- It is an unresolved question whether OPEC+ has spare capacity to prevent an oil supply gap as demand comes back.
- The expectation that OPEC+/NOCs will be able to balance the market still pressures North American producers and indirectly the oilfield services providers.
- Schlumberger derives most of its revenue outside of North America and has a dominant international position as a supplier to most NOCs.
- Even if OPEC+/NOCs can bring to the market enough supply to prevent oil prices from rising further, it will not happen without Schlumberger's help.
- Schlumberger is posed for more international activity and higher margins, which should filter down to the EPS over the next quarters.
For further details see:
Even If OPEC+ Fills The Supply Gap, Schlumberger Still Wins