05:42 AM EDT, 10/28/2024 (MT Newswires) -- Oil and gas drilling in the U.S. has stagnated due to market volatility and ongoing merger and acquisitions and commodity volatility globally has increased uncertainty in spending on upstream activities, National Bank of Canada said in a note over the weekend.

Cost efficiencies and intensity of service consumption are expected to drive returns for oilfield services companies, which should continue to support solid free cash and return of capital, the bank noted.

Oilfield services companies have seen revenue generally maintained to date. However, in Canada, infrastructure expansions including at LNG Canada and the Trans Mountain pipeline have supported improved opportunity and activity, National Bank said.

Overall, industry activity is expected to remain relatively static through the end of the year, before potentially improving in 2025, the bank said.