Baker Hughes Inc said on Tuesday it expects revenue from North America to rise in the current quarter from the first as oil producers drill more onshore wells, helping the oilfield service provider make up for a fall in demand in the Gulf of Mexico. Oil producers are spending more on lucrative shale fields to take advantage of oil prices stabilising at over $50 per barrel, while clamping down on expensive and time-consuming offshore projects.
"Activity growth in the US onshore well construction product lines is forecast to more than offset the seasonal decline in Canada and ongoing activity reductions in the Gulf of Mexico," Chief Financial Officer Kimberly Ross said in a post-earnings call. Larger rival Halliburton Co said on Monday oil producers were completing nearly as many wells as they were drilling, leading to revenue and margin growth in its completion and production unit.