Top oilfield services company Schlumberger on Sept. 7 said North American oil and gas activity was growing at a faster pace than expected, as customers have largely shrugged off concerns about a looming recession.
Oil and gas producer customers were more concerned with securing equipment and operational performance than a sudden drop in oil prices or potential recession, Schlumberger CEO Olivier Le Peuch said at a conference on Sept. 7.
Le Peuch said international oil activity also has the potential to grow at a faster rate than North American activity going forward.
Shares of Schlumberger were down about 1.6% midday to $36.73 each, as oil futures sank about 4%. Schlumberger's stock is up about 23% year-to-date.
Oil and gas prices have jumped sharply this year as western sanctions following Russia's invasion of Ukraine have disrupted energy supplies and flows. Brent crude was trading around $90 a barrel on the morning of Sept. 7, well off levels seen in recent months, but about 25% higher than a year ago.
"There is huge momentum," Le Peuch said at the Barclays CEO Energy-Power Conference in New York, adding that current investment rates and consistency are "something I've not seen for quite some time."
As oil prices have climbed and activity has picked up, Schlumberger said it is seeing its best margins in almost a decade.
"I think investors should expect that the margin expansion is here to continue," he said.
Recommended Reading
Chord Drills First 4-Mile Bakken Well, Eyes Non-Op Marcellus Sale
2025-02-28 - Chord Energy drilled and completed its first 4-mile Bakken well and plans to drill more this year. Chord is also considering a sale of non-op Marcellus interests in northeast Pennsylvania.
How Elk Range Took the Leap to Buy Oxy’s $905MM D-J Heirloom
2025-04-07 - Elk Range Royalties closed on a $905 million purchase of Occidental’s assets in the Denver-Julesburg Basin in March— a once-in-a-lifetime purchase, CEO Charlie Shufeldt told Hart Energy.
Occidental to Up Drilling in Permian Secondary Benches in ‘25
2025-02-20 - Occidental Petroleum is exploring upside in the Permian’s secondary benches, including deeper Delaware Wolfcamp zones and the Barnett Shale in the Midland Basin.
Improving Gas Macro Heightens M&A Interest in Haynesville, Midcon
2025-03-24 - Buyer interest for Haynesville gas inventory is strong, according to Jefferies and Stephens M&A experts. But with little running room left in the Haynesville, buyers are searching other gassy basins.
Oklahoma E&P Canvas Energy Explores Midcon Sale, Sources Say
2025-04-04 - Canvas Energy, formerly Chaparral Energy, holds 223,000 net acres in the Anadarko Basin, where M&A has been gathering momentum.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.