NEW YORK (TheStreet) -- Shares of Halliburton Co. (HAL) are down 5.12% to $51.12 on very heavy trading volume as falling oil prices may be detrimental to the oilfield services company because oil producers would have less cash for the equipment and hydraulic fracturing services the company provides, according to Bloomberg.
Still, company CEO Dave Lesar is joining the chorus of oil executives who say they aren't worried about falling oil prices, and expect them to climb next year, Bloomberg reports.
"Despite what people are thinking, demand is creeping up, albeit at a lower rate than it has been," he said. The downward pressure on prices is mostly due to an oversupply, and Lesar said that will quickly prove self-correcting, especially when it comes to U.S. shale production.
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Unlike with conventional oil, shale wells peter out quickly and companies depend on constant new drilling to maintain production levels. This also makes shale more responsive to price movements. Lower prices will discourage new drilling, quickly removing the glut in crude supplies, Lesar told Bloomberg.
As the the world's biggest supplier of fracking services, Halliburton has perhaps the best perspective on what's driving the U.S. shale boom. In an interview at the company's Houston headquarters, Lesar also said the supply-demand imbalance is temporary, and that prices are likely to remain between $80 and $100 a barrel.