Schlumberger Limited (NYSE:SLB), a competitor and rival to the ever-present Halliburton Company, is a leader in the technology of drilling, production, and processing of oil and gas. The company was founded by the Schlumberger brothers, who invented the wireline logging technique for obtaining data in oil fields and geographical systems. Schlumberger Limited works in 85 countries and employs over 100,000 employees to help drill, process, and refine natural resources. With revenues of $35.5 billion in 2015, Schlumberger Limited manages large amounts of capital and equipment. The company manages business in Latin America, Russia, the Middle East, Asia, Europe, and Africa (1).
Since the OPEC deal was announced, SLB’s stock has jumped 6%, and is likely to continue to grow as the barrel quantity decreases. Because SLB works largely in the US, there will be a greater demand for their services and products, as Saudi Arabia’s oil cutback will utilize fewer geographical technologies and even fewer drills. While Wells Fargo earnings per share estimate cuts shave SLB’s earnings per share, the company differentiates itself enough to be a necessity in the industry. Goldman Sachs, a leading investment banking company, has taken a similar bullish approach to the company, and refers to SLB as one of the top oil service stocks (2).
(2) Duggan, Wayne. "3 Oil Stocks to Claim After OPEC Deal." InvestorPlace. N.p., 5 Oct. 2016. Web. 5 Oct. 2016.