Declining prices spook oilfield equipment makers

Oilfield equipment manufacturers in China are a worried lot these days. They fear the continuing fall in crude oil prices, which started last year, may make things even more difficult this year.

"The crude price plunge in 2015 has affected the oilfield services sector. Another tough year looms as things aren't getting any better," said Li Yan, a crude oil analyst at Shandong Longzhong Information Technology Co.

"Oilfield services industry's profits depend highly on the crude exploration sector," Li said. "Sadly, nearly all the oil producers, including giants such as Royal Dutch Shell Plc, have cut investment in upstream exploration because of increasing deficits caused by the low crude prices."