Gould sees decade of double digit growth

Current situation most favorable upstream climate since 1970’s according to Schlumberger CEO.

Speaking at the Howard Weil Energy Conference in New Orleans last month, Schlumberger Chairman and CEO Andrew Gould described 2004 as a a year of ‘consistently broken records.’ These included an oil price high of $55.67 in October, US oil demand topping 20 million bbl/day and record land rig activity—all in all ‘the most favorable business climate we have seen in the upstream industry since the early 1970s.’


Gould noted that under-investment in all parts of the industry means that ‘tight supply and volatile prices are likely to remain with us for a number of years’. New supplies from Central Asia and the deepwater will not happen quickly enough to correct the situation and restoring a ‘comfortable margin’ of supply will take a number of years.


Gould opined that the oil service industry was ‘not in particularly good shape’ to meet the challenge of a rapid increase in activity with aging rigs and equipment and little spare capacity. A shortage of specialized E&P professionals means that ‘industry is fighting over the core of professionals that remain.’

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