Schlumberger expects uptick in upstream activity

Upstream services company Schlumberger said July 23 that demand should warrant an increase in exploration and production, despite concerns about the pandemic.

The Houston-based organisation reported global revenue of $5.6bn, an 8% increase over the same period last year. International revenue of $4.5bn marked a 7% improvement sequentially, while the $1.1bn in revenue from North American operations represented an 11% increase from second quarter 2020.

Schlumberger CEO Olivier Le Peuch said there were industry projections that demand would continue to improve over the year as social restrictions ease and economic recovery accelerates. That comes despite the uncertainties surrounding the spread of the Delta variant of the novel coronavirus that causes COVID-19.

“Under this scenario, we believe the momentum of international activity growth that we experienced in the second quarter will continue as the cyclical recovery unfolds,” he said. “This view is supported by rig count trends, capital spending signals, and customer feedback.”

The Baker Hughes rig count shows North American upstream activity for July is about twice as high as it was this time last year. International activity, however, is actually slightly lower than this time last year.

Le Peuch said that, barring any economic reversals, he expects international revenue to increase by double-digits in the second half of the year, relative to year-ago levels.

“This translates into full-year 2021 international revenue growth, setting the stage for a strong baseline as we move into 2022 and beyond,” he said.