Halliburton: Despite Lifting Of Moratorium, Gulf Of Mexico Economy Will Get WORSE

gulf state

Interesting commentary from Halliburton yesterday regarding the state of the Gulf of Mexico post-Deepwater and post-moratorium.

From the company’s conference call via SeekingAlpha:

Our Gulf of Mexico business declined sharply in the third quarter due to the impact of the drilling suspension. We were helped by our work on the Macondo relief wells. This work is now completed. In the fourth quarter, despite the lifting of the moratorium we anticipate even further deterioration of our Gulf of Mexico business. We continue to believe that Gulf activity will remain restrained as operators adjust to the new regulations.

Today, we’ve transferred approximately 400 of our personnel from the Gulf of Mexico to other regions in the U.S. and around the world. I’m pleased to also say that we’ve hired 6,000 — over 6,600 new employees in the U.S. since the beginning of the year, creating a significant number of new U.S. jobs.

Where are thing hot? This won’t surprise you:

Brazil continues to be a bright spot and to grow significantly with revenue increasing 20% from the prior year. We also saw strengthen the Andean countries and in addition, the outlook for increased opportunities in Venezuela is improving as our customer focuses on that countries productions challenges. However, the Mexico market continues to disappoint me from month-to-month.

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