One company turns its back on the U.S. and Canada
Of the equipment and services triumvirate — which also includes Halliburton Company (NYSE:HAL) — Schlumberger Limited. (NYSE:SLB) has been the most keen on focusing its business on the international marketplace. Granted, over the past few years, North America has gained market share in the company’s overall revenue generation, but it still makes up only 30.8% of the mix. Compare that with Halliburton Company (NYSE:HAL), which brought in 56% of sales from the region in 2012 and Baker Hughes’ most recent breakdown of 49.7%.
Compared with the same quarter last year, the Middle East and Asia have been leading the pack for the largest equipment and services companies in the business. Revenue in this region grew 21% despite seasonal weather-related delays in South Pacific countries such as the Philippines and the Australasian region. Compare that with our home market, where there’s nothing more to write about than the activity in the Gulf of Mexico, which grew 26% year over year for Schlumberger Limited. (NYSE:SLB).
When could North America lend a helping hand?
For Schlumberger Limited. (NYSE:SLB)’s competition, a healthy North American market is vital to future success. Thankfully for both Baker Hughes Incorporated (NYSE:BHI) and Halliburton Company (NYSE:HAL), the turnaround might be upon them. In its release, Baker Hughes Incorporated (NYSE:BHI) cited a 3% drop in the land rig count from last quarter but said it expects an increase to close out 2013. Evidence lies in the fact that natural gas-focused rigs actually grew last week, something that hasn’t happened in quite some time.
A growing natural gas rig count is especially sweet news for Halliburton Company (NYSE:HAL), which is widely known as the industry’s hydraulic fracturing specialist. While it lost market share internationally in 2012, the company is still heavily dependent on the success of the natural gas market domestically. Now, the development in natural gas in North America is by no means in question, but the timing is still up in the air as to when it will pick back up. All investors in the company are hoping that now is the time.
Get ready for Halliburton’s Monday earnings release
Domestic oil and gas service companies have taken a hit in the recent past because of a slowdown in the natural gas drilling boom of the last couple of years. As this market looks to rebound, investors would be wise to consider Halliburton, one of the top companies in the business and one of those most in tune with the domestic market.
The article 3 Companies That Need North America to Cooperate originally appeared on Fool.com and is written by Taylor Muckerman.
Taylor Muckerman owns shares of Halliburton. The Motley Fool recommends Halliburton.
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