HOUSTON, April 17 (UPI) -- Most of the decrease in the quarterly revenue for the first quarter of the year came from the "severe" decline in North America, Schlumberger said.
The oil services company said it would cut another 11,000 from its workforce, bringing the total to 20,000 since trimming expenses earlier this year to offset lower oil prices. That represents about 15 percent of the company's staff.
"Schlumberger first-quarter revenue decreased 19 percent sequentially driven by the severe decline in North American land activity and associated pricing pressure," Chairman and Chief Executive Officer Pall Kibsgaard said in a statement.
Baker Hughes last week reported 988 active rigs in the United States for the week ending April 10, down nearly 4 percent from the previous week and 46 percent lower year-on-year.
Elsewhere, Schlumberger said currency fluctuations in oil-rich and sanction-strapped Russia, as well as for OPEC-member Venezuela, led to reductions in international operations. Most of the quarterly loss, however, was attributed to lower activity in the exploration and production side of the energy sector.
Kibsgaard said that, while global economic signs point to a steady increase in oil demand, reductions in spending on exploration and production should mean the market remains tight. Investments in North America alone, he said, are expected to be down more than 30 percent from last year.
"We believe that a recovery in U.S. land drilling activity will be pushed out in time, as the inventory of uncompleted wells builds and as the re-fracturing market expands," he said. "We also anticipate that a recovery in activity will fall well short of reaching previous levels, hence extending the period of pricing weakness."
