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Oil producers order more equipment and line rigs for the end of the year, according to industry leaders, indicating that international activity resumes.
Schlumberger
Ltd.
and
Baker Hughes
owned in part by
General Electric
Co.
These customers are going forward with big plans and are even gearing up to increase exploration for the future.
"The international recovery has finally begun," said Schlumberger's CEO.
Paal Kibsgaard
said during the company's revenue call with badysts. "The backlog of integrated drilling projects is the largest we have ever seen."
Over the past year, the global oil business has split into two separate stories. The United States remained a good point for the oil industry, as frackers withstood the drop in oil prices following an accident in 2014. Earlier this month, US oil production reached first time 11 million barrels a day. Outside the United States, major oil conglomerates and domestic oil companies have reduced production and stopped investing in expensive offshore projects
The price of oil has peaked at 3 and a half years early d & # 39; year. barrel. Prices have fallen in recent weeks after an OPEC meeting in June, during which the cartel and Russia agreed to increase their production up to one million barrels a day, but have remained above $ 70 since April.
Lorenzo Simonelli
Rising commodity prices create a good climate for new investments in oil production and exploration.
"People are starting to firm up their plans for next year and you are starting to know more about the increases and the plans." Simonelli said.
The international installation account is flat up here this year, but this may start to change. Kibsgaard said the company was mobilizing 90 platforms outside the United States jointly with third-party drillers, which he termed "unprecedented." Baker Hughes said his largest number of oil orders was recorded. field equipment since 2015.
The rise in activity occurs as the supply grows due to the instability of some of the world's largest oil producers and geopolitical concerns. There have been major power outages in Venezuela and Libya, and new sanctions in the United States pose a risk to Iran's supply.
Amin Nbader,
The managing director of Saudi Arabian Oil Co., known as Saudi Aramco, has called on the industry to increase its drilling expenses, claiming that the industry has lost $ 1 trillion in investments during the downturn economic. The Saudi authorities are privately fearful that the lack of investment could lead to higher prices leading to a long-term decline in demand.
Up to now, the renewed activity is mainly focused on onshore projects, cheaper and faster to achieve. But, according to Mr. Kibsgaard, offshore drilling companies have begun ordering equipment in anticipation of a resumption of shallow water projects. Deepwater projects, which are extremely expensive, are yet to come, but will be needed to meet future demand.
On Friday morning, Schlumberger achieved a turnover of $ 8.3 billion, up 11% over the same period last year. Revenues from its international business declined 1.4% from the previous year to $ 5 billion, but increased 4% since the first quarter of 2018. Baker Hughes reported revenue of 5 , $ 5 billion, up 2% since last year. The company's international business figure was $ 1.7 billion, up 8% from the first quarter.
Writing to Christopher M. Matthews at [email protected]
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