By Alison Sider
Schlumberger Ltd. (SLB) chief executive Paal Kibsgaard told
analysts on a conference call that he expects the North American
rig count to recover somewhat in 2013 but remain lower than it was
in 2012.
Mr. Kibsgaard he said he expects 100 to 150 rigs to be added
during the first quarter, but that will not be enough to boost the
overall rig count above the 2012 average.
However, he added the company expects the number of wells
drilled to be "slightly up" from 2012.
Schlumberger expects to cut its capital expenditures overall in
2013, driven by reductions in spending in North America.
Mr. Kibsgaard said the market for hydraulic fracturing services
is still oversupplied, and he is "not ready to predict" when
margins will turn around for services companies there.
And while onshore oil drilling is expected to pick up, "we do
not see a significant recovery in dry gas-related drilling
activity," in the U.S., he said.
In China, however, Mr. Kibsgaard said onshore shale gas drilling
is growing, with Schlumberger positioned to benefit. He said the
shale-gas resource in China has opened the onshore market to
foreign services companies that before had mostly worked
offshore.
Write to Alison Sider at alison.sider@dowjones.com
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