NEW YORK: Schlumberger Ltd, the world’s No.1 oil field services provider, said there were early signs of recovery in industry activity in most parts of the world, as oil prices stabilize after a two-year slump.
The company, which derives more than three-fourths of its revenue from international operations, had called the bottom of the recent downturn in the second quarter.
“The only place where we don’t see any signs of recovery at this stage is in Asia,” CEO Paal Kibsgaard said on a post-earnings call. The company does not see “signs of any imminent activity recovery” in China, Indonesia and the rest of Southeast Asia.
Schlumberger said it expects “solid growth” in the Middle East and Russia in 2017 on a full-year basis, adding there was an uptick in investment and activity in Latin America, Europe and Africa.
However, the rise in Latin America, Europe and Africa is unlikely to be significant on a full-year basis, the company said.
Schlumberger reported a quarterly profit that topped analysts’ average estimate on Thursday, helped by cost cuts and a ramp up in drilling activity in North America.
With global crude oil prices up nearly 38 percent this year, producers are putting rigs back to work, particularly in North America.
But, Schlumberger said there were no “material movements” on pricing during the quarter. “It is critical for us to recover the large pricing concessions we have made over the past two years,” Kibsgaard said on the call, adding that the recent increase in oil prices had strengthened its negotiations with customers.
The company said it was also working to tackle payment delays.
With activity recovering, Schlumberger said it would allocate investments, capacity and expertise to contracts that meet its financial return expectations.
One area the company is looking to gain market share is in drilling onshore North America.
The company said demand for its high-end drilling technologies had taken off with more oil companies looking to drill longer laterals, or so-called “super laterals.”
Oil producers, in a bid to boost production without increasing spending, are fracking more intensively by pumping higher amounts of fluid and sand, fracking more stages and drilling deeper and longer.
However, Schlumberger warned that the fracking market continued to be oversupplied with a “large number of very hungry players.”
Schlumberger’s shares were down 1.5 percent at $81.71 in morning trade on Friday. Oil prices were on track for their first weekly loss in five weeks due to a strong dollar.
Top oil field services provider Schlumberger sees early signs of recovery
Top oil field services provider Schlumberger sees early signs of recovery
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
