Halliburton CEO: U.S. oil is in the ‘early innings’ of a rebound—and a drilling ramp-up is coming

The U.S. oil sector has entered the “early innings” of a rebound with more growth to come, Halliburton chairman and CEO Jeff Miller said Tuesday, explaining that the Iran war is forcing countries to prioritize energy security by capturing more barrels both domestically and from other regions outside the Middle East.

Amid the pain of higher prices at the pump and in supply chains, there are bright spots for oilfield services companies like Halliburton, which conducts drilling and fracking work (hydraulic fracturing), as oil production ramps up around the world to make up for disruptions caused by the war and the standoff over the pivotal Strait of Hormuz, through which some 20% of global energy supplies flow.

Miller kicked off the first earnings season for the industry since the war began by arguing that the sector has fundamentally shifted—at least for a “few solid years”—with elevated prices and a push to rely less on the Middle East. This is the case even if a deal is reached soon to reopen the Strait of Hormuz choke point, Miller said.

“In North America, we already see the early signs of recovery. Outside of the Middle East, we expect our internation...