SCHLUMBERGER LIMITED 
(MT Newswires) -- Schlumberger CEO Olivier Le Peuch notes that energy demand, particularly for oil, continues to grow in line with GDP, a consistent trend over the past 40 years. In the US, he plays down fears of recession, predicting a soft landing for the economy.
Peuch notes that oil companies in the US are increasingly merging, which should make the sector more efficient and improve access to the best sources of oil available. In this environment where companies are getting bigger and more powerful, Schlumberger is doing well by offering advanced digital tools and services tailored to these large, wealthy clients, who control vast areas of oil development. He is confident about the benefits this can bring to Schlumberger, pointing out that such mergers can improve collaboration between Schlumberger and these important industry clients.
On US shale production, Le Peuch believes that a repeat of the performance surprises seen previously is unlikely. However, he points to the continuous improvement in technology and efficiency, of which his company is a contributor, which is enabling customers to drill and extract oil more efficiently.
Le Peuch points out that Schlumberger's North American business accounts for around 20% of the company's sales, with a significant presence in the US onshore basins.
In the offshore segment, Le Peuch is confident that the recovery will continue, and points to further major investments planned with visibility beyond 2025.
Finally, in discussing the oil market and the impact of certain strategic moves such as Saudi Aramco's investment decisions, Le Peuch stresses the robustness of investments in the Middle East, noting intense activity in Saudi Arabia, particularly in the gas sector, which represents an opportunity for Schlumberger despite deferred or cancelled oil investments.
Le Peuch concludes his analysis by pointing out that OPEC Plus is likely to seek to maintain oil prices at around $80 a barrel or more, and anticipates that international demand will support prices in the medium term as demand increases relative to the supply available on the international market.
