Growth prospects for the top oil field services providers are improving heading into 2027, driven by international expansion in offshore developments, renewed exploration and efforts to boost production from existing assets.
Deepwater projects remain a bright spot with activity broadening across Latin America, Africa, the eastern Mediterranean and Asia, and final investment decisions expected to increase by more than 30pc in 2026, according to the world's biggest oil field services contractor SLB. A growing number of US shale producers that are gearing up for international expansion will also prove a catalyst for growth. Venezuela is now open for business and companies are racing to partner with oil and gas producers to help revive the nation's energy industry following the US capture of former president Nicolas Maduro earlier this year.
While the pace of the recovery in the Middle East remains uncertain given the ongoing conflict, the region is also shaping up to be a significant driver of growth once activity returns to normal. SLB forecasts that global oil field services market activity will expand in the mid-single digit range next year. That outlook assumes that Middle East activity holds steady in the second half of 2026 and that there is no escalation in the US-Iran conflict. But any resolution to the war could help unlock deferred demand and serve as a "powerful catalyst" for further growth in 2027, SLB says. "We see a very compelling outlook for 2027, with further upside as Middle East activity recovers," chief executive Olivier Le Peuch says.
Halliburton also remains upbeat on oil services demand following the supply shock caused by the war in the Middle East. "We are another three months into one of the largest energy disruptions in history," chief executive Jeff Miller says. "The work to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oil field services." Halliburton expects mid-single digit revenue growth for 2027, as well as operating margins of about 15pc, up by two percentage points from this year. "This outlook assumes a flat North America market and does not require any recovery in North America hydraulic fracturing," Miller adds. "To us, that recovery is purely upside."
Baker Hughes expects upstream spending to pick up going into 2027 after remaining flat this year. Supply disruptions across key producing regions have tightened inventories and boosted commodity prices, reinforcing the need for further investment in energy production and infrastructure. "While the need for longer-term investment remains clear, customers continue to take a disciplined approach to near-term spending," chief executive Lorenzo Simonelli says.
Back in business
The re-opening of Venezuela's energy market has also sparked interest from the sector, with firms scrambling to secure contracts. SLB expects its revenue from the South American country to more than double this year. The firm says that over time it will be able to reach or even surpass the $1bn in sales that Venezuela used to be worth for SLB. "We're well prepared, we're adding resource, adding equipment," Le Peuch says. Halliburton says it is "open for business" in Venezuela, where it is already fielding multiple enquiries from potential customers. "The work that we started with has been primarily [well] interventions," chief operating officer Shannon Slocum says, but the company sees "solid growth" ahead.
Baker Hughes has recently signed two strategic agreements in Venezuela. And Weatherford International says it is "furiously" taking on new staff in the country, supported by greater visibility with regard to contracting work. "We see potential for Venezuela to ramp up in 2027 to triple-digit revenues, with further increases in 2028," chief executive Girish Saligram says.
