Schlumberger CEO Paal Kibsgaard thinks the industry is headed for tough times if current trends continue.
Any investor with a financial stake in the oil & gas market is doing themselves a disservice if they don’t listen to Schlumberger’s (NYSE:SLB) management call every quarter. As the world’s largest oil services company — with clients ranging from micro-cap producers to Saudi Aramco — it can take the pulse of the industry better than any other company out there.
This past quarter, CEO Paal Kibsgaard’s comments on the direction of the oil market were like an Aaron Sorkin inspired soliloquy. Not only did he lay out a slightly worrisome trend that no one seems to be paying attention to, but he also took Wall Street to task for its support of what he sees is the irrational support of the U.S. shale industry.
If you get a chance, go read the whole thing. If you are pressed for time, though, here are some of the firebombs Kibsgaard threw at the industry and what it could mean for the future of the oil markets.