Light at the end of the tunnel for oil-field services companies
Firms are clawing back some of their losses, creating tension with producers still relying on cut-rate drilling costs
For America's oilfield-services companies that have been clobbered by the industry's spending cuts, the recent upticks in prices and onshore US drilling activity have come as sweet relief. The sector has almost certainly hit bottom. Prices, although still weak, are well off their lows from the start of the year. Optimism is creeping back into the oil patch and some producers are even starting to loosen the reins on their spending. The clearest sign of this for service companies has been the nearly 30% run-up in the rig count from May to August. Many companies, especially around the Permian basin, plan to keep adding rigs in the second half of the year. Even more want to start bringing on lin
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