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Michael Fitzsimmons
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I focus on investments in the oil & gas sector with an eye for dividend income and long-term capital appreciation. I typically allocate a portion of my own portfolio and devote some of my Seeking Alpha articles to small and medium sized companies offering compelling risk/reward propositions.... More
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  • Words from Schlumberger's CEO 3 comments
    Apr 9, 2009 9:12 PM | about stocks: SLB

    I just got around to reading Schlumberger's annual report. I found this comment by CEO Andrew Gould, who should know, very interesting:

    "The most important indicator of a future recovery in oil field services activity will be a stabilization and recovery in the demand for oil. The recent years of increased exploration and production spending, however, have not been sufficient to substantially improve the supply situation. The age of the production base, accelerating decline rates, and the smaller size of recently developed fields will mean that any prolonged reduction in investment will lead to a strong rebound in activity in the future."

    I added the underline. Now, consider the fact that over the past 4-5 years, oil companies' exploration and production budgets were large and growing. Yet, despite these investments, the CEO of SLB says the supply situation has not been significantly improved.

    Now, the US imports 65% of its oil. Perhaps someone should ring Energy Secretary Chu and let him know that being "agnostic" on natural gas transportation is not going to win him a 2nd Nobel prize. What a friggin moron.

     

     

    Themes: Energy Secretary Chu Stocks: SLB
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Comments (3)
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  • longoil
    , contributor
    Comments (764) | Send Message
     
    Fitz,

     

    It is refreshing to see how honest oil executives are about peak oil.
    I have seen similar remarks by the CEO of Total, Christophe de Margerie, as well as the CEO of Chevron, David O'Reilly.

     

    You do not see any scandals or incompetence in the oil industry, like there is in the banking and insurance industries as seen daily on television.

     

    By the way, you are posting a lot of blogs during tax season, LOL.
    10 Apr 2009, 08:36 AM Reply Like
  • bluesmoke
    , contributor
    Comments (796) | Send Message
     
    John Mauldin's latest newsletter discusses George Friedman at STRATFOR's views on the latest G-20 summit. What is so interesting is how Russia is holding so much of the EU hostage over natural gas supplies. Seems to me this line of reasoning should portend dire consequences if our oil supplies were cut off. Here is the article

     

    www.investorsinsight.c...
    10 Apr 2009, 09:59 AM Reply Like
  • longoil
    , contributor
    Comments (764) | Send Message
     
    User 357469,

     

    Interesting theory you have there. Since you enjoy reading people's feedback history so much, I suggest you look at my feedback history more carefully and you will see my jump into the Top 20 to do with the nearly 50 positive feedbacks I have gotten from my comments on James Quinn's article on $200 oil over the last day.

     

    I suggest you get you facts straight before making baseless accusations.
    10 Apr 2009, 01:29 PM Reply Like
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