Halliburton takes $2.2B charge to earnings as shale boom slows; CEO says shale has peaked

PERMIAN BASIN (KOSA) -- Oilfield services firm Halliburton Co. disclosed this week it had a $2.2 billion charge to earnings in 2019 as shale activity continued to weaken across the industry.

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The pre-tax write-down was mostly associated with pressure pumping and legacy drilling equipment, in addition to employee severance packages and other costs.

Halliburton CEO Jeff Miller says he believes shale oil fracking has peaked and is in a period of sustained contraction.

The company has cut thousands of jobs in the U.S. and recently scrapped unwanted fracking equipment to cut spending.

Schlumberger, the largest oilfield service company in the world, reported a $10.1 billion loss in 2019.

Meanwhile, WTI Crude Oil prices dropped dramatically again today, falling $1.64 to close at $56.74 a barrel.