Industry at large...

摘要

Its been a year or so since I shared my 'industry at large' folder during which time a lot has happened. The oil price had halved so this is not such cheery reading as last year but here goes... According the API, US crude production 'hit its highest level since March 1986 last November,' up 15% 9 million bopd and the highest monthly rate since 'peak oil' back in 1973. Speaking at a recent Credit Suisse event0301, Schlumberger's Patrick Schorn observed that while capex increased fivefold from 2001 to 2012, this only produced a 10% hike in production. This was 'becoming less and less sustainable even before the dramatic fall in the oil price.' Schorn criticized the industry's lack of integration, 'in many operations, a number of different companies are involved, each interfaces with the customer but looks after its own commercial interest.' Schorn also revealed that 2014 North American revenues for a Halliburton/Baker Hughes combination are $8bn (double SLB). But internationally, SLB beats HAL/BHI with $7 (vs 6) billion revenue and a (commercially interesting) 24% return vs. 15% for HAL/BHI. Oh, and SLB also has announced 9,000 layoffs and HAL, 6,400.