Services Are Yet Another Snag for Oil and Gas

Scarcity sometimes begets more scarcity.

The latest source of shortage comes from the oil field service industry, which has less equipment and fewer employees after years of austerity. Meanwhile, oil and gas prices are near multiyear highs. All three major servicers— Halliburton , Schlumberger and Baker Hughes —said in their earnings calls this week that they are negotiating price hikes with their customers as a result. Higher labor costs, stretched supply chains and inflation are feeding into those price increases, too.

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