Schlumberger CEO: Service Costs To Adjust To Lower Energy Prices
2009年3月24日 - 8:59AM
Dow Jones News
Schlumberger Ltd. (SLB) Chief Executive Andrew Gould said Monday
that it may take a year and a half for oilfield service costs to
fully adjust to lower energy prices.
Schlumberger, the largest oilfield services company, and its
peers are reducing costs that climbed steadily over the last few
years as the rise in oil and natural gas prices spurred demand for
their services. However, the cost cuts haven't come fast enough for
many energy producers that are scrambling to rein in spending as
energy commodity prices have plunged since last summer as the
recession curbed demand.
Although crude oil has risen over the past few days, the
front-month contract on the New York Mercantile Exchange remains
more than 60% below its peak last year above $145 a barrel. Natural
gas is trading about 70% off its July peak, with a glut of gas from
new U.S. production further pressuring the market smarting from
poor industrial demand.
"We are equally trying hard to reverse some of the cost
increases we have incurred from our suppliers over the same
period," Gould told attendees at the Howard Weil Energy Conference
in New Orleans. "The whole process of cost and price re-adjustment
will take from 12 to 18 months."
Gould's comments come as energy companies are feverishly trying
to cut costs. Energy producers like Anadarko Petroleum Corp. (APC),
Chesapeake Energy Corp. (CHK) and Devon Energy Corp. (DVN) have
pulled back on drilling activity and trimmed production outlooks to
cope with the lower prices. Oilfield services companies are cutting
jobs, too.
Overall, the U.S. rig count has declined by more than 45% since
hitting a peak last fall, according to data from oilfield services
company Baker Hughes (BHI).
Earlier this month, Baker Hughes cut 4% of its workforce in its
second round of cuts this year. Schlumberger is considering another
round of layoffs.
"We have already announced a headcount reduction of 5%, which
will largely be completed by the end of the first quarter, and a
further reduction of a similar amount is likely over the coming
months," Gould said.
Devon Energy has cut its number of rigs from a high last fall of
112 rigs and expects to have 32 rigs running at the end of
March.
John Richels, president of Devon, said during a presentation
that the Oklahoma City-based oil and gas company is concentrating
its efforts on long-term projects and scaling back short-term
ones.
"We really see no reason to accelerate natural gas production
into a really low price environment," Richels said, noting that the
company will fund projects that will begin producing oil and
natural gas after 2009.
Richels said if commodity prices continue to deteriorate, Devon
could sell assets or enter into joint ventures.
Hans Helmerich, CEO of drilling contractor Helmerich & Payne
(HP), said during the conference that the pullback in drilling has
been dramatic.
"We have certainly been impacted much more than we expected by
the downturn," Helmerich said during a conference speech.
-By Jason Womack, Dow Jones Newswires; 1-713-547-9201;
jason.womack@dowjones.com