Schlumberger CEO says rivals nearly matched in shale
By Anna Driver
HOUSTON, Oct 3 (Reuters) - The chief executive officer of Schlumberger Ltd (SLB.N) said his company does not have a big lead over its rivals in North American shale fields, but that will likely change as the world's largest oilfield services company readies new technologies.
"I certainly think that our formation evaluation technology gives us an edge in understanding shale," Andrew Gould told Reuters on Thursday. But when it comes to drilling and completing shale gas wells, it is not an area where Schlumberger "has a huge lead," the executive said.
Even so, Schlumberger has some active research programs on shale gas that are one-to-three-years away from market, Gould said, declining to provide specifics.
Oil and gas companies are spending heavily to develop U.S. shale reserves, where natural gas is trapped in sedimentary rock, in areas like the Haynesville Shale in northern Louisiana and the Marcellus Shale on the East Coast.
Drilling in shale requires technology from oilfield service firms like pressure pumping, a technique that is used to fracture the rock and release the gas.
In the U.S. pressure pumping market, Halliburton Co (HAL.N) and BJ Services Co (BJS.N) are Schlumberger's largest rivals.
The success of shale drilling in North America has piqued interest in other parts of the world and will like lead to exploration elsewhere, Gould said.
"It's quite astonishing how the success the U.S. has had in developing its shale gas has raised the interest of other parts of the world that have prospective shale gas," Gould said. "It's a remarkable story how they have unlocked shale gas in a relatively short period of time."
Other areas with possible big shale reserves include Eastern Europe and Australia, the executive said.
Shares of Schlumberger climbed more than 6 percent, or $4.47, at $76.53 on the New York Stock Exchange, outperforming a 4 percent gain in the Philadelphia Stock Exchange index of oilfield service companies .OSX. (Editing by Leslie Gevirtz)
