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Schlumberger: No 'Huge Danger' of Oil Price Collapse

 
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User ID: 156402
United States
10/23/2006 11:14 AM
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Schlumberger: No 'Huge Danger' of Oil Price Collapse
Sooner or later I believe US will become less dependant on foreign oil.

Wouldn't it be nice to just tell OPEC to get fucked !

[link to www.rigzone.com]

Schlumberger: No 'Huge Danger' of Oil Price Collapse
by Brian Baskin Dow Jones Newswires Friday, October 20, 2006


HOUSTON Oct 20, 2006 (Dow Jones Newswires)
OPEC's plan to cut crude production by 1.2 million barrels a day won't affect the services industry, Schlumberger Ltd. (SLB) Chief Executive Andrew Gould said Friday.

"OPEC is defending the price, but I don't think there is a huge danger of a price collapse," he said.

The Organization of Petroleum Exporting Countries announced its decision at a meeting in Qatar on Thursday. Front-month crude

futures on the New York Mercantile Exchange settled at $58.50 that day, off $20 from their July high.
High prices in the last two years have encouraged oil companies to explore oil fields once considered prohibitively expensive to drill, including the ultra-deepwater Gulf of Mexico and reserves in Siberia.

The drilling boom has helped oil-field services companies like Schlumberger to have a string of stunning quarters. On Thursday, the world's largest services firm reported a third-quarter net profit of $999.8 million, or 81 cents a share, on revenue of $4.95 billion. Both profit and revenue were nearly double figures from the same period in 2005. Analysts' consensus forecast was for earnings per share of 77 cents on revenue of $4.94 billion.

Producers won't back off just because prices have dropped back a bit, Gould said, speaking to analysts on a conference call tied to the earnings release.

"We don't need $65 oil for our customers' spending plans to be maintained," he said. "They will maintain them at a much lower price."

Royal Dutch Shell PLC (RDSA), for example, will continue with its exploration projects in the Gulf of Mexico even if oil drops into the low $40s, John Hofmeister, president of U.S. operations, said on Wednesday.

Some projects remain feasible if oil drops as low as $20 a barrel, he said.

Gould said the task of replenishing reserves in the face of soaring demand will keep services companies busy. And demand shows no sign of slowing.

"It's true U.S. crude and product inventories are high, but if you look across the world, they're not very high," he said.
Which way did she go ?
Anonymous Coward
User ID: 149207
United States
10/23/2006 01:18 PM
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Re: Schlumberger: No 'Huge Danger' of Oil Price Collapse
Just exactly why would oil price collapse be a danger?
Looks to me more like it would be boon to the economy. Everyone would have more money to spend elsewhere.
Anonymous Coward
User ID: 157159
United Kingdom
10/23/2006 01:47 PM
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Re: Schlumberger: No 'Huge Danger' of Oil Price Collapse
Schlumberger are an oil services compamy, what the hell you expect they're gonna say?
Anonymous Coward
User ID: 157159
United Kingdom
10/23/2006 01:50 PM
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Re: Schlumberger: No 'Huge Danger' of Oil Price Collapse
Just exactly why would oil price collapse be a danger?

 Quoting: Anonymous Coward 149207


Global deflation.





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