The downward slide in crude oil prices is expected to have a proportional impact on oil-directed drilling in the United States. On the other hand, the Henry Hub gas price has remained under $4/Mcf since 2010, so gas-directed drilling is expected to remain steady during 2015. With Saudi Arabia abandoning its traditional role of a swing producer to lift up prices, international oil companies and U.S. shale operators have taken on that role by announcing budget reductions and activity slowdowns. The full impact of the budget cuts, as much as 40% in some cases, will be realized in first-half 2015.

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