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Oil-field equipment and labor are increasingly scarce as activity ramps up, leading to higher spending and higher costs for oil companies, services giant Halliburton said. Halliburton CEO Jeff Miller said the company is seeing “market tightness across all service segments” in North America, the company’s largest market. That is especially true in the crucial hydraulic fracturing market, where activity surged last month after weather and supplychain issues slowed some activity in the winter. “Halliburton's hydraulic fracturing fleet remains sold out, and the overall market appears all but sold out for the second half of the year,” Miller said on the company’s first-quarter earnings call Tuesday. Miller said his outlook for E&P spending for the rest of the year has “improved” and he now expects North America spending to increase by more than 35% in 2022, up from his previous estimate of 25% year-on-year growth. That is due to a combination of general inflation and increased customer activity that is driving equipment shortages. Miller pointed to a 14% rise in the US rig count quarter on quarter — up 62% on the year — and surging demand for frack crews. But he noted that 60% of today’s rig count sits with private companies, which are driving most of the growth in drilling activity.

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