Schlumberger Shares Climb on Strong Outlook for Upstream

Oil Daily, The, June, 2004

HOUSTON -- Oil field services giant Schlumberger says times are better right now in the energy industry's upstream sector than at any point since the 1970s. And that should translate into double-digit growth in the company's earnings and revenues, Chairman and Chief Executive Andrew Gould told analysts and investors this week.

Demand for oil and natural gas are growing faster than anticipated at a time when the rate of new discoveries has slacked up, Gould said. He cited an International Energy Agency estimate that the industry will have to invest some $6 trillion by 2030 to meet market requirements.

Expanding production capacity will require only about a quarter of that sum, leaving some $4.5 trillion to be spent solely to replace existing capacity lost...