The company’s outlook for the rest of the year remains strong, driven by a broad recovery in oil and gas activity worldwide. Schlumberger indicated that it would not have any spare equipment capacity by the end of 2018, allowing it to improve its pricing and commercial terms for the product line. Schlumberger’s North American business grew by 11% sequentially and 43% year-over-year, driven by a growing rig count and higher service intensity. On the demand side, while oil prices have risen, demand is not expected to decline, with reporting agencies holding on to their forecasts for oil demand for this year and next year. This could play to Schlumberger’s advantage, given the company’s wide global presence, its emphasis on performance-based contracts and integrated projects.

Source: Forbes July 23, 2018 16:33 UTC