Schlumberger (NYSE:SLB) will announce its Q3 earnings for 2014 on 16th October. The company is the biggest oilfield service firm in the world and is believed to have accomplished a lot of achievements in regards of production and global explorations this quarter. However, due to the fall in oil prices, the company did suffer some loss in its share price with the shares losing around 20%.
Then again, owing to the company’s (NYSE:SLB) extraordinary performance in oil rigs across Canada, America, Asia and the Gulf we should be seeing some heavy figures revealed during the session. The company’s earnings had an increment of about 7.7%, whereas the tailored revenues from the ongoing operations (which are not according to the GAAP’s customs) have risen by 17%.
However, Schlumberger’s (NYSE:SLB) has been increasing its drilling operations in the States. During the past few years Schlumberger (NYSE:SLB) has been making a lot of efforts to attain a sustainable position in the rapidly expanding US market. Concentrating on the global markets has been the company’s priority in the past with the international market providing Schlumberger (NYSE:SLB) 2/3rd of its total earnings.
There has been a constant rise in the off shore as well as on shore activities. The number of oil rigs has risen by 3% while the well count has also increased by 5%. The total number of rigs and wells in the US and the Gulf of Mexico have totaled to 1,869 rigs and 61 wells. Now we take a glance at Schlumberger’s (NYSE:SLB) key source of income during this quarter i.e. pressure pumping.
Although the pumping branch of the company had seen some downfall but there has been a lot of restoration. In fact the company had turned down a few proposals due to insufficient resources. All this has been made possible by the induction of the latest technology and a better marketing strategy. Another important thing to mention is that the company (NYSE:SLB) had increased the prices for its pumping services during the last quarter but this did not have a positive impact on the international market.
The company (NYSE:SLB) has seen some prominent increments in their drilling and artificial lift branches and till now. Schlumberger is by far the biggest producer of drill bits and there has been a tremendous rise (about 22%) in the number of horizontal rigs during this quarter as well. Owing to companies like Bakken (OTCMKTS:BKKN) and Eagle Ford Shales the gross crude oil production has risen to 8.8 million dollars.
Since the increase in the production of crude oil in the US, the company has seen great opportunities for their growth and development. Artificial lifts are used for providing pressure inside the oil reservoir in order to pump out the oil. So, this can mean good news for Schlumberger’s artificial lift branch as well and they can potentially see another branch giving them excellent revenue growth opportunities.