April 21 (UPI) -- Support services for offshore and international oil and gas activity are cause for optimism, with the global outlook positive despite recent demand signals, Schlumberger said Friday.
Schlumberger reported net revenue for the first quarter of $7.7 billion, 2% lower than during the three-month period ending in December but 30% higher than a year ago.
In North America, the company reported a 4% increase in revenue, its eighth straight quarter of positive growth. International revenue slumped 3%, though the company said that was better than expected.
Looking ahead, CEO Olivier Le Peuch said international and offshore markets are on the verge of a "strong resurgence."
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In the U.S. market, a March lease sale for drilling rights in the Gulf of Mexico saw 32 companies offering bids totaling $309 million, some $72 million more than the previous lease sale in 2021.
Onshore, however, Le Peuch said activity could plateau given the capital discipline embraced by exploration and production activity.
"On balance, the global activity outlook for the full year remains very solid," he added.
Le Peuch's comments are similar to those made during the first quarter. Fears of a global economic downturn could be bruising for the industry. Speaking in January, however, Le Puech said the future looks "very compelling."
Schlumberger outperformed rival Baker Hughes quarter-on-quarter, though the latter saw a much better performance compared to a year ago.
Baker Hughes reported net revenue of $289 million for the first quarter, about 24% less than during the fourth quarter, but 99% higher than a year ago. The company saw $7.6 billion in new orders during the three-month period ending March 31, down 5% from the fourth quarter, but 12% higher than during the same period in 2022.
The overall market, not to mention crude oil prices, has been volatile for much of the first quarter. A post-pandemic rebound in China is providing some degree of overall support, though the International Monetary Fund is fretting over a global economic downturn.
