Nabors Stock Falls as Fracking Comes Under Closer Scrutiny

Jacob Harper |

Nabors Industries (NBR), the country’s largest land-oil rig contractor, tumbled after they reported a soft second quarter. Nabors blamed bad weather and stiff competition for the earnings shortfall. Nabors first hinted at troubling times in January, when they announced that they faced a near total suspension of pressure pumping work, a hydraulic fracturing method to extract oil and gas from shale rock.

Nabors was an early adopter of the controversial practice of hydraulic fracturing, commonly known as “fracking.” Since Nabors purchased fracking specialists Superior in 2010 for $900 million cash, fracking has becomes an increasingly common gas extraction tactic for the company, and the industry in general. Virginian energy and environmental consulting firm ICF Consulting projects that extraction methods like fracking will account for 64 percent of natural gas production by 2020.

However, larger companies like Halliburton Co. (HAL), Schlumberger Ltd. (SLB), and Baker Hughes Inc. (BHI) have edged in on Nabors fracking business. This competition from major players is coupled with increasing public scrutiny concerning the environmental impact and dangerous conditions associatd with fracking.

In Nov. 2012 Nabors were targeted in an expose by Bloomberg that highlighted a carcinogenic chemical they use in their fracking process. On July 7 HBO released Josh Fox' “Gasland Part II,” a sequel documentary to "Gasland" that further explores the environmental and social impact of fracking. The following day, five rig workers in West Virginia were killed when a natural gas well exploded during fracking.

Nabors is down .37 percent to $16 a share. They’re up 10.63 percent on the year.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
BHI Baker Hughes Incorporated 52.15 -0.20 -0.38 3,056,113
HAL Halliburton Company 48.24 -0.19 -0.39 7,399,113
NBR Nabors Industries Ltd. 13.04 -0.01 -0.08 4,906,107
SLB Schlumberger N.V. 80.31 -0.16 -0.20 5,617,438


Emerging Growth

Sack Lunch Productions Inc

Sack Lunch Productions Inc is an entertainment company. The Company, through its subsidiaries, is engaged in event management, production service, film production and distribution services.

Private Markets

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…


Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.