Oil prices are still hovering around USD 122 to 127. That is why the major oil companies are still happy to invest in new oil wells and exploit the existing ones to the fullest, the Scandinavian bank, Nordea, has written in its Monday morning report.
Oil prices this high are good news to the offshore service companies. This is not least the case for Schlumberger which is among the largest and most electrically diversified. Furthermore, Schlumberger is the most globally oriented of the major offshore service companies and is among the leaders in the technological field; a position which Nordea considers to be a competitive advantage. A lot of the other service companies are specialised in American shale gas and the profitability of these companies are declining as the oil companies are turning away from shale gas towards oil to an increasing degree. This development strengthens Schlumberger’s position vis-à-vis its competitors.