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“Our first quarter results were solid, driven primarily by the overall strength and progress of our international business, but also by continued margin resilience in North America, in spite of both activity and pricing challenges.”
“international markets…revenue grew 30% year-over-year”
“the main concern in North America land remains the pricing, where the downwards trend in drilling, wireline and coiled tubing seen in the fourth quarter continued in Q1. In addition, we also saw further downward pricing pressure on a number of hydraulic fracturing bids during the quarter adding further uncertainty to the North America land market outlook.”
“at this stage we haven’t really changed our outlook. We have obviously seen the recent drop in brent prices which is mainly driven by the recent macro numbers and also seasonally lower demands but we still expect very strong support around the $100 per barrel.”
“if you look at spare capacity now, I believe it’s ticking around 4 million barrels, right? So, we expect it to be around this level in the near-term barring any major macro events. If you look at the balance of supply and demand, the overall demand growth projected for this year is about just short of 1% or 800,000 to 900,000 barrels a day.
Offsetting that demand growth is mainly the continued growth in North American production, and we don’t expect any significant growth in the non-OPEC production outside of North America. That leads to core in OPEC and more or less unchanged. That is the main balancing that we are looking at this is stage which is similar to what we talked about in January.”
“if you look at 4 million barrel of spare capacity on about 90 million barrels of production, it is around 4% and it is still about 1 million barrels below where we stood prior to the Libya conflict, right. So I don’t think this is an excessive spare capacity. I think its, if anything, probably relatively tight.”
“if you assume that crude prices are going to stay flat as you indicate, then I think it’s going to be a need for our customers to look at driving more costs out of the E&P value chain, and I will say integration”