Oil service industry walks out of the cold winter to "spring"

Author: Li Limin

[Core reading] The oil service giant recently released its first-quarter financial report.

Recently, global oil service giants Baker Hughes, Halliburton, and Schlumberger have successively released their first quarter earnings reports.

Performance in the first quarter was better than expected

Schlumberger released its first-quarter financial report, showing that global revenue totaled US$5.

According to data released by Baker Hughes, the company's total revenue in the first quarter was US$4.

At the same time, Halliburton’s latest performance data showed that the company’s total revenue in the first quarter reached US$3.

Slow recovery of North American shale oil and gas business

According to the latest forecast issued by the International Energy Agency (IEA), the global demand for crude oil this year will increase by 5.

James, senior manager of Evercore ISI, a market research organization, said that from Halliburton’s performance in the first quarter, the company’s drilling business is expected to continue to grow, which is a good start for the oil service industry.

　　It is worth noting that in the first quarter, Schlumberger divested part of its North American business.

　　According to an article by the US Oil Price Network, after the economic recovery of various countries and the successive reopening of borders, global crude oil demand has rebounded.

　　Another industry analyst believes that from the quarterly reports released by major oil service giants, oil service companies are gradually moving away from the North American shale oil and gas market.

　　Digitization may become a new direction to increase profits

　　Baker Hughes CEO Simonelli pointed out that “the global economy and crude oil demand will gradually get out of the impact of the new crown pneumonia epidemic.

　　However, although the oil service giants have come out of the haze of losses, their profit levels have not returned to their pre-epidemic levels.

　　The oil price network wrote that in the face of lower profit levels, oil service companies are also looking for new development directions.

　　Ernst & Young’s global oil and gas department head Brogan pointed out that in the environment of low oil prices, the application of digital technology to save costs will be the main way for oil service companies to improve operational efficiency and increase profits.

　　It is understood that the cooperation between oil service companies and technology giants has become closer in the past year.

　　Industry analysts believe that with the acceleration of the digital transformation of the oil service industry, the oil service giants will better control carbon dioxide emissions in the oil and gas sector, and will also help manufacture effective methane leak detection equipment and help companies reduce greenhouse gas emissions as a whole .