The oil and gas industry’s promise to up production hurt by supply chain problems

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Despite high oil prices, supply chain issues spell trouble for production plans

Elizabeth Conley, Houston Chronicle / Staff photographer

The EIA analysis is in line with what oil field services companies like Houston-based Halliburton have been reporting. In an earnings call last week Halliburton’s CEO Jeff Miller said the equipment market was nearly “sold-out” partially due to supply chain issues, although he said he was optimistic that things are getting better.

As the industry works to increase production, it faces difficulty finding workers after massive layoffs during the peak of the COVID-19 pandemic. Labor shortages paired with supply chain issues are translating into fewer drilled wells, the EIA report said.

 

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