Optimism Gushes From Oil Services Industry (BHI, HAL)

It's a fine time to be an executive from an oil field services company. Baker Hughes (NYSE:BHI) reported strong earnings on Tuesday, beating earnings estimates by 12 cents per share and revenue by $240 million, and the numbers from rival Halliburton (NYSE:HAL) were solid, too. The results show that despite the retreat in oil prices over the last few weeks, demand for oil services by giants like Exxon Mobil (NYSE:XOM) and large independents like XTO Energy (NYSE:XTO) remain robust due to high commodity prices and an increase in unconventional drilling activity. (Read more in Peak Oil: What To Do When The Wells Run Dry.) Strong Second Quarter From Baker Hughes Baker Hughes net income for the second quarter of 2008 of $379.3 million, or $1.23 per diluted share, compared to $349.6 million, or $1.09 per diluted share, for the same... [read full story]