‘Softer’ Natural Gas, Oil Sales Creating Challenges in Offsetting Trump Tariffs, Says NOV CEO

Exploration and production customers are treading cautiously in advancing their activity, “modestly” raising more natural gas rigs, but overall, the mood is uncertain, according to NOV Inc. CEO Clay Williams.

Williams, a straight shooter when it comes to explaining the natural gas and oil markets, recently held court with the executive team to discuss second quarter results and the near-term outlook. It’s mostly cloudy, he told investors.

“Macroeconomic uncertainty, the rapid unwinding of OPEC-plus production quotas, and conflict in the Middle East have made customers more cautious,” he said. “In North America, exploration and production companies moved decisively to curtail short-cycle activity. The U.S. oil-directed rig count declined roughly 9% since March, and modest gas rig additions could not fully offset the drop.”