eastern oil. He stated this shift holds true even if an agreement is soon struck to reopen the Strait of Hormuz bottleneck.

“In North America, we already see the early signs of recovery. Outside of the Middle East, we expect our international business to grow,” Miller said, pointing specifically to expansion in South America and Africa. “Equally important is the view that energy security is no longer [just] a talking point. That’s going to drive activity, and I think that change is not temporary.”

Indications that a ramp-up of U.S. oil supply is ahead

U.S. oil output reached a record peak exceeding 13.8 million barrels last year, but production leveled off and even dipped slightly during a worldwide crude surplus prior to the Iran conflict.

Commodity prices are projected to stay elevated—even if they retreat from present highs—through 2027 and potentially longer due to supply-chain disruptions, logistical issues, increased geopolitical and insurance risks, and the extended time required for Middle Eastern countries to repair infrastructure and resume oil and gas supplies.

Although U.S. drilling activity and production volumes have not yet increased, an early signal suggests they will: Smaller oil producers—often the first to act—are already securing more fracking equipment and extending drilling rig contracts.

“We’re in the early innings, and big public companies typically would come later in that cycle,” Miller said. “The early movers are the smaller companies, but that’s an important move because that early move by small operators is what removes [fleet] capacity from the market and creates [equipment] tightness.”

As 2026 began with expectations of an oil glut, many anticipated companies would reduce their contracted drilling rigs and fracking fleets. Instead, they have mostly maintained their commitments. Halliburton, which worried about having less work—more “white space” on its schedule—is now nearly fully booked through the second quarter, with the latter half of the year rapidly booking up, according to Halliburton chief operating officer Shannon Slocum.

“I am excited about North America. We see a recovery in progress,” Slocum said. “There are just really constructive conversations about getting back to work and capturing the value that’s available, not only now but for the future.”

The global impact of the Iran war

Since the war’s start, the global market has lost over 600 million barrels of oil cumulatively and is “trending towards 1 billion,” Miller stated.

“This represents several years of meaningful, incremental demand to replenish strategic stockpiles, in addition to what I believe will be ongoing structural demand growth,” Miller argued.

Halliburton pointed to significant growth opportunities in South America—in Argentina, Brazil, Suriname, and Guyana—as well as in Africa, including Namibia and Nigeria. Miller also voiced optimism for a recovery in Venezuela, which is reopening to greater international investment following the U.S. arrest of former leader Nicolás Maduro.

“We’re making progress in Venezuela. I spent some time there,” Miller said. “We’re having great discussions with customers. We’re talking about commercial terms. Our facilities there are in better shape than I expected. Clearly, that is an opportunity. There’s work to do without question. I think some of that work progresses faster than other parts, but we’re very, very pleased to be back in Venezuela and to have Venezuela back in business.”

Halliburton announced first-quarter net income of $461 million, an increase from $204 million a year earlier. The company emphasized that its growth exceeded losses from Middle East disruptions in March.

Halliburton’s operations were most severely affected in Iraq and Qatar, though activities in Saudi Arabia, Kuwait, and the United Arab Emirates were also impacted, Slocum said.

“Halliburton’s operational footprint is intact. Most of our business is working today,” Slocum said regarding the Middle East. “We’re in constant contact with our customers and are ready to support them when they are prepared to resume work.

“The initial activity you’ll likely see is probably just restarting wells,” Slocum said. “That would be assessed on a well-by-well basis, depending on their production and flow characteristics. The longer they remain shut in, the more complicated that becomes. But we’re prepared, and it will simply require time to resolve.”