In a challenging first quarter of 2025, the world's top three oilfield service companies—SLB (formerly Schlumberger), BakerHughes, and Halliburton—are facing a double blow from falling oil prices and the resumption of tariffs on key steel imports from the United States, disrupting supply chains and casting a shadow on profit prospects for this year Shadow.
Headquartered in Houston, SLB, BakerHughes and Halliburton, the financial statements were less than expected due to macroeconomic pressures and geopolitical uncertainty. The three companies, important service providers for the oil and gas industries and key drivers of freight transport for heavy steel and industrial projects, are now facing increased operational challenges.
SLB CEO Olivier Le Peuch said 2025 was “off to a low start” with a decline in exploration and production spending. Revenue in the first quarter fell 3% year-on-year to $85 billion, driven by lower drilling activity in Mexico, a slow start to the year in Saudi Arabia and a sharp decline in Russian business. LePauch warned that global upstream investment will fall even lower than previously forecast amid commodity price volatility and trade policy changes. LePauch noted that “the industry is facing global economic uncertainty brought on by the supply imbalance and the recent tariff announcement, and indicated that customers may slow activity and non-essential spending until market conditions stabilize.”
Baker Hughes estimates that if current tariff levels persist, it will face a profit impact of $1 billion to $2 billion throughout the year. The company singled out imports from China, Italy and other key equipment, steel and aluminum supplier countries as particularly vulnerable.
“We continue to keep a close eye on the changing situation and are taking proactive steps to mitigate the potential impact of changes in trade policy (especially tariff rates). Despite Q1 revenue flat at $64bn, orders fell by 1% year-on-year and 14% down on the previous quarter, demonstrating the stress of trade frictions.” BakerHughes Chairman and CEO Lorenzo Simonelli said. But the company saw a bright light in the industrial and energy technology sectors, with orders for the division reaching $32 billion in the first quarter, up 9% year-on-year. Simonelli highlights the expansion of LNG capacity and AI-driven data center energy needs in the Gulf of Mexico that will drive future growth.
Halliburton, meanwhile, relies on its diversified supply chain to cushion the impact of tariffs, and CFO Eric Carre estimates second-quarter earnings per share will be reduced by 2 to 3 cents due to tariffs, but stressed that companies have flexibility to deal with procurement challenges and need a clearer and more stable tariff structure so they really understand what leverage can be triggered.
Halliburton's North American revenue fell 12 percent to $22 billion and international revenue declined 2 percent to $32 billion. While overseas offshore operations are expected to help, international market risks continue to rise this year. While our overall international outlook has not changed significantly, it is reasonable to infer that today's risks are greater than three months ago.” CEO Jeff Miller said.
For the global logistics industry, these developments highlight how changes in trade policy are impacting energy supply chains, from steel shipment delays to equipment import restrictions, affecting more than just oil fields, waves and ports, carriers and freight agents around the world. As the three giants realign their supply chain and spending plans, logistics operators must remain flexible, proactive and collaborative to cope with an increasingly volatile global trading environment.
Source: https://www.joc.com/article/us-tariffs-dampen-2025-outlook-from-oil-field-service-majors-5995764
