North American Hydrocarbons Growing
In North America, the hydrocarbon sector is booming. The sector’s activities are growing faster than expected.
| Sectors | Oil, Gas, Exploration & Production, Gas Exploration & Production |
|---|---|
| Themes | Markets & Finance |
| Companies | Schlumberger |
| Countries | Canada, United States |
North American hydrocarbons are developing faster than expected. Indeed, oil and gas activity appears to be growing at a steady pace. For Schlumberger, hydrocarbon activity is growing much faster than expected.
Hydrocarbons are developing, despite the risks
While the risks of recessions are present, customers do not seem to give them importance. On the other hand, they seem to be more concerned about equipment security and operational performance. Ignoring falling prices or potential recession.
In fact, hydrocarbon prices have risen sharply since the Russian invasion of Ukraine. Western sanctions and the Kremlin’s response have disrupted energy supplies and flows. Thus, the more the geopolitical situation escalates, the more prices rise.
Recently, the closure of Nord Stream 1 has had a significant impact on the energy market. Considered as a response to the sanctions against Russia, this jeopardizes the European supply. The possibility of a severe recession is a common idea on the old continent and is giving rise to measures. Unlike the North American situation, according to Schlumberger.
Unprecedented margins
Hydrocarbon prices have risen significantly this year. To date, it is possible to see this phenomenon through the price of Brent. On Wednesday, the barrel was trading around $90. This is a far cry from the record levels seen in recent months. However, this is still about 25% more than a year ago.
In addition, Schlumberger shares are currently trading at approximately $36.73 each. As for oil futures, they fell by about 4%. However, Schlumberger stock is up about 23% since the beginning of 2022.
The phenomenon of rising hydrocarbon prices is accompanied by record investment rates. Schlumberger says the business recovery is bringing in its best margins in a decade. She also added that investors should expect successive margin expansion.
