Morningstar Rating

Stock Research and Analysis

by Robert Bellinski, CFA

Bulls Say

Oil demand has remained steady, but oil has become increasingly more expensive to extract from the ground, a scenario benefiting oil-service firms.
Schlumberger has a distinct lead in the Russian oil-services market, which continues to grow, and could serve as a springboard for increasing number projects in the Arctic.
Schlumberger's aggressive spending on R&D, combined with opportunistic acquisitions, extends the breadth of its product portfolio and allows the firm to increase market share and profitability. Read more 

Bears Say

An oversupply of pressure pumping capacity in North America has weighed on Schlumberger's margins. Without a dramatic rise in the oil or gas rig count, weak pricing conditions could persist.
Brazil's Petrobras controls the largest deep-water exploration opportunities in the world, but has shifted its focus away from new deep-water exploration work through 2014 as it seeks to cut costs.
Schlumberger is active in the Russian energy markets, which are being affected by U.S. and E.U. sanctions related to exports of oil exploration technology. Read more 

Management

Schlumberger's management team has shown good judgment in making acquisitions, managing debt, investing capital, and returning cash to shareholders. In our view, managers are standard stewards of shareholder capital.
The firm generates a considerable   Read more 

Profile

Schlumberger N.V. is the largest oil-service company in the world. The firm works with international, state-owned, and independent oil companies to improve reservoir characterization,  Read more 

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3 Picks in a Richly Valued Market 
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