HOUSTON, July 27 (Reuters) - Oilfield service providers on Thursday signaled a recovery in rig count, an indicator of future production, later this year, citing an uptick in oil and gas prices.
However, with U.S. crude prices climbing back to $80 per barrel, service companies are betting on a recovery in demand.
Lindsay said he expects rig count activity to hit a bottom in the quarter ending September, and a recovery in the following quarter.
Rival Patterson-UTI Energy (PTEN.O) also forecast a rise in rig count and fracking activity later this and next.
"We believe the industry rig count is near a bottom," said Andy Hendricks, CEO of Patterson-UTI Energy, adding that the company expects additional rig releases in the next few weeks before drilling activity recovers later in the year.
Persons:
John Lindsay, Lindsay, Payne, Patterson, Andy Hendricks, Hendricks, Arathy Somasekhar, Jonathan Oatis, Matthew Lewis
Organizations:
UTI Energy, Thomson
Locations:
U.S, Houston