Schlumberger Sees Oil Supply Deficit if Demand Growth Holds
Schlumberger Ltd, the world's No. 1 oilfield services provider, said it expects a "significant global supply deficit" of crude oil, assuming steady growth in demand, given the sharp decline in spending on exploration and production.
Energy companies have halved their E&P budgets since oil prices began their slump in June 2014, scaling back drilling to focus on the most prolific oil fields, a strategy called high-grading.
"As the opportunities for activity high-grading are exhausted, we should see a further acceleration in the global production decline," Schlumberger (SLB) Chief Executive Paal Kibsgaard said on an earnings conference call on Friday.
The company reported a better-than-expected adjusted profit for the second quarter on Thursday.
Reporting by Swetha Gopinath
